Sprouts Beating Whole Foods In Price War, Analysis Shows

Sprouts Farmers Market Inc. (SFM), one of Whole Foods Market Inc. (WFM)’s fastest-growing competitors, is undercutting the prices of its larger rival by about 13 percent, according to analysis by Bloomberg Industries.

A basket of 148 brand-name items, including Kashi cereal, Talenti gelato and Applegate deli turkey, is $691.92 at Sprouts and $780.64 at Whole Foods, according to a study led by Jennifer Bartashus, a Bloomberg Industries analyst in Skillman, New Jersey. The difference stems largely from Sprouts’ use of promotional discounts — something Whole Foods generally shies away from. If sale prices are excluded, Sprouts is only about 2 percent cheaper than Whole Foods.

“Sprouts is being very aggressive, especially in produce, on being a value-oriented organic retailer,” Bartashus said in an interview. Whole Foods may “need to consider changing their strategy around sale prices.”

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