Hello, everyone.
Speaker AThis is Omni Talk Retail.
Speaker AI'm Chris Walton.
Speaker BAnd I'm Anne Mazinga.
Speaker AAnd we are coming to you live from the FMI conference, courtesy of Simbi.
Speaker AWe're at the simbi booth, booth 108.
Speaker AWe'll be here for the next two days.
Speaker AAnn.
Speaker ATwo days.
Speaker BSo much content coming.
Speaker ASo much content.
Speaker AMore content, I think, than we've ever produced per hour of any conference, any show in our history.
Speaker AAnd I'm excited.
Speaker BWe've got our running shoes on.
Speaker BWe're ready.
Speaker AWe do, we do.
Speaker AAnd to kick us off.
Speaker ATo kick off interviews today, we have Stan Switten, the VP of Non Perishable Grocery at Sprouts.
Speaker AStan, welcome to omnitalk.
Speaker CFirst of all, thank you.
Speaker CThank you very much, Chris.
Speaker AAnd we're excited to have you kick off our coverage, too, because we actually.
Speaker AOr specifically, I think I actually named Sprouts our Grocer of the year for 2024.
Speaker ASo congratulations for that as well.
Speaker CThank you.
Speaker ATons of great success.
Speaker CYes.
Speaker CThe team's super proud of the acknowledgement and excited about 2025.
Speaker BWell, Stan, let's start with giving our audience a little bit of background on what your role is at Sprouts and kind of what kind of falls under your purview there.
Speaker COkay.
Speaker CI'm a merchant, so we're responsible for what we carry, what we sell it for, and where it's placed in the store.
Speaker CAnd I have five departments under my desk, so I have grocery, dairy, frozen beer, and wine in bulk.
Speaker CAnd I have four directors that lead those respective departments.
Speaker BAnd, Stan, where did you start?
Speaker BLike, you've been in the stores for a while, right?
Speaker CYeah, I've been a.
Speaker CI've been a grocer all my life.
Speaker CPretty proud to say that I'm a grocer.
Speaker CI've been doing it for 37 years and started in Arizona with a local chain there and have progressed, you know, over time.
Speaker AYeah, Stan and I were.
Speaker AWe were chatting before we got started.
Speaker AIt turns out he went to my rival high.
Speaker AOne of my rival high schools, which is right down the street from.
Speaker AFrom where I grew up in Arizona as well.
Speaker AAll right, so.
Speaker ASo you've got a lot of categories under your purview.
Speaker AHow does your job ladder up to the overall sprout strategy that's been so successful these past few years?
Speaker AOr said another way?
Speaker AWhat do you focus on for 2025 in your job?
Speaker COur team is 100% committed to, you know, a relentless pursuit of our core customer.
Speaker CAnd how we show up is through driving innovation and differentiation.
Speaker CWe very much want to have a healthy, well balanced, good nutrition in our stores that meet the customer's health and wellness needs overall and what they eat and what they put in their body.
Speaker BWell, we toured a lot of Sprouts locations in Phoenix when Chris and I were there last year.
Speaker BIt quickly became one of my favorite places to shop because of the little section right when you walk in of all the new and, I guess, testable.
Speaker CProducts right now, like, it's our Innovation Center.
Speaker BInnovation Center.
Speaker CYou're describing our Innovation Center.
Speaker CYes.
Speaker BThank you.
Speaker BSo I'm curious, in your role and with the success that Sprouts has had, what do you attribute to that success?
Speaker BAre there products that you carry?
Speaker BIs there a selection or something about the store experience?
Speaker BWhat do you think it really is that makes Sprouts as successful as it has been?
Speaker CI would say we know who our customer is.
Speaker CWe have a very clear line of sight to who we want to shop in our stores.
Speaker CAnd a lot of the decisions we make are grounded in that customer and what they need from us.
Speaker CYou know, as you talk about the Innovation center, we have a chief foraging officer, Kim Coffin, who's an amazing.
Speaker CShe's amazing.
Speaker CShe's an amazing woman.
Speaker CYeah, I love her job.
Speaker CShe actually hired me.
Speaker CYep, she hired me.
Speaker AShout out to Kim.
Speaker CAnd it's the second time I got to work with Kim.
Speaker CI worked with her in a previous role at Albertsons back in the day, and when I had the opportunity.
Speaker CWhen we had the opportunity to reconnect at Sprouts, she hired me.
Speaker CAnd it's been a great eight years.
Speaker CI'll be nine years there in March.
Speaker CSo Kim runs our innovation team, and they're the tip of the spear.
Speaker CYou know, we're very aggressive.
Speaker CWe pursue cool, unique brands that are healthy and fit our ingredient standards.
Speaker CAnd Kim's team is on the tip of the spear.
Speaker CWith the Innovation center constantly cycling, you know, new brands that might be smaller or.
Speaker CWe're kind of like, this may or may not work.
Speaker CAnd that Innovation center gives us the opportunity to really see how that works in store, live, and then we can make a decision if it graduates to the shelf or.
Speaker COr doesn't.
Speaker BAnd how does Sprouts do that, Stan?
Speaker BLike what.
Speaker BWhat do you think is unique about Sprouts as an organization that you are able to bring in?
Speaker BBecause some of them are, like, very.
Speaker BYou know, they're.
Speaker BThey're still pretty early brands that you're bringing in, but you're able to put them on shelf and I'm shopping them right next to the, the Sprouts favorites that you've carried for a long time.
Speaker BLike, what is it about the organization or the culture that allows you to facilitate bringing in these, these new brands?
Speaker CWell, we have an amazing culture at Sprouts that reflects who we are.
Speaker CAnd you know, Kim's team, Kim has a core group of folks that she works with in the industry that helps us find cool, innovative items.
Speaker CAnd our category management team, you know, best in class and they aggressively pursue innovation and they have a lot of relationships.
Speaker CSo we take a lot of innovation directly to the shelf and work collaboratively with the foraging team on, you know, what an item is, where it should be placed in the store, what its life cycle might be.
Speaker CAnd, and are we going straight to shelf or the innovation center or whatever?
Speaker CBut, but we're, we're aggressive and we, and we, we thrive on it.
Speaker CSo it's a very difficult to execute.
Speaker CIt's very difficult to bring some of that to market.
Speaker CSo there's a lot of pain involved.
Speaker CBut, but it's fun, It's a very fun journey and it's great to meet some of the founders and some of the, the folks that are in, in our channel and they're passionate, passionate people that believe in what they do.
Speaker CSo it's fun to partner with them and get to know them.
Speaker BI bet.
Speaker AAnd I imagine your customer wants that too.
Speaker AYou mentioned the customer before.
Speaker AWhat are some of the defining characteristics that you would call out of the sprouts customer?
Speaker CThe sprouts customer wants high quality, whatever they're eating.
Speaker CI mean, they want high quality, good, nutrient dense food.
Speaker CAnd it's grounded in attributes and reason to believe on why we sell the item and why we carry it.
Speaker CSo it's a very symbiotic relationship with them.
Speaker CAnd like I said earlier, we pursue them in a meaningful way.
Speaker CWe want to show up for them in a genuine, genuine, sincere way with good food.
Speaker CRight.
Speaker ASo there's a lot of intentionality in the items you're putting into the store in terms of the thought process that goes into them.
Speaker CYeah, I'm doing a lot of meetings here at FMI and a lot of the brands I speak to, I'm very, very clear.
Speaker CEvery facing, every item on the shelf matters.
Speaker CIt's sprouts.
Speaker CThere is no room for something that's not doing well.
Speaker CEvery facing.
Speaker CBecause we have small stores, we're very, you can walk in the front door, look across the store, see our beautiful produce department.
Speaker CWe have some of the highest quality Meat.
Speaker CIn the industry, we have a vitamins department that I'd put against anybody.
Speaker CBulk department that is, you know, hundreds of items in loose bulk that you can shop and buy.
Speaker CSo we show up, and we really try to meet our customer where they're at and give them the items that they want every day.
Speaker AAll right, so I want to ask you a fun question now as we're kicking off this conference.
Speaker AYou've got a lot of categories under your watch.
Speaker AJust to name a few of them, I wrote them down.
Speaker AGrocery, dairy, bulk, frozen, and beer and wine.
Speaker ANow, my next question could be asked, like asking you to pick between your favorite children, but do you have a favorite of those categories in your long career in retail and particularly in grocery?
Speaker CI've got four directors that just perked up right there when they heard that question.
Speaker CAnd I love all my children equally.
Speaker CIs my answer.
Speaker CNo.
Speaker CI mean, I love healthy food.
Speaker CAnd as a grocer, I didn't know a lot about food when I started with Sprouts nine years ago.
Speaker CAnd I was shocked how long a career I'd had and really hadn't read an ingredient label and understood what people were consuming and my role in that.
Speaker CAnd it's been a very nice journey in the last nine years to learn all about the different departments in the store and what we sell and why we're different, what makes us different.
Speaker CAnd it's just.
Speaker CIt's.
Speaker CI'm very proud of the company that I work for.
Speaker BYeah, it gives you a lot of purpose, I imagine.
Speaker CYeah.
Speaker CIf I'm on a plane and I'm wearing a Sprouts shirt, and I've worked for five different retailers, the first thing somebody will say is, do you work for Sprouts?
Speaker CAnd I'll be like, I do.
Speaker CI do.
Speaker AI see that idea.
Speaker CAnd then the next word they'll say to me is, I love sprouts.
Speaker CAnd it's nine out of 10 times that.
Speaker CAnd then the next thing is, when are you putting a store near me?
Speaker CBecause I used to live in Colorado and now I don't.
Speaker CAnd.
Speaker CAnd I'm like, just give us five minutes.
Speaker CJust give us five minutes.
Speaker CWe'll be there.
Speaker CWe'll be there.
Speaker CWe have an aggressive growth plan.
Speaker BYou do.
Speaker BI'm excited.
Speaker BWe're also waiting with bated breath up in Minneapolis for our first Sprouts.
Speaker BWell, I want to close this out by just asking you a little bit.
Speaker BYou mentioned you're here having a lot of meetings with brands, especially with, I think, the purpose that you just put forward about the type of brands that you're going to carry on your store is in your stores.
Speaker BWhat do you look for in these conversations here?
Speaker BAnd what, what do you like to do here while you're at fmi?
Speaker BWhat's really important to get accomplished?
Speaker CFor me, it's important to meet executive leaders, you know, in each, in each of the business meetings I meet with and understand how we prioritize them and how they prioritize us.
Speaker CYeah, it's super important that we're in lockstep on innovation.
Speaker CAnd as they come to market, we want to be the, we want to be the company that they think of first to innovate and bring new items to market.
Speaker CAnd then I've had a lot of conversations about supply chain, quite frankly, and making sure that we can get a disproportionate amount of the type of goods a lot of people carry.
Speaker CThe items we carry because they have to check a box and they want to chase our customer where we're very intentional and we carry these items because your customers want them and they want to turn them.
Speaker CSo very focused on the supply chain conversation between our distributors, between our manufacturers and our company.
Speaker CAnd how can we collectively get together and work better together to really just show up better for our customers and have more in stock availability on a day in and day out basis.
Speaker AHow many FMIs is this for you?
Speaker CJust my second.
Speaker ASecond.
Speaker AOkay, nice.
Speaker AYeah, it's our second.
Speaker CCongratulations.
Speaker BYeah, thanks.
Speaker CHere's to getting invited back a second time.
Speaker ARight.
Speaker CWho knows about the third?
Speaker CAfter people see this, we'll get.
Speaker AMight not be allowed back for the next year.
Speaker ANext year.
Speaker AWell, thank you, man.
Speaker AThanks for joining us, Chris.
Speaker CThanks for reaching out and inviting me to hook up with you and meet you at fmi and I've enjoyed meeting you.
Speaker CYeah, thank you.
Speaker AYes, we do.
Speaker AWe love Sprouts.
Speaker ALike Anne said, we were in the store last February, toured a number of stores with your real estate team and super impressed by the strategy and the leadership from the top down.
Speaker AAnd it's emblematic in you being here with us today too.
Speaker ASo we thank you as well.
Speaker ASo again, Stan Swinton of Sprouts.
Speaker AWe'll be here all day from FMI and until next time and be careful out there.