Sprouts' new retail media network will be powered by Instacart's Carrot Ads platform.
Sprouts Farmers Market is getting in on the retail media game with the help of Instacart’s Carrot Ads platform. The grocer will now be able to establish and grow its retail media network on its owned and operated websites and apps, while also allowing advertisers to drive measurable growth.
For the first time, Carrot Ads will allow brands to target dedicated online campaigns specifically on the Sprouts e-commerce experience, ensuring maximum exposure and engaging relevant audiences. Those brands will have access to metrics, such as attributed sales and return on ad spend, from their Sprouts campaigns.
“At Sprouts, we are committed to serving our health-enthusiast customers, and are excited to offer new ways to connect them with our innovative and distinctive brand partners,” said Nick Konat, president and COO at Sprouts. “By leveraging Instacart’s ad technology, we are enabling this connection – and giving our brand partners even more ways to grow with us and our customers. We’re proud of our partnership with Instacart for continuing to find ways to bring our great brands, customers, and products together.”
The partnership also promises to unlock new opportunities for emerging brands that produce innovative and better-for-you products. The platform lets emerging brands invest in the consumers who are shopping Sprouts, helping grow awareness and inspiring trials.
“We’re committed to providing all grocers with the technology they need to serve their customers better – no matter how they choose to shop,” said Chris Rogers, chief business officer at San Francisco-based Instacart. “We are proud to deepen our partnership with Sprouts and bring their vision for a new retail media network to life. We’re seeing so much growth in the retail media space, as these networks provide a huge opportunity for retailers to open new revenue streams, enhance the customer experience, and increase loyalty.”
Continued Rogers: “Today’s news is also a game-changer for the thousands of brand partners already advertising via Instacart. They can leverage the best of Instacart Ads to develop targeted Sprouts campaigns to drive meaningful growth for their business and stay ahead in today’s dynamic retail landscape.”
Sprouts has partnered with Instacart since 2018 when they launched same-day delivery via the Instacart App. The companies have since launched curbside pickup at nearly all stores, EBT SNAP payments, virtual convenience, and alcohol delivery and pickup in select states.
Meanwhile, Sprouts released its first-quarter earnings report earlier this week, which included comparable-store sales growth of 3.1%, total sales growth of 6% and adjusted diluted-earnings-per-share growth of 24%. Net sales totaled $1.7 billion, a 6% increase from the same period in 2022.
The grocer was especially pleased with its e-commerce sales, which grew double digits and represented 12.2% of total sales for the quarter. Sprouts recently improved its site design and digital experience to improve conversion and sales.