The news: Sprouts Farmers Market is looking to sharpen its value proposition by rolling out a new pricing strategy nationwide in January.

The grocer, which has reported three straight quarters of comparable sales declines, is taking a multipronged approach. It plans to give private label goods a bigger role, offer differentiated products at various price points, highlight value on healthy essentials, expand convenient meal solutions, and personalize the shopping experience to help customers discover products and save.

Early efforts to balance differentiation and value appear to be working, said Nick Konat, the grocer’s president and COO who is set to become CEO in January, on the company’s earnings call. He pointed to “encouraging customer response” to items like Wellness Bowls priced below $10, $29.99 family meals for four, and fresh-baked organic sourdough for $4.

Why is this happening? Sprouts' current positioning isn't resonating with enough shoppers. Even its core customers are checking out with smaller baskets amid a challenging economic environment, Konat said.

The grocer lowered its 2026 comparable sales outlook and now expects a 1.7% decline. While it is reluctant to compete on price alone or resort to broad-based discounting, it recognizes that it needs to do more to convince shoppers that its differentiated assortment is worth paying for.

Implications for retailers: Sprouts faces a difficult balancing act. As major players like Amazon, Walmart, and Kroger put greater emphasis on price, convenience, and value, it needs to appeal to budget-conscious shoppers without losing what sets it apart. That means offering distinctive products that give customers a reason to shop at Sprouts while making sure prices give them a reason to keep coming back.