Sprouts Farmers Market saw higher annual sales, which an analyst has attributed to the acquisition of new customers and the opening of 30 new stores last year.

The supermarket chain’s net sales grew 7 per cent to $6.8 billion as comparable store sales growth stood at 3.4 per cent.

“Sprouts may not be the lowest priced grocer in the market, but it is one of the lowest priced health-focused supermarkets and this is winning it custom from Whole Foods and independent retailers,” said GlobalData MD Neil Saunders.

Saunders noted that the company acquired some shoppers who previously purchased organic and healthy selections at mainstream grocery stores while keeping the loyalty of its existing shoppers.

“As a result of this dual trend, inflation has been more of a friend than a foe to Sprouts,” said Saunders.

The company’s net income, however, slightly slid 0.9 per cent to $258.9 million.

The analyst said that Sprout Farmers Market’s optimization of its small regionalized grocery format, which makes it less costly to build and more efficient to operate, will allow the company to increase profitability as it aims to open 35 new stores this year.

For this year, the company forecasts net sales growth of 5.5 per cent to 7.5 per cent and comparable store sales growth of 1.5 per cent to 3.5 per cent.