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Sprouts Farmers Boosts Curbside Pickup on Rising Coronavirus Woes

Zacks Equity Research

Thanks to social distancing to curb the spread of coronavirus, grocery and supermarket retailers are on their toes to serve the community. These companies are now supporting people through enhanced operational tools, including curbside pickup service across their stores. Impressively, curbside pickup has now become the effective way to meet customers’ demand in the wake of such unprecedented times. Renowned grocery retailer, Sprouts Farmers Market, Inc. SFM has also jumped the bandwagon.

By early-May, the company has announced the expansion of its grocery pickup service in partnership with Instacart, across all of its stores which total more than 340. The service offers more than 12,000 natural and organic products and will be initially available at the company’s Los Angeles and Central California locations. Prior to this, the company provided pickup service across 55 stores and grocery delivery in all key markets with Instacart.

Through the latest expansion, consumers will be able to plan their grocery pickup for the same day or in advance. They will be notified after their orders are ready for pickup, after which their personal Sprouts shopper will take the groceries to the selected pickup parking spot when the customer checks in.

Sprouts Farmers has been making several initiatives, including product innovation, customer experience and technology. The company is trying all means to provide ready-to-eat, ready-to-heat and ready-to-cook items to customers. Meanwhile, its Fresh Item Management Technology has been successful in its pilot phase and will help the company offer fresher products, improve sales and lower unproductive inventory.

Impressively, this Zacks Rank #1 (Strong Buy) stock has gained 15.7% against its industry’s 34.1% decline over the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.



How Others Are Meeting Impromptu Demand

A couple of days ago, leading rural lifestyle retail chain, Tractor Supply TSCO expanded its tie-up with Roadie, which helped it launch same-day delivery across all its 1,863 U.S. stores. Through this collaboration, the company will be able to support customers in small cities and towns. It will now provide same-day and next-day delivery for approximately 15,000 items, consisting of livestock feed, dog food, riding lawn mowers and more. Apart from these, popular consumer electronics goods’ retailer, Best Buy (BBY) has enhanced curbside service model, enabling customers to purchase items online. Impressively, the company is able to retain about 70% of sales versus last fiscal owing to its robust curbside service model when all its stores are shuttered.

Likewise, a leading food and grocery retailer Casey's CASY recently expanded partnership with DoorDash to boost its delivery capabilities. Impressively, this partnership allows Casey’s to reach approximately 350 stores where the service was not available earlier. This agreement helps Casey's deliver to 579 locations, offering items like made-from-scratch pizza, select appetizers and 20 oz soda. The company also cited that dozens of grocery and household articles will be added by this month’s end.
 
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Tractor Supply Company (TSCO) : Free Stock Analysis Report
 
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
 
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
 
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