Amazon has been expanding its reach across the retail industry and has acquired many companies over the years. Sprouts is one of them, and here’s the scoop on what you should know about this acquisition.
What Is Sprouts?
Sprouts is an American grocery chain based in Arizona that focuses on healthy, organic, and natural products. The company was founded in 2002 and has over 300 stores across 23 states in the US. It is currently owned by Kroger, a major American grocery chain.
How Was Sprouts Acquired by Amazon?
In 2017, Amazon announced its acquisition of Whole Foods Market, another US-based grocery chain. After the purchase, Amazon started to make further investments in the industry by acquiring smaller companies such as Sprouts.
In June 2018, Kroger announced that it had reached an agreement to sell Sprouts to Amazon for $13.7 billion. The deal was officially completed in November 2018.
What Does This Acquisition Mean for Amazon?
The acquisition of Sprouts is a strategic move by Amazon as it expands its presence in the grocery market. By acquiring a company like Sprouts, Amazon can leverage its existing infrastructure to expand its reach and tap into a new customer base. Additionally, with the addition of Sprouts’ product selection, Amazon can offer customers more options when it comes to healthy groceries.
What Does This Acquisition Mean for Consumers?
For consumers, the acquisition means that they will have more options when it comes to buying healthy groceries online or in-store at Whole Foods Market or Sprouts locations. Additionally, with Amazon’s competitive pricing structure, customers may find better deals on organic items than they would at other retailers.
Conclusion: Is Sprouts Owned by Amazon?
Yes, Sprouts is owned by Amazon through their acquisition of Kroger’s stake in 2018. The acquisition has allowed Amazon to expand their reach into the healthy grocery market and give customers more options when it comes to buying organic items online or in-store at Whole Foods Market or Sprouts locations.