We're seeing that in our business week after week after week, so we're feeling very confident about the sustainability of that. And I have one follow-up question. First, just wanted to ask on the e-commerce side looks like penetration rates for you were still climbing. So you had the combination of the kind of target customers that we've got at the moment, being getting access to very low profit, negative profitability items, whether it be in commodity chicken or sweet corn are the things that they were chasing after. Thank you for joining our call today. For the quarter, cash was impacted by higher bonus payout for the strong 2020 performance, and an increase in inventory in preparation of opening the Colorado DC. Students have the option to intern with a local organization to earn internship credit, filling another degree requirement for many students.
Our second DC coming online, so we feel good about that. For the first time And we said that's great, but what's even better is that we as we've come into April or starting to see this prove out of it. We're certainly aware of why will the margins have come from and partly it's about the promotion or unraveling of our very aggressive high-low promotional and actually negative profitability promotional. Jack Sinclair Appointed Chief Executive Officer. I - not just for us but for the whole industry in terms of how that plays through, and on the two year stack basis we're expecting a lot of our initiatives to gradually and just see an improvement in Q3, Q4 on a two year stack basis, as we start to kind of normalize the comparisons. We're seeing that kind of consistency as we kind of talked about our baskets holding quite well and that would be through across the country just to make. Just was curious if you could help us understand a little more context about what that looked like last year and what you were maybe comparing up against and is that comment just about in-store traffic or is that total transactions? Photo courtesy Global Education Office/ASU
We generally, actually, of course we expect to SG&A rate to be directionally flat for the year. For a reconciliation of our non-GAAP measures to the GAAP figures, please see the tables in our earnings release. Developing the next generation of leaders to grow with Sprouts is of great importance to me, and the future sparrows. As I've stated before, I believe 2020 was a turning point for Sprouts, and we're continuing to build on that success and momentum this year. We've got sustainable logistics improvements that can help to drive bottom line and we're pretty confident that we know that promotions aren't coming back in any aggressive way and on and on, high, low promotions or aggressive below cost promotions, so you put that together. In addition, we noted in one of our customer surveys, but the majority of our customers who reduced or eliminated trips to Sprouts during the pandemic, expect to return post-pandemic. These farming relationships will expand with our new local sourcing team hosts out of the DC with a wealth of experience in local sourcing. 
So buying an awful lot of empty volume and an awful lot of empty customers that not only were they attracting these, what we call the coupon clippers and we've identified those people. Market through a tumultuous time in the grocery retail industry in charge of Walmart's U.S. grocery division, the largest grocer in iCourse catalog. Were going to be putting ourselves in a place where weve got exceptional value in our produce and everyday products.. End season our local produce offering in Colorado will increase by more than four times our past assortment, the Colorado DC proposed produce from family-owned Strohauer farms that have been growing potatoes in Colorado since 1910, family-owned Petrocco farms only 30 minutes from our DC. [Operator Instructions] Our first question comes from the line of Mark Carden with UBS. Boney is a founder of the company and has been a board member since 2002. For the quarter, e-commerce was 12.5% of sales, reflecting a notable increase in January, as the country experienced a spike in COVID cases, settling back down to our fourth quarter 2020 levels by March. If worried to the right word but a little bit more conscious of inflation and the meat space and one or two of the other parts of the grocery business, and we're watching that closely. Some courses are offered in the countrys native language, but knowing the language is not necessary to participate in the program. The board has appointed Lawrence Chip P. Molloy to serve as interim CFO until a permanent successor has been named. Sprouts Farmers Market has named former Walmart grocery executive Jack Sinclair (left) as chief executive officer, filling a leadership vacancy arising from the exit of And then we're hearing more about rising inflation in food. award from ASU's W. P. Carey I think that's pretty clear our health enthusiasts target customers were probably more concerned about the pandemic and the implications for their health, run maybe the average customer. Find out more about the ASU Global Flex Program. So some positive indications there that the pivot in the strategy that we're making is starting to resonate and hopefully we'll be able to see that with a bit more clarity as some of the COVID haze subsides. Through our marketing journey, we have identified through our core customers have begun to increase our digital communication, and are starting to see this resonate with target customers. Now, let me hand off to Denise to discuss our financials in more detail, as well as our 2021 outlook. And we'll continue to look at that as well definitely we might want to expand on that a little bit. Year chosen by the W. P. Carey The new locations will have an even stronger emphasis on fresh fruits and vegetables than current Sprouts stores, which are distinguished by their centrally positioned produce section, and will place less emphasis on often-costly design features, like meat, seafood and deli counters. We continue to expect to maintain a majority of the gross margins rate improvement, we realized in 2020 with the first quarter experiencing outsize benefit, and the remaining three quarters, being pressured as we cycled from COVID benefits from shrink and buying opportunities we don't expect to repeat. And as we've said all along in this dialogue around what's been happening over the - through the pandemic as probably as people have reduced the number of places they go to do their food shopping, that we didn't benefit from some of the growth that happened previously. We're handling all of the all of the pickup at our store through our own labor which is making a difference in terms of both the speed and efficiency of the that and cost of it. Pork belly and bakery continued to grow on top of last year's COVID run out, fueled in part by innovation as well like Sweet Earth plant-based chicken alternative meals and dairy and strength from seasonal offerings and keto-based products in bakery. So, you know reasons to believe, particularly with those target customers that the positive traffic turn and holding the basket is something that we will continue to see. "Anything that is not offering a one-stop shop for the consumer seems to be kind of the negative side of this trend," said Mushkin. It's probably more complicated than that but, what are we missing here, if we're just sort of thinking about it more simplistically like that. But can you quantify, what percent of your customer base, you think that is? Scott Mushkin, who follows Sprouts as CEO of R5 Capital, said Sprouts has to execute on a number of fronts to fully achieve Sinclair's aspirations. We continued share buybacks in the second quarter, and year-to-date through May 2021 we've repurchased $5 million in stock, under the current authorization. Taking ASU courses online while being abroad helped relax my anxiety towards the idea that studying abroad would slow my academic development, said ASU Global Flex student Alex Saldana. Thank you. [emailprotected] The event, which begins at 11:30 a.m., is part of the Economic Club of Phoenix speaker series. And then with the positive returns to traffic, I think everybody was wondering well what will happen to basket, and we've been very pleased to see that while traffic has turned positive at the end of the quarter and into Q2, we're actually holding our basket pretty much in line with where we were coming through last year, rather than there being a tradeoff between that basket and traffic number. Our next question comes from the line of Chris Jordan with Goldman Sachs. This was my opportunity, Montoya said. During his study abroad in Madrid, Spain, Saldana completed an internship with a professional soccer team, Atletico de Madrid, which tied directly to his major in sports business. And this week, a new zero sugar sweetened option will be in our stores. So that's been a driver to our space and a driver to the fact that we're growing by more than most in this space. And but we also have an expectation that with the marketing campaigns and programs that we have out there, that we'll be able to continue to bring new customers in, as that kind of fear of COVID fear of shopping starts to subside, in the in the resonance of the messaging as of where goodness grows and what we stand for. Students can gain a new perspective by taking unique classes that are not typically offered at ASU, like the Economics of Wine in Rome or German Cinema in Berlin, while earning ASU credit. Now I you guys don't sell as much as some of your competitors in the way of popular CPG products, but are there any other factors that we should be aware of on the top line that may have held you back with a mainly vitamin driven, are customers still consolidating trips to larger stores, they sell adjusting to new strategy, any color here would be great? Well, I think we sculpt - we've been pretty. What we saw as we got to the very end of March and into April was the recovery of traffic. We know from all the data that we've done that there's plenty of people there, who aren't spending the dollars, so we'd like them to spend with us, partly because of awareness, and partly as we work better to communicate effectively with those target customers. After the speaker presentation, there will be a question-and-answer session. And in turn, we continue to manage the business under a number of scenarios, creating a bit wider than typical range for outlook. Yes. But I think there's some positive specifically related to the target customer that we'd reiterate. There's some sustainable operating improvements that we can all drive help us drive bottom line. We know we can improve continue to improve our strength. So we're not as worried about inflation in our fresh produce business, probably a little bit more worried about inflation. I think as things have evolved over the last few years, people are getting more interested in it, partly because of the health implications of the products and also because people are just more interested in where things come from," he said. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Our next question comes from the line of Scott Mushkin with R5 Capital. Thanks. We're not in that space. Our team's focused on waste reduction has reached a new milestone at almost 60% landfills diversion rate, rooted in our drive to increase food security for our communities who donating the equivalent of 23 million meals to local food banks. Thank you. Yes. 2020 was a pivotal year, not just for Sprouts, but for Americans in general, as we all tried to stay healthy. In the long run these relationships are creating a product innovation pipeline to keep our shelves full of unique trending merchandise. For more information about the Certainly. This new DC along with the new Florida DC to the open this quarter, we'll create a faster supply chain and build in our goals of our DCs within a 250 mile radius of our stores. Sprouts Farmers Market, Inc. ( NASDAQ: SFM) Q1 2021 And I say, first we she did research directly and people have told us that where they had reduced their shopping trips to sprouts before because of the pandemic that the majority of them have intent to return as the pandemic subsides.
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