Natural Grocers accelerates 2023 store growth despite 2 store closings next month

Natural Grocers by Vitamin Cottage, Inc. is aiming to accelerate store growth despite its recent announcement of two store closings in Dallas area.

The Colorado-based grocery retailer on Friday announced its plans to close two stores due to low performance in the Dallas-Fort Worth area on June 27.

"We made the difficult decision to close two lower-performing stores, Fort Worth-North and Coppell," said Kemper Isely, co-president of Natural Grocers, in a statement. "We remain committed to serving the Dallas-Fort Worth metroplex and believe that our neighboring stores will continue to provide these communities the world-class customer service, quality and affordability for which Natural Grocers is known."

On the heels of these store closures, Natural Grocers has staked its claim in Colorado’s Gunnison Valley with a new store set to open in the area in September at 1000 N. Main Street. Western Slope shoppers in Colorado from 2:30 p.m. to 4:30 p.m. on May 17 will be able to participate in Natural Grocers’ community meet and greet at the Gunnison Workforce Center at 109 E. Georgia St., to learn more about the retailer and its sustainable, health-focused practices.

“We are excited to be opening a new store in the beautiful city of Gunnison," said Michelle Hines, senior recruiter for Natural Grocers. "We look forward to serving the members of this community with our world-class customer service in the friendly and welcoming shopping environment we're known for.”

After easing on new store additions, Natural Grocers is poised for store growth. According to the retailer’s website, new stores are coming this summer to Kennewick, Washington, and Loveland, Colorado.

The grocer said it plans to open four to six new stores this year and relocate or remodel two to three locations. 

Second-quarter earnings results for Natural Grocers included a bump in traffic, which drove a 2.7% increase in comparable-store sales for the natural-and-organic retailer, prompting the grocer to raise its guidance for the year.

During the second quarter, net sales increased $11.4 million, or 4.2%, to $283.2 million, compared to the year-ago period, due to a $7.4 million increase in same-store sales and a $4.9 million increase in new store sales, partially offset by a $0.9 million decrease in sales related to one store that closed in fiscal 2022, the company reported.

The natural-and-organic retailer is based in the Denver suburb of Lakewood and employs about 1,600 people in its home state.

Natural Grocers, which was founded in 1955, sells natural and organic groceries, body care products and dietary supplements at 166 stores in 21 states.