Natural Grocers® Announces the Closure of Downtown Denver Store at Colfax and Washington

Rhea-AI Summary

Natural Grocers® has announced the closure of its Downtown Denver store at Colfax and Washington on October 31, 2024. The decision was made due to operating challenges, including retail theft and safety issues impacting the store's performance. Starting October 4, the store will offer a 10% discount on all items, with all sales being final.

Kemper Isely, Co-President of Natural Grocers, expressed the difficulty of this decision and the company's commitment to serving the Downtown Denver area through neighboring stores. The company is working to identify transfer opportunities for affected Crew members to other stores, with transition packages offered to those unable to transfer.

Natural Grocers will continue to serve customers through its nearby locations in Denver, including Leetsdale & Alameda, RiNo, Design District, Central Park, Tennyson & 38th, and Colorado & Evans.

Positive

• 10% store-wide closing sale starting October 4, 2024
• Offering transfer opportunities for affected Crew members
• Providing transition packages including severance pay and health benefits for non-transferred employees
• Continuing to serve Downtown Denver area through neighboring store locations

Negative

• Closure of Downtown Denver store at Colfax and Washington
• Operating challenges including retail theft and safety issues impacting store performance
• Potential job losses for Crew members unable to transfer to other locations

Insights

Retail Analyst

The closure of Natural Grocers' Downtown Denver store highlights significant challenges in urban retail operations. The decision, driven by persistent theft and safety issues, underscores the broader trend of retailers struggling with shrinkage and security concerns in metropolitan areas. This closure, while isolated, may signal potential vulnerabilities in Natural Grocers' urban strategy.

The company's proactive approach in offering relocation opportunities and severance packages to affected employees demonstrates good corporate governance, which could mitigate potential negative PR. However, the closure might impact Natural Grocers' market presence in the competitive Denver area.

Financially, while closing an underperforming store can improve overall profitability, it also represents a loss of revenue stream and market share. The 10% discount on remaining inventory should help liquidate assets but will likely result in a short-term hit to margins. Investors should monitor whether this is an isolated incident or if similar issues affect other urban locations in the company's portfolio.

Market Research Analyst

The closure of the Downtown Denver store reveals Natural Grocers' adaptability in the face of challenging market conditions. By redirecting customers to six nearby locations, the company demonstrates a strategic approach to maintaining market coverage while optimizing its store network. This consolidation could lead to improved operational efficiency and potentially higher sales per square foot in the remaining stores.

The company's transparency about the reasons for closure—citing retail theft and safety issues—aligns with industry-wide concerns and may resonate with investors aware of similar challenges facing other retailers. This openness could be viewed positively as a proactive measure to address profitability concerns.

Long-term, this move might signal a shift in Natural Grocers' urban strategy, potentially favoring locations with lower operating risks. Investors should watch for any changes in the company's expansion plans or site selection criteria, as these could impact future growth prospects and the overall business model.

LAKEWOOD, Colo., Oct. 2, 2024 /PRNewswire/ -- Natural Grocers® announces plans to close its Downtown Denver store located at the corner of Colfax and Washington, on October 31, 2024. Natural Grocers' good4u^SM Crew will begin store-wide closing sales on Friday, October 4, with discounts of 10% off everything at the 1433 Washington St. location. All sales will be final.

The Denver – Colfax and Washington store is one of 46 Natural Grocers in the Company's home state of Colorado. Natural Grocers states the decision to close the store was made after careful consideration of the operating challenges, including retail theft and safety issues impacting the store's performance.

"We have been actively working to address the theft and safety issues impacting our store at Colfax and Washington for some time. Despite our investment in security and loss prevention strategies over the years, these factors have continued to challenge our ability to operate our store safely and sustainably, and we have made the difficult decision to close our doors at this location," said Kemper Isely, Co-President of Natural Grocers. "This was not an easy decision. We are grateful to our Crew members who have worked to provide world-class customer service in challenging circumstances and will partner with them to identify other opportunities at Natural Grocers. We remain committed to serving the Downtown Denver area, including our customers in the City Park West, Capitol Hill, Baker and Cherry Creek areas, 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."

The Company is working closely with each of its valued good4u Crew members who will be affected by this closure to identify transfer opportunities to other stores. Crew members who are unable to transfer will be offered a transition package, including severance pay and health benefits.

NATURAL GROCERS' NEIGHBORING LOCATIONS
After the Colfax and Washington location closes on October 31, 2024, Natural Grocers welcomes customers to shop at its nearby neighboring locations:  

• Denver – Leetsdale & Alameda
• Denver – RiNo – 38^th & Brighton
• Denver – Design District – Alameda & Broadway
• Denver – Central Park
• Denver - Tennyson & 38th
• Denver - Colorado & Evans

Learn more about Natural Grocers at www.naturalgrocers.com. Please direct media inquiries to kmacarelli@naturalgrocers.com.

ABOUT NATURAL GROCERS BY VITAMIN COTTAGE
Founded in 1955, Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products, and dietary supplements. The products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial colors, flavors, preservatives or sweeteners, or partially hydrogenated or hydrogenated oils. The Company sells only USDA-certified organic produce and exclusively pasture-raised, non-confinement dairy products, and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean, and convenient retail environment. The Company also provides extensive free science-based Nutrition Education programs to help customers and Crew make informed health and nutrition choices. Natural Grocers is committed to its 5 Founding Principles—including its "Commitment to Community" and "Commitment to Crew". In fiscal year 2023, the Company invested $15 million in incremental compensation and discretionary payments for Crew. Headquartered in the Union Square neighborhood of Lakewood, CO, Natural Grocers has 169 stores in 21 states. Visit www.naturalgrocers.com for more information and store locations. 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/natural-grocers-announces-the-closure-of-downtown-denver-store-at-colfax-and-washington-302264439.html

SOURCE Natural Grocers by Vitamin Cottage, Inc.

FAQ

When will Natural Grocers (NGVC) close its Downtown Denver store at Colfax and Washington?

Natural Grocers will close its Downtown Denver store at Colfax and Washington on October 31, 2024.

Why is Natural Grocers (NGVC) closing its Colfax and Washington store in Denver?

Natural Grocers is closing the store due to operating challenges, including retail theft and safety issues that have impacted the store's performance.

What discounts will be offered at the closing Natural Grocers (NGVC) store in Downtown Denver?

Natural Grocers will offer a 10% discount on everything at the Colfax and Washington location starting October 4, 2024.

How is Natural Grocers (NGVC) supporting employees affected by the Downtown Denver store closure?

Natural Grocers is working to identify transfer opportunities for affected Crew members and offering transition packages, including severance pay and health benefits, for those unable to transfer.