Natural Grocers® Announces the Closure of Tucson-Area Store at Broadway and Kolb

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Rhea-AI Summary

Natural Grocers announced the closure of its Tucson store at Broadway Boulevard and Kolb Road on December 11, 2024. Starting December 3, the store will offer closing sales with 25% discounts on dairy, frozen, grocery, and produce items, and 10% off other products. The decision comes due to lease expiration, operational challenges, market saturation, and required capital improvements. The company will work with affected employees to provide transfer opportunities or transition packages. Three other Natural Grocers locations in Tucson will remain operational at River Road, Broadway and Country Club, and Oracle and Orange Grove.

Positive

Strategic consolidation to enhance operating efficiencies in the Tucson market
Avoiding future capital improvement costs by closing underperforming location

Negative

Loss of revenue stream from store closure
Additional expenses for employee severance and transition packages
Market saturation issues in Tucson area indicating potential growth limitations

News Market Reaction – NGVC

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In the trading session that priced this news, NGVC declined 2.99%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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12/02/2024 - 09:30 PM

LAKEWOOD, Colo., Dec. 2, 2024 /PRNewswire/ -- Natural Grocers^® today announced plans to close one of its Tucson, AZ stores located at the corner of Broadway Boulevard and Kolb Road on December 11, 2024. Natural Grocers will begin store-wide closing sales on Tuesday, December 3, with discounts of 25% off items in the dairy, frozen, grocery and produce departments and 10% off everything else—including supplements, body care and beauty at the 7220 E Broadway Blvd. location. All sales will be final.

The Tucson – Broadway and Kolb store is one of 12 Natural Grocers locations in Arizona and one of four in the Tucson area. As part of its commitment to serving its customers efficiently, the Company regularly evaluates the performance and sustainability of its stores.

Kemper Isely, Natural Grocers Co-President stated, "With the pending expiration of the lease for this location, we made the strategic decision to close the Broadway and Kolb store to enhance operating efficiencies and store performance across the Tucson market. This decision was reached after careful consideration of the store's operational challenges impacting performance, saturation in the Tucson area, and capital improvements required for this location in the near future. Based on our market analysis, we believe this decision will help us serve the Tucson community more effectively and efficiently in the future."

He continued, "We are grateful for the loyalty and support of our customers in this area over the years. While this move supports the long-term strength of our business, our priority remains on working with our good4u^SM Crew members during this transition and continuing to serve the Tucson community through our other local stores."

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

NATURAL GROCERS' NEIGHBORING LOCATIONS
After the Broadway and Kolb location closes on December 11, 2024, Natural Grocers welcomes customers to shop at its nearby neighboring locations:

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 2024, the Company invested more than $15 million in incremental compensation and discretionary payments for Crew. Headquartered in the Union Square neighborhood of Lakewood, CO, Natural Grocers has 168 stores in 21 states. Visit www.naturalgrocers.com for more information and store locations.

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SOURCE Natural Grocers by Vitamin Cottage, Inc.

FAQ

When will Natural Grocers (NGVC) close its Broadway and Kolb store in Tucson?

The Natural Grocers store at Broadway and Kolb in Tucson will close on December 11, 2024.

What discounts is Natural Grocers (NGVC) offering during its Tucson store closing sale?

Starting December 3, 2024, the store is offering 25% off dairy, frozen, grocery, and produce items, and 10% off all other products including supplements, body care, and beauty items.

How many Natural Grocers stores will remain in Tucson after the Broadway and Kolb closure?

After the closure, three Natural Grocers locations will remain in Tucson: River Road, Broadway and Country Club, and Oracle and Orange Grove.