Dive Brief:
- Natural Grocers’ third-quarter earnings, released Thursday, showed the specialty grocer remains a resilient player in a harsh macroeconomic environment.
- Natural Grocers’ net sales increased 1.8% year-over-year to $334.7 million during its fiscal Q3 while comparable-store sales accelerated 1.2%, a higher rate than the 0.5% increase in Q2, Kemper Isely, the grocer’s chairman, director and co-president, told investors.
- Isely said the specialty retailer remains “the value leader” in the natural and organic grocery space largely because of its ongoing Even More Affordable Prices campaign.
Dive Insight:
Consumers’ ongoing prioritization of health and wellness is a durable trend leading to long-term growth for Natural Grocers, according to Isely.
The specialty grocer introduced its “Even More Affordable Prices” campaign in October 2025, running discounts on over 500 natural and organic staples through the end of the year. Today, the campaign is still in effect on over 1,000 items, with discounts available to members of its {N}power loyalty program.
{N}power is the company’s primary avenue for optimizing promotions, strengthening customer engagement and building loyalty, Isley said, adding that sales engagement with {N}power members “outperformed in key metrics, generating growth in sales, traffic and basket sizes during the quarter.”
Natural Grocers’ low-price campaign and loyalty program also intertwine with the grocer’s ongoing private label work. The company’s affordable pricing strategy features a rotation of everyday staples, including items from Natural Grocers’ store brand. Private label penetration increased 110 basis points year-over-year to account for 9.7% of total sales, Chief Financial Officer Richard Hallé said during the earnings call.
E-commerce and Natural Grocers’ loyalty program will soon become more closely linked. In Q3, the specialty grocer launched a new partnership with DoorDash to expand delivery access across its entire footprint and, come later this month, Natural Grocers will integrate {N}power into DoorDash to offer additional savings, Isely said.
Natural Grocers’ store growth strategy is also proving effective. During its third quarter, the grocer opened three new stores, including its first in Wisconsin, as well as relocated a storefront, Isely told investors. Natural Grocers has one store slated to open in Q4.
“All six new store openings this year — and two from last year for that matter — rank among our strongest opening day sales performances,” according to Isely. “We see significant opportunities to expand our store footprint and remain focused on delivering annual unit growth of 4% to 5% for the foreseeable future.”
Natural Grocers’ outlook for 2026 includes opening six to seven stores, down from its prior outlook of six to eight, and relocating or remodeling two existing stores, also down from its original goal of two to three, Hallé said. He added the company’s outlook for comparable-store sales growth has narrowed and now expects to land between 1.5% and 2%.
