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Natural Grocers posts strong Q2 2025 results: comp-store sales up 8.9 % and two new Texas stores fuel growth in health-focused grocery.
Table of Content
Natural Grocers reported a strong quarterly performance, achieving a two-year comparable-store sales increase of 16.4%. This growth was driven by strategic expansion through new store openings, targeted customer engagement marketing initiatives, and the implementation of values-oriented communication strategies. The company strengthened customer loyalty and attracted health-conscious consumers by emphasizing its unique product standards and leveraging the analytical capabilities of its {N}power loyalty program.
Q2 2025 Performance
Net Sales
$335.8 million +9.0%
Traffic and basket growth drove record revenue
Comparable-store sales
+8.9%
Two-year stack +16.4 %
Store growth
2 openings (Brownsville & Waco, TX)
Fleet now 169 stores in 21 states
Private Brand sales
8.6%
22 new SKUs launched
Loyalty Penetration
81% of net sales
2.5 million active members
Delivery / Pickup
2% of sales via Instacart
Strategic Initiatives
Customer-engagement Marketing
Natural Grocers intensified hyper-local digital campaigns, nutrition-education events and “Always Affordable” price messaging, driving a 5.9% increase in transaction count and keeping basket growth positive despite a promotional quarter. Industry‑wide, 63% of grocers boosted their digital promotions and communications in Q3 2024, according to Grocery Doppio’s State of Digital Grocery scorecard, and Natural Grocers is firmly in that cohort, leveraging richer digital touch‑points to broaden reach and deepen shopper relationships.
{N}power Rewards Loyalty
Individualised, click-and-load offers (1% rebate) and member-exclusive pricing on high-velocity staples such as free-range eggs and avocados pushed loyalty-penetrated sales to 81%, up from 78% a year ago. The richer data lake is feeding more precise offer targeting and higher redemption rates.
Store Additions and Remodels
Brownsville and Waco opened on-time and on-budget, each utilising the capital-light 15 k-sq-ft prototype. Management reiterated its FY25 plan for three to four openings and two to four relocations/remodels, and confirmed a pipeline capable of six to eight new units per year thereafter.
Key Highlights
During the quarter, Natural Grocers added two new Texas stores, expanding access to affordable, 100% organic produce and humanely raised proteins in markets that rank high for health-and-wellness adoption. Early traffic patterns mirror the chain average, underscoring the resonance of the brand’s strict ingredient standards, transparent sourcing and “good4u” nutrition-education platform with today’s increasingly health conscious consumer.
Future Outlook
Guidance now calls for comparable-store sales growth of 6.5 – 7.5 percent in fiscal 2025, up from the earlier 5 – 7 percent range, reflecting sustained traffic gains, larger baskets, and strong demand in health-oriented categories. The plan also includes three to four new store openings and two to four relocations or remodels this year, with a longer-term rhythm of six to eight new units annually. Each project must clear a disciplined hurdle of under $10 million in build-plus-inventory cost and a payback period of fewer than four years, ensuring that expansion remains capital-light and returns-focused as the footprint grows.
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