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Dive Brief:

• Natural Grocers announced Wednesday that it plans to close its location in downtown Denver on Oct. 31 in response to security and theft concerns.
• The specialty retailer said it decided to close the store, located at 1433 Washington St., after evaluating “operating challenges” that have affected the location’s performance.
• The announcement follows Natural Grocers’ disclosure in May 2023 that it would close two underperforming stores in the Dallas-Fort Worth region in a bid to improve productivity.

Dive Insight:

Natural Grocers indicated that it grappled with theft and safety problems at the Denver store for a significant period before concluding that its best option was to stop running the location.

“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,” Kemper Isely, co-president of the chain, said in a statement.

The grocer noted that it runs six locations within the vicinity of the store that is closing, adding that it will try to reassign employees at the Washington Street location to other stores. Natural Grocers said it would provide a transition package that includes health benefits and severance pay to workers who lose their jobs over the closure, without providing further details about what those workers will receive.

Natural Grocers also said it will offer shoppers at the closing store a 10% discount on all products starting on Friday. The retailer currently operates 169 stores in 21 states, including 46 in Colorado, its home state. The chain posted sales of about $309 million in its most recent quarter, a year-over-year increase of nearly 10%.

The closure comes as retailers have tried a variety of measures to combat theft and safety issues in their stores. Grocers including Kroger, Safeway and Giant Food have turned to receipt checks at some stores to keep people from walking out without paying for goods, and Giant Food has also imposed limits on the size and type of bags shoppers may bring into certain locations. In September, Target announced it would close nine stores in four states in response to levels of theft and crime that it said were putting the safety of employees and shoppers at risk.