Organic, natural grocery chains see Q1 sales jump 16% to 20% on pandemic shopping
Published: June 2, 2020
Category: Organic News, The Organic & Non-GMO Report Newsletter
Organic grocery outlets saw a spike in sales in the first quarter of 2020.
Colorado-based Natural Grocers saw a 17% increase in sales ending March 31, and a 152% jump in second quarter income to $9.7 million, up 20%. The chain operates 157 stores in 20 states; sales surges begun in late February and hit 40% in March.
The company credits “the significant growth in net sales and margin improvement as a result of the impact of the Covid-19 outbreak.” Daily sales growth is expected to increase 5% to 9%. Natural Grocers is planning to open seven new stores in 2020.
Phoenix-based Sprouts Farmers Market, with 344 stores in 23 states, reported first-quarter adjusted net income of $93 million, up 16 percent as consumers purchased supplies at the start of the Covid-19 lockdown. Net sales in the first quarter jumped by an estimated 9.6%.
The company doesn’t expect second quarter operating margins to sustain the same level of expansion of the first quarter, due to boosts in employee pay and benefits, and costs of implementing additional safety and cleansing protocols.
“The Covid-19 crisis has created a lack of visibility for the remainder of 2020 with many unknowns,” said CFO Denise Paulonis. “We remain uncertain as to when consumer behavior will return to normal or what may emerge as the ‘new normal.’ ”
Source: Sustainable Food News
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