Natural Grocers By Vitamin Cottage (NYSE:NGVC) ("Natural Grocers") had a rough time of it in 2014 as competition, particularly from Trader Joe's,
had a very real impact on same-store growth and investors' previously
boundless enthusiasm for natural/organic finally found some boundaries.
The underlying story at Natural Grocers
hasn't changed all that much, though, and the company has still
penetrated less than 10% of its theoretical footprint. Investors can
rightly question whether shoppers will continue to flock to stores like
Natural Grocers, Whole Foods (NASDAQ:WFM), and Sprouts (NASDAQ:SFM),
particularly as conventional grocery stores/supermarkets increase their
organic/natural product selections, but the same can be said for many
aspirational/luxury goods (nobody *needs* a Coach bag or Starbucks
latte). If Natural Grocers can continue to create a shopping experience
that resonates with its core target market, I don't see the shares as
unreasonably expensive.
Continue here for more:
Natural Grocers' Comps Recovering, But Can It Last?
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