SCHAUMBERG, Ill.—Natural retail supermarkets are continuing to experience strong consumer loyalty and sales momentum in the face of a tough economy, according to new research from SPINS. The 800+ “natural retailers” range from independent retailers to larger regional chains that generate the majority of their sales from natural and organic products.
In its report, SPINS noted natural retailers are helping to foster growth and innovation in the nutrition and organic markets, helping elevate product standards. Sales figures for the 12 weeks ended Oct. 4, 2008, showed growth rates for natural and organic products at natural retailers (10 percent) were triple those of conventional retailers (3.2 percent). Strictly looking at products with more than 70 percent organic content, natural retailers showed a 13.4 percent sales improvement versus prior year period over those 12 weeks compared to conventional food retailers with 4.9 percent growth. Additionally, natural retailers are slightly more insulated from price inflation than conventional retailers, with shoppers allowing more base price elasticity.
It noted: “The success of the natural channel can be attributed to its lifestyle commitment and dedication which further cements its relationship with natural product consumers. Consumers recognize that natural retailers are better aligned with their philosophies and are fully committed to natural and organic products. Natural retailers have high standards for and extensive knowledge of [natural and organic products], providing their consumers with confidence in the superior quality and authenticity of the items they sell.”