UNFI - Natural Grocers Seeing Stronger Customer Loyalty Better Margins

• Natural Grocers has continued to see strong comp-store sales growth, as customers double down on familiar patterns during the pandemic.
• Gross margins have been stronger than I expected, helped by lower occupancy and shrinkage costs, but also further data-driven refinements in the pricing and promotional strategy.
• New store growth is still restrained, but I believe double-digit store openings could be possible in 2023 and beyond.
• With a more refined promotion and price strategy, healthy brand identity, and a loyal core shopper base, I believe Natural Grocers could hit $20 in the next six to 12 months.

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