2023 Natural Grocers Environmental, Social, and Governance Report

Social

Affordability Always Affordable SM Prices is one of our Five Founding Principles. We believe a healthy and balanced lifestyle should be achievable for everyone. To this end, we are dedicated to providing affordable pricing on the best natural and organic products available. PRICING STRATEGY: We have an Always Affordable Price designation on almost all products, while also providing special sale pricing on hundreds of additional items. We believe our pricing strategy enables our customers to shop our stores on a regular basis for their groceries, dietary supplements, and household essentials. MEAL DEALS: Each month we feature promotions and recipes that highlight a variety of affordable and nutritious family meals. ACCOUNTABILITY: Periodically we conduct studies to compare the pricing of core items to those of our primary competitors to ensure that we are true to our commitments.

COST EFFICIENCIES: As we continue to expand our store base, we believe there are opportunities for increased leverage in fixed costs, such as administrative expenses, as well as increased economies of scale in sourcing products. We strive to keep our product and operating costs low, which allows us to continue to offer attractive pricing for our customers.

We believe that everyone deserves access to fresh, organic produce, healthy groceries, and trusted dietary supplements. We also believe that free Nutrition Education empowers our communities and Crew members to improve their well-being. Our smaller format store model successfully serves urban, suburban, and rural communities, including communities identified by the USDA Economic Research Service as having low income and low access. We offer a wide variety of natural, organic and lifestyle-specific products, at affordable prices, to which many communities we serve would not have local access otherwise.

Food Access

22

NATURAL GROCERS ® | ESG REPORT