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'Absolutely devastated': Customers, businesses react to closure of Natural Grocers in Denver's Capitol Hill

The grocery store chain said the decision to close the 1433 Washington Street location came after "careful consideration of the operating challenges, including retail theft and safety issues."
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DENVER — Customers and nearby businesses on Thursday shared mixed reactions to Natural Grocers' decision to close its location in Denver's Capitol Hill neighborhood.

The Colorado-based grocery store chain said the decision to close the 1433 Washington Street location came after "careful consideration of the operating challenges, including retail theft and safety issues impacting the store's performance."

According to the Denver Police Department's Crime Map, there were 237 reported crimes in the Capitol Hill neighborhood in September, including 12 burglaries and 9 robberies. A reported larceny occurred at the Natural Grocers around 10:30 a.m. on Sept. 27.

"We have been actively working to address the theft and safety issues impacting our store at Colfax and Washington for some time. Despite our investment in security and loss prevention strategies over the years, these factors have continued to challenge our ability to operate our store safely and sustainably, and we have made the difficult decision to close our doors at this location," said Kemper Isely, co-president of Natural Grocers, in a statement. "This was not an easy decision. We are grateful to our Crew members who have worked to provide world-class customer service in challenging circumstances and will partner with them to identify other opportunities at Natural Grocers. We remain committed to serving the Downtown Denver area, including our customers in the City Park West, Capitol Hill, Baker and Cherry Creek areas, and believe that our neighboring stores will continue to provide these communities the world-class customer service, quality and affordability for which Natural Grocers is known."

The store is set to close on Oct. 31. Beginning Friday, the location will offer a 10% discount on everything. All sales will be final.

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Neighbors in the area on Thursday told Denver7 the store's closure is a huge loss for the community.

"I was absolutely devastated," said neighbor Megan Creedan, who lives a half-block away from the store. "It's so convenient, and the idea of not having food that close by and fresh food for the neighborhood is terrifying, truly."

Creedan said many in the area, including herself, rely on this store for groceries each week.

"It's so sad. I mean, so many people around here, including myself, we don't have vehicles, so we really rely on what is in walking distance," she said.

Chris Donato, who opened his restaurant, Champagne Tiger, five weeks ago, called the closure "disappointing."

"As a restaurant, we love having a grocery store across the street. When we run out of one thing or another, it can be very helpful to pop by," he said.

Donato said he's excited to be a part of the Colfax community despite the challenges the grocery store and other nearby businesses have faced.

"I think people that don't spend time on Colfax might think it's one thing, but if you take some time and come down to be on Colfax and enjoy it, I think you might think another thing," he said.

Donato hopes another grocery store will be able to move into the area soon.

"It's an essential part of the neighborhood, so it will be missed. But I'm really hopeful that something will come in very quickly to take its place," he said.

Impacted employees will be able to transfer to other stores, according to Natural Grocers. The company said employees who are unable to transfer will be offered a "transition package," which includes severance pay and health benefits.

Natural Grocers operates 46 locations in Colorado. The company invited impacted customers to visit its nearby locations:

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The closest grocery store to the soon-to-be-closed Natural Grocers is the Safeway location at 757 East 20th Avenue — one of several stores involved in the proposed merger between Kroger and Albertsons.

At the center of the merger case is the concept of competition. Kroger attorneys argue shoppers have plenty of options, so even if the two grocery chains merged, there wouldn't be a monopoly.

"You've heard a remarkable number this morning, $500 million in purported injury to the citizens of Colorado. The way you get to that number is by ignoring the fact that Amazon is competing for grocery dollars, that Costco and Whole Foods and Natural Grocers and Sprouts and Trader Joe's and all the others. You have to ignore all of those," said a Kroger attorney during opening arguments.

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A map of big box grocery stores in the Denver area.
Red: King Soopers
Blue: Safeway
Green: Whole Foods, Natural Grocers, Sprouts, Trader Joe's, Target Grocery, Walmart Neighborhood Market

The Colorado Attorney General's Office, which filed a lawsuit to stop the merger, argues it's not fair to assume everyone who shops at King Soopers or Safeway would be able to shop on the same budget as stores like Whole Foods, Trader Joe's, club stores or supercenters.

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King Soopers (red) and Safeway (blue) locations in Denver

As part of the merger, the companies would sell 91 stores across the state — including around 10 in Denver — to the company C&S to be run independently under the Safeway banner.

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Locations of Safeways that would be sold to C&S if the Kroger/Albertsons merger moves forward

"This history shows that grocery divestitures have a high risk of failure, leading to store closures, lost jobs and higher market concentration, all harming consumers," said an attorney with the AG's office in court.

Those are concerns that could impact customers of the impacted Natural Grocers if the nearby Safeway ends up shuttering under the new ownership. C&S maintains it is ready to successfully run all of the stores it would acquire if the merger moves forward.


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