United Natural Foods, Inc. (UNFI) is preparing to close a distribution center in Fort Wayne, Indiana, this month as part of an ongoing effort by the grocery retailer and wholesaler to improve efficiency, a company spokesperson confirmed in a Thursday statement to Grocery Dive.
The closure will result in the loss of 157 operational and administrative positions, but UNFI plans to continue employing an unspecified number of drivers as part of “restructured transportation operations” in the city, according to the statement. The job cuts will take effect on Feb. 14, according to a Dec. 13 notice about the layoffs UNFI filed with the Indiana Department of Workforce Development.
UNFI will move customers and suppliers it serves from the Fort Wayne facility to “nearby, modernized distribution centers in our network,” the company said in the statement.
“Following this transition, our customers will gain access to a broader product assortment, including more fresh options, and our suppliers will be able to reach customers more efficiently,” the company said.
The facility’s closure comes as UNFI looks to squeeze costs out of its operations and boost its profitability. The company reported in December that it has seen supply chain efficiency grow for three quarters in a row. In addition UNFI’s adjusted earnings before interest, taxes, depreciation and amortization were up nearly 15% year over year during the company’s most recent quarter, which ended Nov. 2.
In January, UNFI said it was reorganizing its commercial wholesale business as part of its drive to become more profitable. As part of the restructuring, UNFI split its wholesale operations into two units, one focused on conventional grocery products and the other on natural, organic, specialty and fresh products.
Investors have signaled that they approve of how UNFI’s business has progressed over the past few quarters. The company’s share price is up by more than 85% over the past 12 months.
