Dive Brief:
- United Natural Foods, Inc. intends to close its distribution center in Sturtevant, Wisconsin, later this year as part of the grocery distributor’s ongoing drive to optimize its network and serve customers more efficiently, according to a company statement.
- The move, which will involve the elimination of 443 jobs, is connected with an effort by UNFI to move service from the Milwaukee-area facility to a distribution center it runs in the Chicago suburb of Joliet, Illinois, UNFI said. That facility is undergoing expansion to support long-term growth in the greater Chicago market, according to the statement.
- UNFI noted that it is making technological improvements to the Joliet distribution center that include the installation of full-case automation and an advanced warehouse management system. The upgrades are intended to increase the facility’s capacity and improve service to UNFI’s partners.
Dive Insight:
UNFI said in a notice to state and local officials in Wisconsin that it plans to begin eliminating jobs at the Sturtevant facility in late June and complete the job cuts by mid-August. The distribution center began operating in 2014, Milwaukee-area news outlet BizTimes reported.
UNFI has been incorporating automation into its facilities as it looks to improve its financial results. Last year, UNFI opened a new automated distribution center in Sarasota, Florida, that it said would allow it to service grocers better while also reducing operating costs and improving conditions for workers. The distributor has also added automation to other facilities it runs in locations such as Carlisle and Manchester, Pennsylvania, and Centralia, Washington.
In February 2025, UNFI closed a distribution center in Fort Wayne, Indiana, as part of what it described as a move to serve customers from “nearby, modernized distribution centers in our network.”
UNFI has been striving to boost its performance following forecasting issues several years ago that drove down its profits and shocked investors. Earlier this month, the company said that net sales in its latest quarter were down by more than 2% but nevertheless demonstrated that it has made progress in creating value because profits were up and fresh cash flow was ahead of expectations.
