Distribution consolidating products


01-Jun-2020 18:39

UNFI has legacy strength in natural and organic products, while Supervalu has its roots in conventional grocery and fresh protein distribution.

Both have made acquisitions in recent years to bolster their offerings.

It's been a rough 90 days since United Natural Foods took over Supervalu.

distribution consolidating products-54

rudating story

The company currently operates 60 DCs — 33 of which are legacy UNFI, 27 of which belong to Supervalu.Doing so will eliminate duplicate processes, while still allowing for high-speed fulfillment, company officials said.At the same time, UNFI aims to optimize its distribution network by linking facilities that handle fast-moving goods with larger ones that handle slower-moving products.The earnings outlook for this year came in higher than analysts expected, sending UNFI's stock price up nearly 30% yesterday.

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Investor optimism may be short-lived, however, with the company's stock price falling more than 16% by Thursday afternoon.However, with this opportunity come numerous challenges, officials conceded.



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