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The company is realigning that part of its organization into two product-centered divisions as part of its multi-year plan to fuel profitability.
The two new wholesale divisions will each have dedicated sales teams and will receive support from experts in merchandising, operations, procurement and supplier services, according to the press release. However, a company spokesperson said the wholesale business change will result in an unspecified number of role shifts and eliminations.
The company noted that its supply chain, professional and digital services, and private brands capabilities will work across the two divisions to support the sales teams in building customized programs for customers’ and supplier’s growth initiatives.
“By empowering our commercial teams to provide a more customized product and service-centered experience, we intend to help our customers and suppliers differentiate, compete, and grow profitably through a more responsive, efficient, and effective operating model,” UNFI CEO Sandy Douglas said in a statement.
During its most recent earnings report, UNFI recorded a year-over-yearnet sales increase of 4% and a net loss of $21 million — down from the $39 million loss during the same period a year ago.
During the company’s first quarter, its wholesale business saw “changes in business mix at both the customer and the product level, lower procurement gains, and ongoing strategic commercial investments,” UNFI President and CFO Matteo Tarditi, whostepped into the roles in April, told investors in December.
The changes to its wholesale business follow UNFI’s push to strengthen its business with retail customers and suppliers alongside efforts to streamline its operations as it looks to improve its financial performance. Last year,UNFI launched a retail media network in partnership with Swiftly andexpanded the products and services showcased at its selling shows.
At the end of last year, the grocery wholesaler confirmed plans tolay off 121 employees in January at its office in Lincoln, Rhode Island, and relocate its corporate headquarters from Lincoln to Providence, Rhode Island. The company spokesperson said this layoff was not connected to the wholesale business changes.
In mid-2023, UNFIreduced its operating regions from four to three and cut 150 jobs, mainly in management and supervisory roles.
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The Northeastern chain’s value proposition and pricing “are simply not strong enough,” Ahold Delhaize USA CEO JJ Fleeman told investors in May.
The specialty grocer’s store shelves in the Washington, D.C., area are coated in yellow discount tags signaling the retailer may be trying to appear more price-friendly to shoppers.
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