UNFI outlines growth plan, sets new financial targets

Core Insights - United Natural Foods Inc. (UNFI) has unveiled an expanded multiyear strategy aimed at enhancing profitability and solidifying its position in a $90 billion market [1][2] Strategic Focus - The strategy is designed to foster shared growth among customers, suppliers, employees, and shareholders, emphasizing improved service levels, reduced operating costs, and increased returns [2] - UNFI's new financial targets for fiscal years 2025 through 2028 include low single-digit average annual net sales growth, low double-digit average annual growth in adjusted EBITDA, and approximately $300 million in annual free cash flow [3] Capability-Building Initiatives - Customer Stewardship: The company is restructuring its commercial organization to better align with individual customer strategies, providing tailored product and service recommendations [4] - Merchandising and Supplier Support: UNFI is enhancing its merchandising capabilities to offer competitive pricing and broaden product assortments, while simplifying processes for suppliers, especially for emerging brands [5] - Professional and Digital Services: Plans to expand professional and digital services aim to help retailers reduce costs and improve efficiency, with a focus on increasing the adoption of digital offerings [6] - Private Brands: The company sees growth opportunities in private-label products, which now account for over 20% of grocery sales nationwide [7] - Technology and Innovation: UNFI is investing in technology for real-time insights and operational simplification, including the implementation of Relex and Samsara's Connected Operations platform [8] - Next-Generation Supply Chain: Supply chain improvements are central to the long-term plan, with enhancements in fill rates, on-time delivery, and throughput, alongside the implementation of Lean Daily Management [9] - Productivity Efforts: UNFI continues to reduce SG&A expenses and eliminate waste through initiatives led by its Value Delivery Office, with expectations for significant efficiency gains [10]