Core Insights - The natural foods sector is the primary growth driver for United Natural Foods Inc. (UNFI), compensating for weak performance in conventional grocery sales during Q1 2026 [1][2] Financial Performance - Net sales in the natural and organic segment increased by 10.5% year over year, exceeding $4.2 billion, while conventional sales fell by 11.7% [2] - Retail sales declined by 5.5%, and same-store sales decreased by 3%, attributed to store closures aimed at strengthening the network and improving cash flow [2] - Consolidated net sales growth was reduced by approximately 3% due to the closure of a distribution center in Allentown, PA [3] - The company maintains an annual sales outlook between $31.6 billion and $32 billion, with net income potentially reaching $50 million [4] Strategic Initiatives - UNFI is focusing on enhancing its private-label business, with the recent hiring of Pamela Ofri as chief brands officer to drive growth in this area [5] - The implementation of Lean Daily Management in 34 out of 49 distribution centers aims to improve operational efficiency and reduce waste [6] - The deployment of the AI-powered supply-chain management platform, RELEX, in about half of UNFI's distribution centers is expected to enhance fill rates and inventory effectiveness [7] Customer Engagement - Customer appeal rates have improved and are now above the levels seen in 2024 and 2025, indicating a positive trend in customer engagement [8] - Fill rates are also on the rise, contributing to better service delivery [8]

Group 1 - Shareholders of SpartanNash voted to approve the merger with C&S Wholesale Grocers [2] - Approximately 82.1% of the outstanding shares of common stock voted in favor of the merger agreement [2]