UNFI - United Natural Gains on Strong E-Commerce Amid Setbacks | Benzinga
United Natural Foods, Inc. (NYSE: UNFI) demonstrates its resilience through strong dedication to digital innovation and improvements in its supply chain. The leading food provider is actively engaged in a comprehensive transformation journey centered around various strategic initiatives. However, UNFI is bearing the brunt of macroeconomic factors, including inflationary pressures.
Let's delve deeper.
Strength in E-commerce Business
United Natural's sales are being positively impacted by its strong presence in e-commerce, supported by expanded solutions offered across its Independents and Chains channels. These offerings include digital platforms tailored to meet customer needs. The company's value-added supplier program, UNFI Insights, has been a success. The launch of Community Marketplace, a digital B2B e-commerce solution aimed at emerging brands, further enhances distribution opportunities with customers.
Enhancing Supply-Chain
UNFI is actively enhancing its supply chain processes and management disciplines to drive growth. The company's efforts have led to significant reductions in shrinkage, contributing positively to both financial performance and operational efficiency. Notably, the improved wholesale margin in third-quarter fiscal 2024 reflects ongoing shrinkage improvements, approaching pre-COVID levels of approximately 30 basis points as a percentage of sales. It anticipates further opportunities to reduce shrinkage, thereby enhancing profitability while maintaining strong relationships with customers and suppliers.
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