Dive Brief:
- United Natural Foods, Inc. plans to stop operating four supermarkets under its Shoppers banner in Maryland over the next several weeks, the grocery company said Tuesday in an emailed statement.
- The stores, in College Park, Laurel, Germantown and Capitol Heights, Maryland, are set to close by Nov. 8.
- UNFI’s disclosure that it will shutter the stores follows the recent closure of four other Shoppers locations in Maryland.
Dive Insight:
The decision by UNFI to close eight Shoppers stores this fall comes as the grocery retailer and wholesaler presses ahead with efforts to strengthen its retail operations, which have recently posted slow sales growth.
“As we work to strengthen our retail business for the future, we’re taking steps to optimize our footprint where necessary while continuing to enhance the customer experience in our remaining stores,” a UNFI spokesperson said in a statement. The company did not provide additional details about why it elected to close the stores.
UNFI said it would support employees affected by the upcoming closures. “We fully support their interest in moving to other Shoppers locations where openings are available,” the spokesperson said.
Following the closures, Shoppers will continue to operate 13 stores in the Washington, D.C, area, according to a spokesperson. UNFI also operates about 50 supermarkets in Minnesota under the Cub Foods banner as well as around 20 Cub Wine and Spirit and Cub Liquor stores.
UNFI’s retail operations have delivered sluggish results over the past few quarters. The unit’s 1% sales increase during the company’s third quarter, which ended May 3, represented the first time UNFI’s retail operations have delivered positive sales growth since the fourth quarter of fiscal 2024. During its most recent quarter, the company’s retail segment posted a nearly 9% sales loss.
In August, UNFI brought on David Best as president and CEO of retail. Best, former president and chief operating officer of Midwestern supermarket operator Coborn’s Inc., replaced Andre Persaud, who departed the previous month after less than two years leading UNFI’s retail division.
