PROVIDENCE, R.I. — United Natural Foods, Inc. (UNFI) is accelerating investments in artificial intelligence, automation and digital infrastructure across its distribution network, building on supply chain improvements and a return to profitability in fiscal 2026.
The company plans to invest approximately $300 million in fiscal 2027 in capital and cloud implementation projects, including targeted automation initiatives, enterprise resource planning (ERP) deployment and other technology enhancements designed to strengthen operational performance across its nationwide distribution network.
The planned investments follow a year of significant progress in UNFI’s supply chain modernization efforts. During fiscal 2026, the company completed the rollout of its AI-powered supply chain and procurement planning platform across all distribution centers, expanded automation capabilities at its Joliet, Ill., distribution facility and deployed lean daily management practices at 44 distribution centers.
“We also completed the rollout of our AI-powered supply chain and procurement planning platform to all DCs in our network,” said Sandy Douglas, UNFI chief executive officer, during the company’s fourth-quarter earnings call. “The platform is helping to steadily improve fill rates and inventory management.”
Douglas said the technology and operational investments are key components of UNFI’s strategy to improve efficiency, strengthen service levels and drive long-term performance improvements.
The technology investments come as UNFI reported substantially improved profitability in its fourth quarter, despite a modest decline in sales.
Net sales for the quarter totaled $7.64 billion, compared with $7.70 billion in the prior-year period. The company reported net income of $35 million, compared with a net loss of $87 million in the fourth quarter of fiscal 2025.
UNFI said its continued focus on automation, AI-enabled planning tools and operational excellence initiatives is expected to support ongoing improvements in inventory management, fulfillment performance and overall supply chain efficiency.
