Friday, December 6th, 2019
In October of this year, United Natural Foods (UNFI) reported its plans to sell two of its banners: Cub Foods and Shoppers Food & Pharmacy. Recently, Deli Market News received a report that the company has gone through with the sale. 13 of its 43 Shoppers stores are on the table, with the deal expecting to close between mid-December and the end of February 2020.
“Today’s announcement reflects progress on our commitment to reduce UNFI’s retail footprint and marks another step toward transforming UNFI into North America’s premier food wholesaler,” said Steven L. Spinner, Chairman and Chief Executive Officer. “We believe that exiting the retail business will further accelerate our business transformation and allow us to more appropriately allocate resources toward long-term growth initiatives.”
According to its press release, UNFI will also close four additional Shoppers stores, which are expected to cease operations by the end of January 2020. The company made the decision to not renew the lease at three of these locations and the fourth is being cancelled pursuant to an agreement with the landlord. So far, the rest of the Shoppers stores will remain in operation while UNFI continues to look for buyers.
“We will continue to wind down our retail footprint in a strategic and thoughtful manner to achieve the goals previously outlined,” Spinner continued. “As we do this, we greatly appreciate the loyalty of our associates and the tremendous service they have provided to our customers.
As part of the transactions, two of the buyers will enter into long-term agreements for UNFI to serve as the primary supplier of their acquired Shoppers locations under different banners.
To see the press release in its entirety, click here. And keep reading Deli Market News for the latest in the retail landscape.