UNFI completes Racine-to-Joliet move in June, advancing Midwest consolidation
UNFI completed the transfer of its Racine, Wisconsin, distribution center operations to its Joliet, Illinois, facility in June, according to CEO Sandy Douglas. The Joliet site is in the early stages of deploying full-case automation, which the company says will improve service to Midwest customers and generate operating efficiencies.
Beyond the Racine‑to‑Joliet shift, UNFI has consolidated centers in North Dakota, Montana, Indiana and Pennsylvania into nearby facilities between October 2024 and October 2025, and opened a new distribution center in Manchester, Pennsylvania, in September 2024 and another in Sarasota, Florida, in August 2025. By August 1, the end of fiscal 2026, the company had rolled out lean daily management to 44 distribution centers, a program that has delivered four straight quarters of year‑over‑year improvements in order fill rates, on‑time deliveries and warehouse throughput. In the same fiscal year, UNFI completed the deployment of its artificial‑intelligence‑powered supply chain and procurement planning platform across all distribution centers in the network. Looking ahead, the firm expects to spend $300 million in fiscal 2027 on automation, an ERP upgrade and other technology initiatives, while also planning a second phase of lean management, called Lean 2.0, focused on strengthening daily programs and management problem‑solving.
“While it is still early and we have more work to do, we expect that this move will help us more effectively serve customers and suppliers in the Midwest over time while generating operating efficiencies for UNFI,” President and COO Giorgio Tarditi said.
UNFI’s latest consolidation advances a distribution network reorganization launched in fiscal 2025 alongside a three‑year financial recovery plan after two years of unsteady results. The company also opened a facility in Manchester, Pennsylvania, in September 2024 and a Sarasota, Florida, distribution center in August 2025.
What we know
Completed in June, the move consolidates operations at a facility in the early stages of implementing full-case automation, executives said.
United Natural Foods, Inc. has moved operations from its Racine, Wisconsin, distribution center to its nearby Joliet, Illinois, facility, CEO Sandy Douglas said on a Sept. 8 earnings call.
The company also consolidated centers in North Dakota, Montana, Indiana and Pennsylvania into nearby facilities between October 2024 and October 2025, Rajiv Sujan, SVP of network process optimization, said in an email to Supply Chain Dive.
By Aug. 1, the end of fiscal 2026, the company had completed the initial rollout of lean daily management at 44 distribution centers, Douglas said.
UNFI expects to further bolster its distribution system in fiscal 2027 through $300 million in capital spending, including investments in automation, an ERP deployment and other technology initiatives designed to simplify processes and provide faster, better operational insights, according to Tarditi.