UNFI’s natural sales rise as conventional segment declines

United Natural Foods, Inc. (UNFI) reported a decline in net sales of $7.6 billion in the fourth quarter of fiscal 2026, marking a year-over-year decrease of slightly under 1%. However, UNFI's natural segment saw a sales increase of over 6%, while conventional sales fell by more than 8%. Despite the decline in net sales, net income for the quarter stood at $35 million, up from a loss in the same period a year ago.

Adjusted EBITDA rose by nearly half. CEO Sandy Douglas emphasized that UNFI is focused on helping differentiated value proposition retailers, including natural and organic stores, smaller chains, and independents, to enhance their shopping experiences and compete with mass and discount retailers. During the period, UNFI added more than 130 private label products to its offerings, reflecting the trend of many retailers relying on store brands to stand out.

Douglas noted that while natural product sales grew, conventional products remain crucial to UNFI's distribution business. The company's retail operations experienced a decline of about 8% in fiscal 2026 and Q4. UNFI is utilizing technology, including artificial intelligence, to improve inventory management in its retail operations, seeing automation as a significant opportunity for improvement.

The company's turnaround strategy is still in its early stages, but UNFI has seen sequential improvements in its top and bottom-line results. Douglas highlighted that UNFI is leveraging its own retail experience to better understand and assist other grocers in creating winning strategies for value, assortment, and unique experiences.