United Natural Foods, Inc. (UNFI) confirmed plans to permanently close its distribution center in Sturtevant, Racine County, Wisconsin, eliminating 443 jobs as the wholesale grocery giant pushes ahead with an aggressive network consolidation strategy.
The UNFI distribution center closure marks the latest in a string of facility shutdowns reshaping the company’s national supply chain footprint.
According to a WARN Act notice filed March 16, 2026, with the Wisconsin Department of Workforce Development, employee separations will begin during the 14-day window starting June 20, 2026, and continue through August 1, 2026. The reductions are permanent, and affected workers have no bumping rights under the company’s policy.
From Racine to Joliet: Automation Takes Over
UNFI will shift the Sturtevant facility’s volume to its Joliet, Illinois, distribution center, which the company plans to upgrade with full-case automation and an advanced warehouse management system.
“The modern technology investments we’re making in Joliet are expected to increase the DC’s capacity and improve service to our partners over time,” UNFI said in a statement.
The move signals a clear strategic bet: invest heavily in fewer, smarter facilities rather than maintain a broader network of older ones. For Racine County, however, the math is stark: 443 jobs gone, spanning roles from selectors and lift operators to dispatchers, drivers, and warehouse supervisors.
Who Gets Cut: A Workforce Dismantled
The WARN notice lays out the scope of the damage in detail. Selectors represent the largest single group affected, with 109 positions eliminated. Lift operators follow with 82 cuts, while 49 delivery drivers and 40 flex selectors also face permanent separation. Twenty-nine domicile drivers, 25 loaders, and 15 freezer selectors round out the warehouse-level losses.
Management and support roles are also facing cuts, including operations managers, transportation supervisors, inventory control staff, and warehouse coordinators. Some affected employees are members of the General Teamsters Local Union No. 200, which received formal notice of the closure.
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A Pattern of Closures Sweeping the Network
The Sturtevant shutdown is far from an isolated decision. UNFI has spent the past year systematically trimming its distribution footprint across multiple regions.
During fiscal 2025, the company consolidated two Central region distribution centers and then announced and completed the closure of a third. On the East Coast, UNFI reached a mutual agreement to end its supply relationship with Key Food, triggering the closure of its Allentown, Pennsylvania, facility, a move that affected 716 employees and ended roughly $1 billion in annual sales.
During UNFI’s FQ2 2026 earnings call on March 10, CEO Sandy Douglas confirmed the strategy is working financially, but acknowledged the trade-offs. “These efforts benefited our profitability and free cash flow and have temporarily negatively impacted our sales growth by nearly 500 basis points,” Douglas said, citing the Allentown consolidation as the primary driver.
Strong Earnings Mask the Human Cost
The financial results tell one story. UNFI reported adjusted EBITDA growth of more than 23% to $179 million in its second fiscal quarter, while adjusted EPS came in at $0.62, well above the analyst consensus of $0.51.
The company also raised its full-year adjusted EBITDA outlook to a range of $680 million to $710 million and boosted its free cash flow forecast to approximately $330 million.
CFO Matteo Tarditi credited network optimization as a central driver of those gains, noting that distribution center productivity rose more than 6% and that operating expenses dropped nearly 6% compared to the prior year.
Yet behind those numbers lies a mounting toll on jobs. Across the Allentown and Sturtevant closures alone, UNFI has displaced more than 1,150 workers since late 2025.
Building for the Future Elsewhere
Even as it sheds facilities, UNFI continues to invest in new capacity in other markets. The company opened a 1.3-million-square-foot distribution center in Manchester, Pennsylvania, in early fiscal 2025 and implemented full-case automation there in the third quarter. A new 1.0-million-square-foot facility in Sarasota, Florida, backed by a $118 million lease commitment, is on track to open in the first half of fiscal 2026.
UNFI also continues to roll out an AI-powered supply chain planning platform across its network, with implementation expected to be completed by fiscal year-end. Douglas called the platform a key tool for improving fill rates, customer service, and inventory management.
For the 443 employees facing displacement in Sturtevant, UNFI says it is “working to support them through the transition.” The company has committed to providing at least 60 days’ advance notice to affected workers, with notifications delivered by email, in person, or via overnight delivery.