UNFI closes Wisconsin DC, shifts to automated Illinois facility

Consolidation targets automation gains

United Natural Foods, Inc. has closed its Racine, Wisconsin distribution center and transferred operations to its Joliet, Illinois facility, which is implementing full-case automation technology. The move, completed in June, represents the latest step in a multi-year distribution network reorganization, CEO Sandy Douglas announced on a September 8 earnings call.

President and COO Giorgio Tarditi told investors the consolidation will help UNFI serve Midwest customers and suppliers more effectively while generating operating efficiencies, though he cautioned that "any such move will likely have a little bit of growing pains."

The Joliet facility is in the early stages of deploying full-case automation, positioning it to handle the increased volume from the Wisconsin closure while leveraging technology to improve throughput.

Why it matters

UNFI's facility consolidation strategy illustrates how distributors are using automation investments to justify network rationalization. By concentrating volume at fewer, more technologically advanced sites, the company aims to offset labor costs and improve service metrics — a playbook other wholesale distributors may follow as automation technology matures and economic pressure to improve margins intensifies.

Broader network transformation underway

The Racine closure follows a pattern of consolidations UNFI executed between October 2024 and October 2025. The company closed distribution centers in North Dakota, Montana, Indiana, and Pennsylvania, shifting their operations to nearby facilities, according to Rajiv Sujan, senior vice president of network process optimization.

The network reorganization also includes expansion. UNFI opened a Manchester, Pennsylvania facility in September 2024 and a Sarasota, Florida distribution center in August 2025.

These moves support a three-year financial recovery plan launched in fiscal 2025 after two years of inconsistent performance.

Operational improvements beyond footprint

UNFI has implemented lean daily management practices at 44 distribution centers as of August 1, the end of fiscal 2026. Douglas credited the rollout with delivering a fourth consecutive quarter of year-over-year improvements in order fill rates, on-time deliveries, and warehouse throughput.

The company plans to launch a second phase called Lean 2.0, focused on strengthening daily programs and management problem-solving capabilities.

UNFI also completed the rollout of an artificial intelligence-powered supply chain and procurement planning platform across all distribution centers in its network during fiscal 2026.

For fiscal 2027, the company has earmarked $300 million in capital spending for automation, an ERP deployment, and other technology initiatives designed to simplify processes and provide faster operational insights, Tarditi said.

The details were first reported by Supply Chain Dive.