Business operations at UNFI have reverted to usual following a cyber attack.
In the ever-evolving world of food retail, two major players, Walmart and United Natural Foods Inc. (UNFI), are making significant strides.
Walmart is equipping its store associates with AI-powered tools, enhancing task management and real-time translation capabilities. These advancements aim to streamline operations and improve customer service.
Meanwhile, UNFI, ranked No. 20 on Progressive Grocer's 2025 list of top food and consumables retailers in North America, is focusing on strengthening its cybersecurity measures. The company has been proactive in adopting a comprehensive, multi-layered approach to protect sensitive data. Key measures include risk-based security management, continuous monitoring and improvement, multi-factor authentication, securing Point-of-Sale systems, employee security awareness training, managed detection and response services, limiting user access, regular data backups, secure network configurations, and robust disaster recovery planning.
UNFI's electronic ordering and invoicing systems are now back online, allowing for more normalized product delivery to grocery stores. However, the company has experienced reduced sales volume and increased operational costs since the cyberattack. UNFI expects to incur direct expenses related to the investigation and remediation of the incident, and these costs may extend into its 2026 fiscal year.
The company, one of the largest publicly traded wholesale distributors of health and specialty food in North America, has been working diligently to restore its core systems used by retail customers and suppliers for business. Notably, UNFI entered into an eight-year extension agreement last year with Whole Foods to serve as its primary distributor.
UNFI's net sales in the most recent quarter ended May 3 increased by 7.5% to $8.1 billion, primarily driven by a 4% increase in wholesale unit volumes. The company operates more than 50 distribution centers and delivers health and specialty food to over 30,000 locations across the United States and Canada.
On the other hand, Walmart continues to climb the ranks, leveraging technology to enhance its retail operations. The Providence, R.I.-based company, which did not experience a cyberattack, is well-positioned to maintain its competitive edge in the industry.
Meanwhile, at PG's GroceryTech event, two large retailers, Albertsons and Dollar General, are discussing in-store and out-of-store retail media. As the retail landscape continues to evolve, these discussions underscore the importance of innovation and adaptability in the food retail sector.
In a separate development, Amazon CEO Andy Jassy shared a message with employees stating that AI will reduce its corporate workforce. Amazon, known for its swift delivery services, is now offering free fulfillment tours to the public, providing a behind-the-scenes look at the technology, people, and processes that make its speedy delivery possible.
UNFI, in response to the cyberattack, has taken certain systems offline as part of its incident response plan and holds cybersecurity insurance for the information breach. The company is currently receiving orders and delivering products to Whole Foods Market locations across North America.
As both Walmart and UNFI navigate these challenges and opportunities, they continue to shape the future of food retail, leveraging technology, innovation, and robust cybersecurity measures to meet the needs of their customers.
- In the realm of business and technology, Walmart is excelling through the use of AI-powered tools to optimize task management and real-time translation, reinforcing its competitive edge in the food retail industry.
- Simultaneously, UNFI is prioritizing cybersecurity, implementing a multi-layered approach that includes risk management, continuous monitoring, and employee training, to safeguard sensitive data in the face of ongoing digital threats.
