United Natural Foods Inc. (UNFI) is stepping up its use of artificial intelligence (AI) and digital services as it works to improve supply chain operations and help grocery customers run their businesses more efficiently.

For the 13 weeks ending Jan. 31, UNFI reported net sales of $7.947 billion. That’s down $211 million, or 2.6%, from $8.158 billion in UNFI’s Q2 a year earlier. Net income was $20 million, compared with a net loss of $3 million in the prior-year quarter.

For the first half of fiscal 2026, sales totaled $15.787 billion, down $242 million, or 1.5%, from $16.029 billion a year earlier. Net income was $16 million, compared with a net loss of $24 million in the prior-year period.

On its recent Q2 earnings call, UNFI said it is expanding RELEX, an AI-based supply chain planning platform, across its distribution network. CEO Sandy Douglas said about another dozen distribution centers were expected to go live the following week, with the full rollout on track to be completed by the end of fiscal 2026.

How UNFI is using AI to improve its supply chain

Douglas said technology is helping UNFI improve customer service, product availability and inventory management.

The company also said its professional and digital services business is growing faster than the rest of UNFI. Douglas told analysts that much of the recent focus has been on digital tools and services that help customers use technology more effectively.

He said those services are becoming a bigger part of UNFI’s customer offering because they address specific operational needs and can help retailers work more efficiently.

UNFI executives also pointed to broader efforts to modernize operations. President and chief financial officer Giorgio Tarditi said the company raised productivity at its distribution centers by more than 6% in the quarter, helped by automation, network changes and lean management practices.

UNFI said lean daily management was in place at 36 distribution centers at the end of the quarter, up from 34 in the prior quarter.

Tarditi said the company also ran 12 process-improvement workshops during the quarter. Those projects included efforts to shorten new-customer onboarding time and reduce out-of-stocks.

UNFI is also continuing work on a new enterprise resource planning system and additional automation projects. Tarditi said spending on those efforts is expected to increase in the second half of the year.

While UNFI did not break out ecommerce revenue separately, executives tied digital investments to a broader strategy of helping retailers improve operations, sharpen product assortments and create better shopping experiences.

Douglas said the company is also in early discussions with customers about linking technology more closely across wholesale and retail operations, including the use of RELEX tools throughout the supply chain.

The update shows UNFI continuing to put more emphasis on technology as part of its effort to support grocers facing a competitive and changing retail environment.

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