A major company that supplies groceries to supermarkets across the country is closing one of its Pennsylvania facilities, putting dozens of jobs at risk. The latest closure is part of a broader effort by the company to streamline its distribution network.
Philadelphia distribution center is closing
United Natural Foods Inc. (UNFI), one of the largest grocery distributors in the United States, is closing its Northeast Philadelphia distribution center after more than two decades of operation.
The facility has been in operation for 22 years and the closure will result in 48 employees losing their jobs, according to a recent report from the Philadelphia Business Journal.
UNFI supplies grocery stores and other retailers with a wide range of food and consumer products. The company serves both conventional and natural-food retailers, making its distribution network an important part of the grocery supply chain.
Another Pennsylvania facility already transitioned
The Philadelphia closure comes as UNFI continues making changes to its distribution network.
The company previously transitioned away from its Allentown, Pennsylvania, distribution center, with the change completed during the first quarter of fiscal 2026. UNFI has described these moves as part of its broader network optimization efforts.
UNFI has also faced other facility closures and workforce reductions in the region in recent years, highlighting the significant changes taking place within the company’s distribution operations.
Grocery supply chain continues to change
UNFI says its network optimization efforts are intended to improve efficiency and strengthen its operations. The company has been investing in technology and process improvements while consolidating parts of its distribution network.
In its latest financial reporting, UNFI said fiscal 2026 costs have included distribution-center and store closure charges, as well as employee severance and other separation costs.
For the 48 employees affected by the Philadelphia closure, however, the restructuring means the end of jobs at a facility that has been part of the local community for more than 20 years.
The closure adds to a growing list of changes affecting food distribution facilities across the country as major companies look for ways to reduce costs and make their operations more efficient.
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