United Natural Foods Launches National Retail Media Network for Independent and Regional Grocers in Partnership with Swiftly

Rhea-AI Summary

United Natural Foods (NYSE: UNFI) has launched the UNFI Media Network™ (UMN), in partnership with Swiftly, aimed at independent and regional grocery retailers in the U.S. The network will leverage Swiftly's advanced retail technology to connect over 30,000 retail customer locations and 11,000 brand partners with consumers through personalized promotions. This initiative aims to enhance the digital competitiveness of UNFI’s retail customers and create new marketing opportunities for suppliers. UNFI CEO Sandy Douglas emphasized the network’s potential to generate sustainable value for customers, suppliers, and shareholders. Swiftly CEO Henry Kim highlighted the platform’s capacity to transform businesses and engage millions of consumers nationwide.

Positive

• Launch of the UNFI Media Network™ (UMN), a first-of-its-kind initiative in the U.S.
• Partnership with Swiftly, known for advanced retail technology.
• Access to over 30,000 retail customer locations and 11,000 brand partners.
• Enhanced digital competitiveness for UNFI’s retail customers.
• Personalized promotions to better connect brands with consumers.
• Potential to create compelling and sustainable value for customers, suppliers, and shareholders.
• Opportunity for suppliers to market directly to consumers via the network.

Negative

• No concrete financial metrics or projections provided in the announcement.
• Uncertainty about the cost and implementation timeline of the UMN.
• Potential challenges in adoption of the new technology by independent and regional grocers.
• Possible risk if the partnership with Swiftly does not meet expectations.

Insights

Retail Technology Analyst

The launch of UNFI Media Network™ is a significant move in the retail industry, especially for independent and regional grocery retailers. This partnership with Swiftly represents a strategic enhancement of UNFI’s digital capabilities. For context, retail media networks are platforms that allow retailers to monetize their digital properties by selling advertising space to their suppliers. By leveraging Swiftly’s technology, UNFI can offer personalized promotions, advanced analytics and closed-loop reporting to its retail customers and brand partners.

From a financial standpoint, this initiative could potentially increase advertising revenue streams for UNFI. Independent and regional retailers often lack the resources to develop such sophisticated digital solutions on their own. By providing a turnkey solution, UNFI is creating new opportunities for these retailers to engage with consumers in a highly targeted manner.

However, it's essential to consider the execution risks. The integration of Swiftly’s platform across more than 30,000 retail locations is a massive undertaking. Any technical glitches or delays could impact the adoption rate and effectiveness of the network. Furthermore, the success of this initiative will heavily depend on the willingness of retailers and brands to leverage this new platform, which is not guaranteed.

In the short term, this partnership is likely to generate positive buzz and may lead to an uptick in UNFI’s stock price. Long-term, its success hinges on consistent execution and market adoption.

Market Research Analyst

The UNFI Media Network™ empowers independent and regional grocers to compete with larger chains by providing them access to sophisticated digital marketing tools. This is important in an era where digital transformation is no longer optional but a necessity. Swiftly’s platform offers retailers a way to personalize promotions and analyze consumer behavior, which can lead to more effective marketing strategies and higher engagement rates.

This move can also be seen as a direct response to the growing importance of e-commerce and digital engagement in the grocery sector. Consumers are increasingly looking for personalized shopping experiences and seamless digital interactions. As such, the ability to offer tailored promotions and gather actionable insights could be a game-changer for many of these smaller retailers.

However, the competitive landscape must be considered. Larger grocery chains and other digital-native companies are also investing heavily in their own retail media networks and advanced digital tools. UNFI will need to ensure that its offering is distinctive and provides clear value to its partners to gain a competitive edge.

In summary, while the initiative holds significant promise, its success will depend on effective implementation and the ability to differentiate itself in a crowded market.

Financial Analyst

From a financial perspective, the launch of the UNFI Media Network™ could be a lucrative addition to United Natural Foods' revenue streams. Retail media networks can generate substantial additional revenue by selling advertising space to brands. This can be particularly beneficial given the low-margin nature of the grocery sector, providing a high-margin revenue stream without significant additional costs.

Moreover, by partnering with Swiftly, UNFI leverages an established technology platform rather than developing one in-house, which can be both time-consuming and capital-intensive. This strategic partnership implies a focus on capital efficiency and rapid deployment, potentially leading to quicker returns on investment.

However, investors should monitor the initial costs associated with the rollout and integration of this network, as these could impact short-term profitability. Additionally, the long-term financial benefits will depend on the adoption rate among retailers and suppliers, as well as the competitive dynamics within the retail media landscape.

Given the potential for increased revenues and market differentiation, this initiative appears financially sound, provided execution risks are managed effectively.

UNFI Media Network™, powered by Swiftly, will enable brands to better connect consumers with tailored promotions

PROVIDENCE, R.I.--(BUSINESS WIRE)-- United Natural Foods, Inc. (NYSE: UNFI) is announcing the launch of the first-of-its-kind Retail Media Network for independent and regional grocery retailers across the United States. The UNFI Media Network™ (UMN), powered by Swiftly, a leading provider of innovative retail technology, tools, and solutions, is intended to bring cutting-edge retail technology solutions to UNFI’s extensive network of more than 30,000 retail customer locations and approximately 11,000 brand partners, to help them compete in an increasingly digital-first world.

The UNFI Media Network™, powered by Swiftly, is intended to bring cutting-edge retail technology solutions to UNFI’s extensive network of more than 30,000 retail customer locations and approximately 11,000 brand partners, to help them compete in an increasingly digital-first world. (Graphic: Business Wire)

UMN combines UNFI's expansive scale and breadth of supplier offerings with Swiftly's advanced technology platform, personalization engine, closed-loop reporting, and analytics capabilities. The goal of UMN is to empower UNFI’s retail customers to connect more meaningfully and personally with their consumers while simultaneously providing unique opportunities for UNFI suppliers to showcase their brands and build their brand equity. It is designed to enable retailers to reach their shoppers digitally while connecting to the industry’s largest collection of suppliers, who in turn, can take advantage of this platform to more effectively market directly to shoppers through the retailers in the network.

Sandy Douglas, UNFI’s Chief Executive Officer (CEO), highlighted, “UNFI’s partnership with Swiftly is formidable, offering an innovative solution to power both enterprise and independent grocer technology and retail media. UMN enables UNFI’s retail customers and suppliers to better compete in today’s retail marketplace, with an increasingly digital focus. We believe UMN, powered by Swiftly, will help us create compelling and sustainable value for our customers, suppliers, and shareholders.”

“We are thrilled to be pioneering a new chapter in the independent grocery retail channel alongside industry leader, UNFI," said Henry Kim, Chief Executive Officer (CEO) at Swiftly. "Over the years, Swiftly has earned a stellar reputation amongst key brands and retailers for its turnkey, industry-leading technology and proven success helping partners digitally transform their businesses. Leveraging Swiftly’s advanced technology platform, UMN will enable brands to reach tens of millions of consumers across the U.S. Additionally, retailers will gain access to the content provided by UNFI’s approximately 11,000 brand partners, enhancing their offerings, and driving engagement with consumers. Together, we are positioned to build one of the leading retail media networks in the U.S., one that is dedicated to ensuring the growth and success of today’s independent and regional grocers.”

Louis Martin, UNFI’s President of Wholesale, said, “We’re excited that our partnership with Swiftly is off to a strong start. We are already engaged with many of our customers and brand partners about the value we can bring to their businesses. UMN represents a new chapter in UNFI’s ongoing commitment to support the sustainable growth of all those that we serve.”

About UNFI

UNFI is North America's premier grocery wholesaler delivering the widest variety of fresh, branded, and owned brand products to more than 30,000 locations throughout North America, including natural product superstores, independent retailers, conventional supermarket chains, ecommerce providers, and food service customers. UNFI also provides a broad range of value-added services and segmented marketing expertise, including proprietary technology, data, market insights, and shelf management to help customers and suppliers build their businesses and brands. As the largest full-service grocery partner in North America, UNFI is committed to building a food system that is better for all and is uniquely positioned to deliver great food, more choices, and fresh thinking to customers. To learn more about how UNFI is delivering value for its stakeholders, visit www.unfi.com.

About Swiftly

Swiftly is a leading provider of technology and retail media and technology solutions for retailers worldwide. Founded in 2018, Swiftly offers innovative solutions that drive retail engagement and enable retailers to own the digital relationship with their customer. Swiftly's Retail Tools, Mobile Platforms, Analytics Tools, and Retail Media Network enables retailers to accelerate sales and build loyalty while enabling brands to reach more shoppers and amplify campaigns using the power of 1st party data. Trusted by hundreds of iconic brands, Swiftly is democratizing retail technology and giving retailers the tools they need to compete in today's crowded marketplace. To learn more visit www.swiftly.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements include those described in the Company’s filings under the Securities Exchange Act of 1934, as amended, including its annual report on Form 10-K for the year ended July 29, 2023, filed with the SEC on September 26, 2023, and other filings the Company makes with the SEC. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not undertaking to update any information contained in this press release to reflect subsequently occurring events or circumstances. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These estimates are subject to change and could differ materially from final reported results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240523207180/en/

For UNFI Investors:

Kristyn Farahmand

401-213-2160

kristyn.farahmand@unfi.com

-or-

Steve Bloomquist

952-828-4144

steve.j.bloomquist@unfi.com

For Media:

UNFI

Charles Davis

215-539-1696

cdavis@unfi.com

Swiftly

5WPR

swiftly@5wpr.com

Source: United Natural Foods, Inc.

FAQ

What is the UNFI Media Network (UMN)?

The UNFI Media Network (UMN) is a new retail media network launched by United Natural Foods in partnership with Swiftly, aimed at independent and regional grocery retailers across the U.S.

What is the goal of the UNFI Media Network?

The goal of the UNFI Media Network is to enhance the digital competitiveness of UNFI’s retail customers and create new marketing opportunities for its 11,000 brand partners by leveraging Swiftly's advanced technology.

How many retail locations and brand partners are involved with the UNFI Media Network?

The UNFI Media Network involves more than 30,000 retail customer locations and approximately 11,000 brand partners.

What technology does Swiftly bring to the UNFI Media Network?

Swiftly brings advanced retail technology, including a personalization engine, closed-loop reporting, and analytics capabilities, to the UNFI Media Network.

How will the UNFI Media Network benefit consumers?

Consumers will benefit from personalized promotions and enhanced engagement with brands through the UNFI Media Network.

What does UNFI's CEO say about the new media network?

UNFI’s CEO, Sandy Douglas, highlighted that the partnership with Swiftly will help create compelling and sustainable value for customers, suppliers, and shareholders.

What does Swiftly's CEO say about the partnership with UNFI?

Swiftly’s CEO, Henry Kim, stated that the partnership positions them to build one of the leading retail media networks in the U.S., enhancing the offerings and driving engagement with consumers.