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United Natural (UNFI) Teams Up With DoorDash to Boost Growth

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United Natural Foods, Inc. (UNFI - Free Report) is on track to widen its end-to-end and last-mile-delivery services to strengthen e-commerce solutions for all retailers. Keeping along these lines, the company signed a reseller agreement with leading last-mile logistics company, DoorDash (DASH - Free Report) . The partnership is aimed at bringing on-demand grocery delivery methods to independent retailers across the nation via the DoorDash marketplace.

With this grocery delivery service, consumers can order essentials and groceries on DoorDash’s marketplace app as well as website with no queues, time slot or minimum order size mandates.The partnership will help independent retailers to offer online grocery ordering and delivery to remain competitive and cut down on additional labor costs. Grocers can leverage DoorDash’s existing logistics network to grow their businesses, attract new shoppers while retaining its current consumer base.

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Online Business: Key Driver

United Natural has been benefiting from e-commerce strength, thanks to increased digital solutions offered by the company. A number of the company’s Independent channels and a greater proportion of Chains channels now provide e-commerce solutions to their customers. Further, United Natural offers digital platforms and the support needed by its customers. Management, in its last earnings call, highlighted that it is focused on making investments in the retail business to enrich consumers’ shopping experience. To this end, the company is undertaking endeavors to improve its e-commerce platform, strengthen delivery offerings as well as enhance data analytics and merchandising ideas.

United Natural is focused on strengthening its e-commerce business. In April 2021, the company launched Community Marketplace — a business-to-business digital e-commerce solution. The platform is designed for emerging brands, which will help the company expand distribution with United Natural’s customers. Community Marketplace will help brands reach out to grocery wholesalers and allow several emerging products, currently unavailable at United Natural’s distribution centers, to be ordered via its Easy Options website. These orders can be shipped directly to retail customers throughout the United States. Thanks to the platform, United Natural’s customers can access a larger assortment of different and local products.

All said, we believe that the partnership with DoorDash will add another leaf to United Natural’s efforts to fortify its e-commerce solutions. The Zacks Rank #1 (Strong Buy) stock has rallied 38.8% in the past three months against the industry’s decline of 2%.

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