Latest news with #WholeFoods
Forbes
11 hours ago
- Business
- Forbes
Cyberattack On Whole Foods Supplier Disrupts Supply Chain Again
SAN RAFAEL, CALIFORNIA - JUNE 11: A shelf is seen bare in the frozen foods section of a Whole Foods ... More store on June 11, 2025 in San Rafael, California. United Natural Foods, the primary food distributor to Whole Foods, has paused deliveries to Whole Foods stores after a cyberattack crippled its system. Some Whole Foods stores are experiencing empty shelves and freezers. (Photo by) On June 5, 2025, a cyberattack forced United Natural Foods Inc., the primary distributor for Whole Foods Market, to shut down its systems and halt deliveries to more than 30,000 grocery stores across North America. Nearly two weeks later, the company is still operating on a limited basis, relying on workarounds and manual processes. This was not a minor glitch but a direct hit to the digital backbone of the food supply chain. Grocery stores were deemed essential infrastructure during the COVID-19 pandemic, with workers hailed as frontline heroes. Now, in 2025, the breach at UNFI raises a chilling question: what a biological virus could not shut down, could a cyberattack succeed in crippling? If malicious actors can freeze the software that moves food, they can empty shelves, disrupt lives and trigger cascading economic impacts. 'Food security is national security,' one lawmaker warned earlier this year. Congress appears to agree and has introduced the bipartisan Farm and Food Cybersecurity Act of 2025. What happened, and what could have been done to stop it? Whole Foods Market locations across the U.S. experienced product shortages after a cyberattack on ... More its primary distributor, United Natural Foods Inc., disrupted supply chains in June 2025. UNFI, based in Providence, Rhode Island, is North America's largest publicly traded wholesale grocery distributor. The company operates more than 50 distribution centers and supplies approximately 30,000 locations, including supermarkets, independent grocers and food service providers. On June 5, the company detected unauthorized activity on its systems and immediately activated its incident response plan. As a precaution, it took portions of its network offline, which disrupted order processing, fulfillment and shipment capabilities. Law enforcement and external cybersecurity experts were called in to assist with the investigation. The outage was swift and severe. Automated systems for ordering and inventory went dark, forcing cancellations of employee shifts and a return to manual processes. Business operations were impacted across the board, resulting in significant delivery delays. UNFI did not publicly disclose the breach until June 9, when it filed an 8-K with the Securities and Exchange Commission. The company warned that disruptions would continue and outlined its reliance on manual workarounds to maintain critical grocery shipments while digital systems remained down. The downstream impact on retailers was immediate. Whole Foods Market, which depends heavily on UNFI, saw noticeable shortages in key categories. Refrigerated and perishable sections in many stores went empty. Store employees posted apology signs for out-of-stock items and explained delays. Customers posted photos of empty shelves across multiple locations. Independent grocers and regional chains also reported missed or delayed shipments. Many scrambled to find backup suppliers. Some succeeded, but others simply ran out of stock, leaving consumers with fewer options. Even the United States military's Defense Commissary Agency was affected. Fifty-three commissary stores reported delays. While some mitigated the issue with manual ordering, many still faced inventory shortfalls. A single breach had turned into a national supply chain shock. With just-in-time inventory models and limited buffers, grocers were vulnerable to even short-term digital outages. The result was fewer choices for shoppers and deeper concerns for the industry. As of mid-June, UNFI has not confirmed the source or type of cyberattack. The company has avoided calling it ransomware, and no group has claimed responsibility. Still, experts widely agree that the attack shares several characteristics typical of ransomware events, including a full system shutdown, containment procedures and prolonged disruption. While unproven, the consensus is that ransomware is the most likely explanation, especially given the sharp rise in attacks against the food and retail sectors. In similar cases, attackers have encrypted systems and demanded payment in exchange for restored access. On a June 10 earnings call, UNFI Chief Executive Officer Sandy Douglas said only that the company was managing through the incident and focused on safe restoration. The company has shared few details. It remains unclear whether any data was stolen or whether negotiations are ongoing. The lack of attribution could indicate behind-the-scenes engagement with law enforcement, which is common in complex ransomware cases. Until the investigation is complete, the grocery sector remains on high alert. The breach underscores just how vulnerable essential supply chains have become. The attack on UNFI is part of a broader trend of attacks on the food supply chain. Recent high-profile incidents include: Cybercriminals have proven they can cause real-world consequences across the food sector. 'The cyberattack on United Natural Foods is not an isolated incident but part of a growing trend,' said Jeff Wichman, incident response director at Semperis. The risk is no longer hypothetical. The attack has sparked urgent conversations throughout the grocery industry. Key priorities include: Cybersecurity is no longer optional. Food supply chains are essential and increasingly targeted. Resilience must be a top priority across every tier of the industry. By mid-June, UNFI had resumed shipments from most distribution centers and made progress restoring systems. Still, many operations rely on manual processes, and product shortages persist in some regions. The impact is ongoing and visible. This breach should serve as a turning point. Whole Foods and other retailers must invest in both digital defenses and supply chain resilience. Distributors must act with urgency. In the business of feeding families, downtime is unacceptable. The next attack could hit harder and spread faster. The time to prepare is now.
Forbes
a day ago
- Business
- Forbes
Stockouts And Loyalty: Lessons From Whole Foods' Empty Shelves
Some shelves at a Whole Foods in New York City sit emptier on June 10, 2025. (AP Photo/Wyatte ... More Grantham-Philips) Whole Foods has made progress in recent years shedding its elite image as 'Whole Paycheck.' But the specialty grocer is now facing a more down-to-earth problem: empty shelves. And that's not great for customer experience. A cyberattack on June 5 crippled United Natural Foods (UNFI), the $30 billion grocery wholesaler that is Whole Foods Market's largest supplier. UNFI took some of its systems offline – and acknowledged in a filing that day with the Securities and Exchange Commission that the incident had 'temporarily impacted the Company's ability to fulfill and distribute customer orders.' A June 10 photo distributed by The Associated Press (above) showed partially empty shelves at a New York City Whole Foods, five days after the attack. That left some Whole Foods customers unable to find sought-after items such as Sasanian Imperial Osetra Caviar or Nielsen-Massey Madagascar Bourbon Vanilla Extract. Customers expect consistency in every interaction with a brand but perhaps above all in inventory. They want what they want when they want it – and if they don't get it, they will find another retailer who has it. Research shows that millions of consumers are switching brands, a trend driven by cultural shifts that were heightened by the COVID-19 pandemic. The immediate customer experience impact of stockouts extends far beyond a single missed purchase. In the short term, this translates to immediate revenue loss as customers pivot to competitors, often discovering alternatives they might prefer. More damaging is the long-term erosion of trust: repeated out-of-stock experiences can result in order cancellations and returns, increased customer service costs, and brand or reputational risk. According to a study at Walden University, 'repeated stockout experiences decreased customers' loyalty to brand and retailer and caused customers to abandon both.' In short, retailers need to avoid being viewed as unreliable. Even though the shelf shortfalls were not the fault of Whole Foods, the chain can take some steps to at least mitigate the damage. The key is communication, more of it not less. In times of crisis, it's hard to overcommunicate as long as what you are saying has some utility. Customers want information that directly affects them and their families, and all communications should be written from that perspective. Instead, companies often write from their own perspective, talking about all of the things 'we' are doing instead of focusing on how it benefits 'you' the customer. Whole Foods landed somewhere in the middle. One sign spotted in a New York City Whole Foods affixed to semi-empty shelves read: 'We are experiencing a temporary out of stock issue for some products. We apologize for the inconvenience and should have your favorite products back in stock soon.' It explains the problem, at least in general terms – and includes an apology. Even better would have been to: The issue emerged when UNFI 'became aware of unauthorized activity on certain of its Information Technology (IT) systems,' according to the SEC filing. The company responded by activating its incident response plan and implementing 'containment measures,' the filing said. One such measure was proactively taking some systems offline, which caused what UNFI called 'temporary disruptions to the Company's business operations.' Nearly a week later, that meant Whole Foods and some other U.S. grocers who are UNFI customers were only being supplied 'on a limited basis.' UNFI officials told investors on an earnings call that they were working with the FBI to determine the source of the intrusion and why their defenses failed, but little additional information has emerged about the attack. 'We just got penetrated,' CEO Sandy Douglas said. The incident was one of a growing number of cyberattacks affecting retailers and their customers. Victoria's Secret, for example, was forced to take down its U.S. website in late May after what it called a 'security incident' that also left some in-store services unavailable. The retailer later said the incident involved its information technology systems and that the website shutdown was a precaution. Victoria's Secret displayed this message on its home page on May 29, 2025. And in Britain, several recent cyberattacks have taken down retail websites and led to empty shelves in at least one grocery chain. The issues affecting Whole Foods reinforce two truisms about customer experience: the importance of supply chains and the lack of control facing companies. Global supply chains have a major impact on customer experience, as shown once again by Whole Foods paying the price, so to speak, for problems affecting its supplier. Since at least the 1990s, customers have wanted their favorite products faster and faster, and the supply chain disruptions of COVID heightened that trend. Customers tend to not care what's happening in the background – a shipping problem, a delivery problem, containers stuck in ports – they just want the product, fast. And they tend to blame the company if they don't get it. Which illustrates that sometimes there are elements of customer experience that companies just cannot control. Yet even if the issue is not their fault, it's still their problem, as Whole Foods quickly learned. What can companies do? A few things: Even during major crises, customer experience is still the one true competitive advantage. The Whole Foods situation demonstrates that while companies cannot control every element of their supply chain, they can control their response. And that starts with being prepared. Retailers that emerge stronger from stockout situations are those that view these challenges not as isolated operational issues, but as defining moments that reveal their culture of customer-centricity. Inventory issues are inevitable, so the quality of communication, the creativity of solutions, and the speed of recovery become critical components to the long-term customer experience. Customers will forgive single negative experiences, but it's how a company responds that will stick with them and determine their loyalty going forward.
7NEWS
2 days ago
- Sport
- 7NEWS
HYROX: Meet the people behind the athletic competition taking over the world
They came, they saw and they HYROX'D. More than 4000 registered athletes and just as many supporters descended on Chicago this past week to compete in the HYROX World Championships. Know the news with the 7NEWS app: Download today It would have been an odd thing to experience, if you so happened to be on holiday in the 'Windy City'. Imagine, fit bodies in every Whole Foods and Starbucks on every street corner when you were just expecting … deep-dish pizza and architecture. Odd … but not uncomfortable. HYROX… What is that? Overheard over many a coffee order in Chicago: 'What is HYROX?' and 'You do ALL of that?' What followed was a casual chat about all things accent and why such an odd name for a workout. HYROX stands for Hybrid Athletes and it's a training style rapidly changing gym culture here in Australia and around the world. It started in 2017 with humble numbers in Germany with 650 people competing. This season saw 600,000 people across the world take part. The event in Chicago is the very best of more than half-a-million humans from each age group, taking part to be crowned the world's best. It's like the global footy finals. It's special to be here. The workout involves eight 1km runs, with a different functional fitness station at the end of each one. Functional — a word thrown about a lot in fitness, for the general population. Movements that are athletic and translatable to body movements any human would use. The moves focus on exercises that mimic the activities of daily life. For HYROX, that's a SkiErg, sled push, sled pull, burpee broad jump, rowing machine, farmers carry, lunges and, finally, a wall ball. Each exercise has a rep or distance target the participant must meet before being cleared to run 1km to their next phase. And the criteria for each movement is strict: burpees with chest to ground, wall balls with butts low, lunges with the knee kissing the carpet. I saw many no reps and looks of anguish. I also saw a lot of heart. Community and champion competitors I witnessed Rosa from Mexico stand on the podium for her time of 2:10:20 in her age category of 75-79. I got a high five from 71-year-old Debbie Leahy, in fluoro, as she passed on one of her runs. The former netball representative from Victoria, Australia, had the vibes of a 20-year-old … iconic. Carole Munro from Scotland told me her two hip replacements were not holding her back, but standing on the podium gave her 'the scares'. Her son Stuart, donned in full kilt, got her to laugh and smiled the 'scares' right out of her as she ascended the podium to her hard-fought position of third place. Peter Rogers flew from Brisbane to be on 'holiday' with his super-gran wife Sue who came second in the world for her category of 60-64. He was busy relaying updates to the support community in Everton Park as she pushed, pulled, and ran her way around the course. This grassroots, human connection shows why HYROX is changing the gym culture around the world, and people are flocking to it. Sporting prowess They are known as the elite athletes, the very best 15 men and women who are the top tier of athleticism for HYROX. Win an age-group title, and if your average race time across two events is within the top 15 across all age groups you are in this realm. And the Aussies are impressive. Hardworking and humble. Joanna Wietrzyk placed second in the elite 15 women's category. Gracious, humble and moving like she is made to HYROX, this 23-year-old only 'tried' it just over a year ago. She's quickly moved from rookie to dominate the female category. She is Australia's sweetheart. James 'JK' Kelly — he's the Aussie battler. His drive and discipline is impressive, placing fourth in the men's category. He was as much there for his race as the people he helps race theirs. Approachable. Disciplined. He is someone who has fought his way to the top over almost as many seasons as HYROX has been around. And of course, HYROX now has Tia-Claire Toomey Orr. The woman is amazing. Named in the King's Birthday Honours this year for her services to weightlifting and crossfit, the Commonwealth Games gold medallist recently retired from crossfit (where she has more title wins than any other athlete in the history of the sport), shifting her focus to HYROX. She competed in the mixed doubles with Aussie James Carmody — also insanely athletic — and so darn nice. They all are. Worth the hype? There is no doubt HYROX is an amazing feat to watch and the insane athleticism makes it a spectator sport through and through. One thing is for sure, the culture is growing and the community is here to stay. It will grow if HYROX doesn't forget the key element setting this sport apart. The people. Those grassroots competitors with their leagues of supporters that help them train and follow them to these crazy events all to champion their person. It's unreal to see anyone of any age achieve something they weren't sure they could. It's heartwarming to see the supporters cheer on their athlete. The yells of encouragement, the signs, the support, the hugs, the tears. It's the people giving it a go who are responsible for helping HYROX revolutionise gym culture and catapult it in popularity. It's people like Rosa from Mexico, standing first on the World Championship podium for age category 75-79, holding back tears as her national anthem plays.
Yahoo
2 days ago
- Business
- Yahoo
Scott Galloway Says People Are Still Spending, Shopping At Whole Foods, And Vacationing Despite 'Irrational Economic Policy.' Why Is That?
On a recent episode of 'Prof G Markets,' marketing professor and investor Scott Galloway noted that Americans are still eating out, booking trips, and shopping at places like Whole Foods, even though the economy feels increasingly uncertain. In his view, consumer spending habits haven't yet reflected what he calls 'irrational economic policy.' 'If you didn't know all of this was going on, I'm not sure you would know what's going on,' Galloway said, referring to President Donald Trump's policies and global instability. Markets remain near record highs. People are spending. Unemployment is still low. On the surface, the economy looks fine. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to But podcast guest, economist Kathryn Anne Edwards, warned it's more complicated than it seems. 'We are witnessing... a slow slowing of the U.S. economy,' she said. Job growth has been revised downward in recent months, and more people are quietly dropping out of the labor force. For job seekers, it's already feeling like a recession. One key reason for the economy's resilience, according to Edwards, is that the threats haven't fully materialized yet. 'Trump has more bark than bite,' she said. 'Were he to pursue [his policies] fully... we'd start to see declines in the labor force, massive shortages, and reductions in government spending.' In short, the damage hasn't kicked in because many of the policies are still just talk. Businesses are holding back but not retreating, waiting to see what happens. 'They're terrible, but they're also not in full practice,' she said. Trending: Invest where it hurts — and help millions heal:. Beneath the headline numbers, there are warning signs. Healthcare jobs are growing, but Edwards said that's due to an aging population, not economic strength. Podcast co-host Ed Elson cited LinkedIn data that says entry-level hiring is down 23% from March 2020, with recent college grads facing some of the highest unemployment rates in years. 'The unemployment rate for young people is always higher,' she said, with Elson adding that it's the highest in years. The conversation also turned to long-term economic policy and the ongoing push for more tax cuts. '37% of the increase in the federal debt [since 2001] comes from tax cuts,' Edwards explained. 'That's a pretty large number for what I would struggle to point to a single clear accomplishment.' She argued that policymakers have done little to reduce inequality and that tax cuts are more political than economic. Galloway agreed: 'We've been pursuing a strategy of tax cuts for several decades and it isn't working.' As for raising the minimum wage, Edwards said it's more reasonable to link it to average or median wages in the economy instead of productivity growth, which can be distorted by factors like corporate profits or acknowledged the difficulty younger workers face but suggested part of the issue may be expectations. 'I don't believe they can't get jobs,' he said, referring to recent college grads. 'I just don't think they're willing to take the jobs that are available.' He argued that high salary expectations, especially among elite college graduates, may not match the current hiring climate. 'The average compensation at [New York University] Stern is $212,000. I think there's an absence of $212,000 a year jobs at Salesforce being product managers.' Elson pointed a finger at universities. 'The colleges should be on the hook for a low employment rate if you graduate at that time and can't find a job,' he said. Maybe it's not just the market or the student—maybe it's the college, too. Read Next: Here's what Americans think you need to be considered wealthy. Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Scott Galloway Says People Are Still Spending, Shopping At Whole Foods, And Vacationing Despite 'Irrational Economic Policy.' Why Is That? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Miami Herald
2 days ago
- Business
- Miami Herald
Whole Foods suddenly closing down another grocery store forever
You probably don't stop to consider the ins and outs of your local supermarket's business during your weekly run. Those economic intricacies are typically for board rooms and operators to ponder. Related: Huge retail chain suddenly closing 100s of stores, no bankruptcy Of course, if you're a nosy retail writer, you might find yourself considering these factors pretty closely. You might, for example, linger for too long in the produce aisle, trying to figure out the cost your store might incur to ship in organic blueberries from across the country, as opposed to the pint available from the next state over. By and large, however, you probably aren't going to your local grocery store with economics on the mind. But it's keeping these very ideas in mind that's helping supermarkets stay afloat. In many cases, economic details are where most grocery stores make their money. It's estimated that about 50% of grocery stores fail within the first five years of operation, partly because running such a business can require a lot of up-front capital and all of one's time. It's no secret that running a grocery store is a difficult venture. That's partly because these stores operate on razor-thin profit margins. In fact, the average supermarket only makes between two to three percent profit in its best quarters, and that's if everything goes according to plan. More closings: Popular local Dairy Queen rival suddenly closing, no bankruptcyAnother big Mexican chain closing down restaurant, no bankruptcyUPS suddenly closing more stores amid chaotic new change, layoffsPopular fast-food burger chain closes all restaurants in key area Grocery stores are also massive operations; the average store is about 40,000 square feet. And every single one of these square feet must be tightly temperature controlled and restocked often. Any slight variation to this cadence can mean all those perishable goods go to waste. Which means that utility bills, plus the cost of labor and goods, are typically quite high. And many of the most popular items at a grocery store are often loss leaders, like produce, chicken, bread, milk, and eggs. When you add into this the rising levels of inventory shrink (or the industry term for losses due to theft and other issues), profits quickly dwindle. So it's really no surprise that grocery stores across the U.S. run into issues on a regular basis. Sometimes those issues become insurmountable, and a store must do the unthinkable: face going into the red, or close altogether. And now, Whole Foods has announced it will close a location in Seattle, Wash., in June. Related: Another giant cosmetics brand closing store unexpectedly The Whole Foods is located in the Capitol Hill area of the city and sits at the bottom of the Danforth, a new luxury apartment building. "The area has also been at the center of a growing public safety debate with plans for a county mental health crisis center across the Madison-Broadway intersection," Capitol Hill Seattle wrote of the closure. The area is near Seattle University and several medical centers. Its last day is slotted for June 20, 2025. "Like any business, we regularly evaluate the performance and growth potential of each of our stores and make decisions to position the company for long-term success," a Whole Foods spokesperson told CHS. There are still several grocery stores in the area, including a few Safeway stores. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
