UNFI to sell three Cub grocery locations

United Natural Foods, Inc. (UNFI) has agreed to sell three Cub Foods locations in Minnesota to franchise partner Jerry’s Enterprises, the grocery wholesaler and retailer confirmed Friday. The stores—located in Minneapolis, Monticello, and St. Anthony—will remain under the Cub banner after the transaction closes.

The deal, first reported by the Minneapolis/St. Paul Business Journal, does not include financial terms. A UNFI spokesperson said the sale supports Cub’s broader strategy to strengthen its position in Minnesota and become the state’s top grocer. The spokesperson indicated that UNFI concluded selling the stores to Jerry’s will allow the grocery company to direct resources toward strengthening the Cub banner.

Stores to stay under Cub name, with new investment

Jerry’s Enterprises, which already operates multiple Cub locations, will take over ownership of the three supermarkets. The spokesperson described Jerry’s as having a “proven track record of operating high-performing Cub stores and delivering a great experience for shoppers.”

UNFI said the transition will allow continued investment in the locations, including “ongoing enhancements.” The spokesperson did not provide a timeline for when the sale is expected to finalize.

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The decision comes as UNFI’s retail segment, which includes Cub and the East Coast chain Shoppers, has struggled with declining sales in recent quarters.

Turnaround not factored into investor projections

David Best, UNFI’s president and CEO of retail, said during an investor day last December that while large retailers dominate headlines, smaller, differentiated grocers are also gaining traction. Best, who joined UNFI in August 2025 after serving as president and COO of Coborn’s Inc., has been tasked with improving Cub’s performance. During the investor day, he outlined a plan that includes refining Cub’s product mix to better align with local tastes, improving in-store signage and navigation, and enhancing employee training to support a more customer-centric culture.

UNFI CEO Sandy Douglas framed the chain’s turnaround as an opportunity rather than a certainty. “For investors, the Cub turnaround is not part of our projections,” he said. “It’s something that, as David succeeds, will generate incremental value for the business.”

UNFI’s move to sell the stores suggests a shift in strategy, prioritizing partnerships with operators like Jerry’s while redirecting resources toward broader improvements across the Cub brand. Cub, founded in 1968, operates nearly 80 stores across Minnesota and surrounding states. Jerry’s Enterprises, based in Edina, Minnesota, has been a Cub franchisee for decades and currently runs more than a dozen locations under the banner.