Why are Whole Foods' shelves still empty? Updates for shoppers
Grocery shoppers across the United States have noticed barer-than-usual shelves lately after a cyberattack has disrupted operations at United Natural Foods Inc. (UNFI), one of the country's biggest food distributors, including Whole Foods.
During a 10 June earnings call, UNFI CEO Sandy Douglas revealed the company is still reeling from the impact of the attack. 'We are partnering with customers across the country and across our formats in various short term mode to serve their needs as best as we possibly can,' Douglas said.
'Any way that we can help them meet their needs, we're doing.'
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The company first detected suspicious activity on June 5 and quickly began investigating. Douglas noted they acted within days to shut down systems and notify investors. 'So there is no way that we could have communicated any faster, and there was no trading,' he told the investors.
UNFI officially disclosed the cyber incident on 9 June, filing a Form 8-K with the Securities and Exchange Commission before markets opened.
'We just got penetrated, so we will be continuing to look at every aspect of our defense, every aspect of how our tools are working, and what may be necessary to bolster it going forward, because it's clearly an area that requires a tremendous amount of focus from companies today,' Douglas explained, as the are now working with the FBI and other authorities to figure out how the breach occurred and how to prevent it in the future
Whole Foods shoppers have reported empty shelves in various locations, with store signs citing 'supplier issues' and promising restocks soon.
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When reporters pressed whether the disruption has forced retailers to break supplier contracts, Douglas responded, 'I wouldn't be able to factually answer that question, even if I was inclined to disclose it.'
'The focus is making sure we serve the customers and have them be able to do whatever they need to do the best they can in this environment.'
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