24 unchanged sentences
While natural and organic products typically generate higher margins, these margins could be affected by changes in the public’s perception of the benefits of natural and organic products compared to similar conventional products.
+Added: As consumers increasingly initiate grocery searches and purchases through third-party digital platforms, social commerce channels and AI-enabled agents, changes in those platforms’ algorithms, commercial terms or access to customer data could reduce the visibility of our customers and the products we distribute.
In addition, many supermarket chains have increased self-distribution or purchases of items directly from suppliers.
2 unchanged sentences
Further, club stores, commercial wholesale outlets, direct food wholesalers and online food retailers have developed lower cost structures, creating increased pressure on the industry’s profit margins.
+Added: Certain retailers operate broader ecosystems or higher-margin businesses, including digital advertising, marketplaces, membership programs, data analytics, financial services and other offerings, which may enable them to fund lower grocery prices, invest more heavily in fulfillment and technology or acquire customers at a cost that we or our customers cannot match.
Our current or potential competitors may provide products or services comparable or superior to those provided by us or adapt more quickly than we do to evolving industry trends or changing market requirements.
+Added: Our current or potential competitors may more effectively deploy AI, automation, advanced analytics or other technologies, which may achieve lower operating costs, improved service levels, more responsive pricing and assortment decisions or other advantages that impair our ability to compete.
It is also possible that alliances among competitors may develop and that competitors may rapidly acquire significant market share.
4 unchanged sentences
If we are not able to capture scale efficiencies and enhance our merchandise offerings, we may not be able to achieve our goals with respect to our operating margins.
−Removed: In addition, if we are not able to refine and improve our systems continually or effectively implement improvements to our systems without disruption, including any information technology migration to a cloud environment, we may not be able to reduce costs, increase sales and services, effectively manage inventory and procurement processes, or effectively manage customer pricing plans.
+Added: In addition, if we are not able to refine and improve our systems continually or effectively implement improvements to our systems without disruption, including our information technology migration to a cloud environment, we may not be able to reduce costs, increase sales and services, effectively manage inventory and procurement processes, or effectively manage customer pricing plans.
As a result, our operating margins may stagnate or decline.
−Removed: Further, because many of our sales are at prices that are based on our product cost plus a percentage markup, volatile food costs have a direct impact upon our profitability.
−Removed: We have experienced volatile levels of inflation during the past several years, which has had varying impacts on our business.
+Added: Further, because many of our sales prices are based on product cost plus a percentage markup, changes in the rate of product cost inflation can materially affect our sales and profitability.
+Added: Product cost inflation has been volatile in recent years and has had varying impacts on our business.
For example, we experienced negative impacts on our profitability as inflation slowed in recent years and decreased the positive impact of inflation-related buying activities.
5 unchanged sentences
Our long-term strategy is centered on adding value to our customers and suppliers through our expansive assortment of products, services, programs and insights that help them grow and compete.
−Removed: Simultaneously, we are working to improve free cash flow by focusing on what we can control around the areas of network optimization, reduced levels of capital intensity and optimization of our cost structure.
+Added: Simultaneously, we are working to become more efficient, including focusing on network optimization, reduced levels of capital intensity and optimization of our cost structure.
The successful design, implementation and management of these initiatives may present significant challenges, many of which are beyond our control.
−Removed: In addition, the initiatives may not advance our business strategy as expected.
−Removed: We may not realize all or any of the anticipated benefits, or may not realize the anticipated benefits within the expected time frame, due to financial or operational challenges, delays, lower than expected levels of customer and supplier acceptance and implementation or unexpected costs.
−Removed: Any failure to implement the initiatives in accordance with expectations could adversely affect our ability to achieve the anticipated revenue and profitability benefits.
+Added: In addition, the initiatives may not advance our business strategy as expected or may be realized more slowly than anticipated.
+Added: Achieving our long-term strategy may be limited by our ability to optimize our distribution center network to serve our customers, retain existing customers, successfully integrate acquired entities or significant new customers, implement information systems and automation initiatives, or adequately manage our personnel.
+Added: If we fail to optimize the volume of supply operations in our distribution center network, do not retain existing business or do not utilize added network capacity in line with our expectations, excess capacity may exist, which may lead to inefficiencies and adversely affect our business, financial condition or results of operations, including as a result of incurring operating costs for these facilities without sufficient corresponding sales revenue to cover these costs.
+Added: In addition, our network optimization may include the opening of additional distribution centers in new or existing markets if needed to accommodate or facilitate growth or by closing or consolidating distribution centers.
+Added: Our ability to compete effectively, maintain service levels and manage future growth, if any, will depend on our ability to maximize operational efficiencies across our distribution center network, to implement and improve on a timely basis operational, financial and management information systems, including our warehouse management systems, and to expand, train, motivate and manage our work force.
+Added: Our existing personnel, systems, procedures and controls may not be adequate to support the future growth of our operations.
+Added: Failure to successfully manage these actions could negatively impact our ability to grow and could have a material adverse effect on our business, financial condition or results of operations.
+Added: Further, a key element of our current strategy is to distribute and offer differentiated products and services.
+Added: We believe that the ability to distribute these products and offer these services will distinguish us from our competitors and increase demand for our products.
+Added: If we are unable to offer differentiated products and services, our business, financial condition or results of operations may be materially and adversely affected.
+Added: We may not realize all or any of the anticipated benefits, or may not realize the anticipated benefits within the expected time frame, of our strategic initiatives due to financial or operational challenges, delays, lower than expected levels of customer and supplier acceptance and implementation or unexpected costs.
+Added: Any failure to implement our strategic initiatives in accordance with expectations could adversely affect our ability to achieve the anticipated revenue and profitability benefits.
In addition, the complexity of the initiatives requires a substantial amount of management and operational resources.
9 unchanged sentences
Although our purchasing volume can provide benefits, suppliers may not provide the products needed by us in the quantities or at the prices requested.
−Removed: For example, we experienced higher than usual levels of out-of-stocks leading to reduced fill rates during the COVID-19 pandemic.
−Removed: These shortages caused us to incur higher operating expenses due to the cost of moving products between our distribution and warehouse facilities to maintain expected service levels, and we cannot anticipate whether this trend will recur in the future.
We are also subject to supply chain uncertainties and increases in product costs based on conditions outside of our control, which may impact our ability to procure products efficiently.
−Removed: These conditions include work slowdowns, work interruptions, strikes or other job actions by employees of suppliers, challenges with workforce availability, short-term weather conditions or more prolonged climate change, crop conditions, animal diseases, product recalls, water shortages, transportation interruptions, unavailability of fuel or increases in fuel costs, competitive demands, raw material shortages, geopolitical disruptions and natural disasters or other catastrophic events (including, but not limited to food-borne illnesses).
+Added: These conditions include work slowdowns, work interruptions, strikes or other job actions by employees of suppliers, challenges with workforce availability, short-term weather conditions or more prolonged climate change, crop conditions, animal diseases, product recalls, water shortages, transportation interruptions, unavailability of fuel or increases in fuel costs, competitive demands, raw material shortages, geopolitical disruptions, trade policies, supplier financial distress, and natural disasters or other catastrophic events (including, but not limited to food-borne illnesses).
As consumer demand for natural and organic products continues to increase, certain retailers and other producers have entered the market and attempted to buy certain raw materials directly, limiting availability for use in certain of our suppliers’ products.
2 unchanged sentences
We manage these programs and services to increase sales while maintaining or improving our margins.
−Removed: We experienced a reduction in promotional spending and payment of slotting fees for new products by our suppliers as a result of the COVID-19 pandemic, including decreased promotional forward-buying opportunities, and we may experience further reductions or changes in promotional spending (including as a result of the increasing attractiveness of alternative retail channels), which could have a significant impact on our profitability.
+Added: We may experience reductions in promotional forward-buying opportunities or changes in promotional spending (including as a result of the increasing attractiveness of alternative retail channels), which could have a significant impact on our profitability.
We depend heavily on our ability to purchase merchandise in sufficient quantities at competitive prices, and we benefit from our ability to purchase product in advance of price increases.
11 unchanged sentences
In our attempt to reduce operating expenses, increase operating efficiencies and better serve our customers and suppliers, we have invested and continue to invest in the development and implementation of new information technology.
−Removed: We are in the process of converting our existing facilities into a single warehouse management and supply chain platform.
+Added: We are in the process of a multi-year implementation of a new enterprise resource planning (“ERP”) system, which has required, and will continue to require, the investment of significant personnel and financial resources over the duration of the project.
+Added: We are also in the process of converting our existing facilities into a single warehouse management and supply chain platform.
In addition, we remain focused on the automation of certain distribution centers and plan to develop further digital solutions for our customers, suppliers and associates.
1 unchanged sentence
In addition, the costs may exceed our estimates and are expected to exceed the benefits during the early stages of implementation.
−Removed: Even if implementation progresses in accordance with our current plans, and within our current cost estimates, we may not achieve the expected efficiencies and cost savings from our investments.
+Added: Further, we may experience other complications such as potential design defects, miscalculations, testing requirements and the diversion of management’s attention from day-to-day business operations.
+Added: Even if implementation of these technological enhancements progresses in accordance with our current plans, and within our current cost estimates, we may not achieve the expected efficiencies and cost savings from our investments.
Moreover, as we implement information technology enhancements, disruptions in our business may be created (including disruption with our customers), which may have a material adverse effect on our business, financial condition or results of operations.
3 unchanged sentences
Such a shortage could potentially increase labor costs, reduce profitability or decrease our ability to effectively serve customers.
−Removed: If we are unable to realize the anticipated benefits of our efforts to improve labor efficiency, including through automation and other technology initiatives, or to increase productivity and efficiency through other methods, we may be more susceptible to labor shortages than our competitors.
+Added: If we are unable to realize the anticipated benefits of our efforts to improve labor efficiency and safety, including through automation and other technology initiatives, including the use of AI-based technologies, or to increase productivity and efficiency through other methods, we may be more susceptible to labor shortages than our competitors.
We have incurred increased costs to retain and address a shortage of qualified labor in certain geographies, particularly for warehouse workers and drivers, including wage actions, sign-on bonus programs, and increased use of third-party labor.
2 unchanged sentences
In addition, labor is a significant cost of many of our wholesale customers.
−Removed: Any increase in their labor costs, including any increases in costs as a result of increases in minimum wage requirements or wage competition, could reduce the profitability of our customers and reduce demand for the products we supply.
+Added: Any increase in their labor costs, including any increases in costs as a result of increases in minimum wage requirements or wage competition, or changes in their processes due to adoption of new technology such as AI, could reduce the profitability of our customers and reduce demand for the products we supply.
Additionally, the terms of some of our collective bargaining agreements may limit our ability to increase efficiencies.
−Removed: As of August 2, 2025, approximately 10,768 of our 25,600 employees (approximately 42%) were covered by 57 collective bargaining agreements, including existing agreements under negotiation, which expire through March 22, 2030.
+Added: As of August 1, 2026, 11,341 of our 23,431 employees (approximately 48%) were covered by 64 collective bargaining agreements, including existing agreements under negotiation, which expire through May 16, 2031.
In the event we are unable to negotiate reasonable contract renewals with our union associates or are required to make significant changes to terms that are unfavorable to us, our relationship with employees may become fractured, and we could be subject to work stoppages or additional expenses.
5 unchanged sentences
New contracts could have substantially less favorable terms than our existing contracts.
−Removed: Our growth plans may not produce the results that we expect.
−Removed: Our future growth may be limited by our ability to optimize our distribution center network to serve our customers, retain existing customers, successfully integrate acquired entities or significant new customers, implement information systems and automation initiatives, or adequately manage our personnel.
−Removed: If we fail to optimize the volume of supply operations in our distribution center network, do not retain existing business or do not utilize added network capacity in line with our expectations, excess capacity may exist, which may lead to inefficiencies and adversely affect our business, financial condition or results of operations, including as a result of incurring operating costs for these facilities without sufficient corresponding sales revenue to cover these costs.
−Removed: If we are unable to successfully optimize our distribution center network or open additional distribution centers in new or existing markets if needed to accommodate or facilitate growth or if our distribution centers have increased operational challenges it could have a material impact on our ability to grow.
−Removed: Our ability to compete effectively, maintain service levels and manage future growth, if any, will depend on our ability to maximize operational efficiencies across our distribution center network, to implement and improve on a timely basis operational, financial and management information systems, including our warehouse management systems, and to expand, train, motivate and manage our work force.
−Removed: Our existing personnel, systems, procedures and controls may not be adequate to support the future growth of our operations.
−Removed: Our inability to manage our growth effectively could have a material adverse effect on our business, financial condition or results of operations.
−Removed: Further, a key element of our current growth strategy is to increase the amount of differentiated products that we distribute and services that we offer.
−Removed: We believe that the ability to distribute these products and offer these services will distinguish us from our competitors and increase demand for our products.
−Removed: If we are unable to increase these differentiated products and services, our business, financial condition or results of operations may be materially and adversely affected.
−Removed: Our Conventional and Natural businesses could be adversely affected if we are not able to attract new customers, increase sales to or retain existing customers or if our customers are unable to grow their businesses.
+Added: Our Natural and Conventional businesses could be adversely affected if we are not able to attract new customers, increase sales to or retain existing customers or if our customers are unable to grow their businesses.
The profitability of our Natural and Conventional businesses is dependent upon sufficient volume to support our operating infrastructure.
21 unchanged sentences
We have seen and may continue to see an increase in the number of such attacks.
−Removed: For example, in the fourth quarter of fiscal 2025, we experienced the Cybersecurity Incident, which temporarily disrupted our business and impacted our results of operations.
−Removed: For further information regarding the Cybersecurity Incident, see “Cybersecurity” in Item 1C of Part I of this Annual Report on Form 10-K and Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Item 7 of Part II of this Annual Report on Form 10-K.
−Removed: The rapid evolution and increased adoption of emerging technologies, such as artificial intelligence, may also increase the frequency and magnitude of cyberattacks on the Company and amplify our cybersecurity risks.
+Added: For example, in fiscal 2025, we experienced our previously disclosed cybersecurity incident, which temporarily disrupted our business and impacted our results of operations.
+Added: The rapid evolution and increased adoption of emerging technologies, such as AI, may also increase the frequency, sophistication and magnitude of cyberattacks on the Company and amplify our cybersecurity risks.
+Added: These threats are constantly evolving and may include attempts by malicious actors to breach our security and compromise our information technology systems, as well as those of our vendors and suppliers.
Our security efforts and the security efforts of our third-party providers may not prevent or timely detect future attacks and resulting breaches or breakdowns of our databases or systems.
9 unchanged sentences
Further, we may have to negotiate significant discounts and/or extended financing terms with these customers in such a situation, each of which could have a material adverse effect on our business, financial condition or results of operations.
−Removed: During periods of economic weakness, small to medium-sized businesses, like many of our independent channel customers, may be impacted more severely and more quickly than larger businesses.
+Added: During periods of economic weakness, small to medium-sized businesses, like many of our independent retailer customers, may be impacted more severely and more quickly than larger businesses.
Similarly, these smaller businesses may be more likely to be more severely impacted by events outside of their control, like macro-economic shifts or significant weather events.
Consequently, the ability of such businesses to make payments to us may deteriorate, and in some cases this deterioration may occur quickly, which could materially and adversely impact our business, financial condition or results of operations.
−Removed: We may fail to realize the expected benefits of strategic transactions or fail to effectively integrate the businesses we acquire, which may adversely affect our business, financial condition and results of operations.
−Removed: We have engaged in, and could continue to pursue, strategic transactions.
−Removed: Strategic transactions present significant challenges and risks relating to execution.
−Removed: Our ability to achieve the expected benefits of strategic transactions will depend on, among other things, our ability to effectively execute on our business strategies, integrate and manage the combined operations for acquisitions, retain customers and suppliers on terms similar to those in place prior to the transaction, achieve desired operating efficiencies and sales growth, optimize delivery routes, coordinate administrative and distribution functions, integrate management information systems, expand into new markets to include markets of the acquired business, retain our associates and retain and assimilate the acquired businesses’ employees and maintain our financial and internal controls and systems as we evolve our operations.
−Removed: Achieving the anticipated benefits of strategic transactions also depends on the adequacy of our implementation plans and the ability of management to oversee and operate effectively any changes to the operations.
Increases in healthcare, pension and other costs under the Company’s single employer benefit plan and multiemployer benefit plans could adversely affect our financial condition and results of operations.
28 unchanged sentences
The cost of the capital available to us and limitations on our ability to access additional capital may have a material adverse effect on our business, financial condition or results of operations.
−Removed: Historically, capital expenditures and acquisitions have been large components of our growth may be important to our growth in the future.
+Added: Historically, capital expenditures and acquisitions have been large components of our growth and may be important to our growth in the future.
As a result, increases in the cost of capital available to us, which could result from volatility in the credit markets, downgrades of our credit ratings, our not being in compliance with restrictive covenants under our debt agreements or our inability to access additional capital to finance acquisitions and capital expenditures through borrowed funds could restrict our ability to grow our business organically or through acquisitions, which could have a material adverse effect on our business, financial condition or results of operations.
2 unchanged sentences
Our debt agreements contain restrictive covenants that may limit our operating flexibility.
−Removed: Our debt agreements, including the loan agreement (the “ABL Loan Agreement”) related to our $2,730 million asset-based revolving credit facility (the “ABL Credit Facility”) entered into in June 2022, as amended, and the term loan agreement (the “Term Loan Agreement”) related to our $500 million term loan facility (the “Term Loan Facility”) entered into on October 22, 2018, as amended, and the indenture governing our $500 million unsecured 6.750% Senior Notes due October 15, 2028 (the “Senior Notes”) contain financial covenants and other restrictions that limit our operating flexibility and our flexibility in planning for or reacting to changes in our business.
+Added: Our debt agreements, including the loan agreement (the “ABL Loan Agreement”) related to our $2,530 million asset-based revolving credit facility (the “ABL Credit Facility”) entered into in April 2026, and the term loan agreement (the “Term Loan Agreement”) related to our $500 million term loan facility (the “Term Loan Facility”) entered into in October 2018, as amended, and the indenture governing our $500 million of unsecured 6.750% Senior Notes due October 15, 2028 (the “Senior Notes”) contain financial covenants and other restrictions that limit our operating flexibility and our flexibility in planning for or reacting to changes in our business.
These restrictions may prevent us from taking actions that we believe would be in the best interest of our business if we were not subject to these limitations and may make it difficult for us to successfully execute our business strategy or effectively compete with companies that are not similarly restricted.
1 unchanged sentence
Failure to comply with these covenants could have a material adverse effect on our business, financial condition or results of operations.
+Added: We may fail to realize the expected benefits of strategic transactions or fail to effectively integrate the businesses we acquire, which may adversely affect our business, financial condition and results of operations.
+Added: We have engaged in, and could continue to pursue, strategic transactions.
+Added: Strategic transactions present significant challenges and risks relating to execution.
+Added: Our ability to achieve the expected benefits of strategic transactions will depend on, among other things, our ability to effectively execute on our business strategies, integrate and manage the combined operations for acquisitions, retain customers and suppliers on terms similar to those in place prior to the transaction, achieve desired operating efficiencies and sales growth, optimize delivery routes, coordinate administrative and distribution functions, integrate management information systems, expand into new markets to include markets of the acquired business, retain our associates and retain and assimilate the acquired businesses’ employees and maintain our financial and internal controls and systems as we evolve our operations.
+Added: Achieving the anticipated benefits of strategic transactions also depends on the adequacy of our implementation plans and the ability of management to oversee and operate effectively any changes to the operations.
Impairment charges for long-lived assets could adversely affect the Company’s financial condition and results of operations.
9 unchanged sentences
Responding to such actions by activist investors can be costly and time-consuming, disruptive to our operations and divert the attention of management, our Board of Directors and our employees, and our ability to execute our strategic plan could also be impaired as a result.
−Removed: For example, we have in the past retained the services of various professionals to advise us on activist stockholder matters, including legal, financial and other advisory fees.
In the event of an activist campaign, we could be required to incur substantially increased legal, public relations and other advisory fees and proxy solicitation expenses.
3 unchanged sentences
Changes in consumer purchasing habits may reduce demand for certain of the products we distribute.
−Removed: Consumer habits could be affected by a number of factors, including an increase in food-away-from home options, changes in attitudes regarding benefits of natural and organic products when compared to similar lower margin conventional products, new information regarding the health effects of consuming certain foods, changes in disposable income levels, which may be impacted by a reduction in the level of government spending that supports grocery purchases, changes in product prices or other macro trends.
+Added: Consumer habits could be affected by a number of factors, including changes in disposable income levels, which may be impacted by a number of factors, including a reduction in the level of government spending that supports grocery purchases, changes in product prices or other macro trends, changes in behavior arising from the increased use of pharmaceutical weight-loss therapies such as GLP-1, an increase in food-away-from home options, changes in attitudes regarding benefits of natural and organic products when compared to similar lower margin conventional products, new information regarding the health effects of consuming certain foods.
Further, in a sustained economic downturn, consumers may shift their purchases to lower-cost, lower-margin products.
35 unchanged sentences
Our business is highly regulated at the federal, state, and local levels, and our products and distribution operations require various licenses, permits and approvals.
−Removed: • The products that we distribute in the United States are subject to inspection by the United States Food and Drug Administration.
−Removed: • Our warehouse and distribution centers are subject to inspection by the United States Department of Agriculture, the United States Department of Labor Occupational and Health Administration, the Environmental Protection Agency and various state health and workplace safety authorities.
+Added: • The products we distribute and our warehouse and distribution centers are subject to regulatory oversight and inspection by a variety of regulators, including the United States Food and Drug Administration, the United States Department of Agriculture, the United States Department of Labor Occupational and Health Administration, the Environmental Protection Agency, various state health and workplace safety authorities and comparable Canadian laws and regulations governing food safety and transportation.
• Our United States trucking operations are subject to regulation by the United States Department of Transportation and the United States Federal Highway Administration.
81 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.