Retailers continuously search for ways to reduce the cost of fresh food waste, deletions and end-of-season lines, as waste costs can easily exceed 5% of fresh food sales. Discounts put increasing pressure on slim food retail margins, so it’s vital to find ways to cut costs to maximise operating margins. From seasonal changes and carrying the wrong stock to ineffective markdown prices, it’s easy to lose revenue unnecessarily.
Governments, charities and public opinion are putting increasing pressure on grocery stores to reduce the amount of waste going to landfill. But as fresh food sales account for a significant amount of a store’s revenue and are a top reason to shop for customers, it’s vital that products are available and shelves are well stocked. Accurate forecasting, dynamic weather conditions and finding the balance between food waste and customer satisfaction throughout the day are perennial challenges, and excess stock will always occur. So it’s important that retailers have a safety net to manage end-of-shelf-life products.
Up to 60% of a grocery retailer’s sales can come from fresh produce, yet there are few robust and proactive approaches to minimising waste and maximising sell-through before end-of-life. Many retailers look to their data for help, but analytics is only half the solution: accurate price reductions are only valuable if implemented. Too often decisions are made at the discretion of store managers.
The UK arm of a global retailer saved over £20m a year in direct costs from new markdown pricing and processes optimised for time, store, and stock
A top grocer identified $47.9m of immediate opportunity in a pre-roll out trial of our waste and markdown solution
The world’s largest retailer realised a $0.27Bn cost saving in its lead market, with a reduction in store labour