How Grocers Are Managing the Large-Scale Problem of Food Waste

At Impulse Logic, Frost notes that technologies assist grocers in cutting right through to actionable efforts. “Without accurate inventory handling, especially with perishable items, grocers are too often left with items nearing expiration and few options: mark them down for a quick sale and cut into already slim margins, or discard them and add to higher waste,” he explains. “Strides are being made to reduce and divert food surplus waste, but far more must be done. We believe advancements in technology hold the key. AI and ML provide retailers with actionable insights to match supply with demand, improve efficiency, manage markdowns, and reduce overstocking — all needed to reduce waste.”

According to Frost, such technologies can provide a clear picture of inventory and forecasting. “Too many grocers are buried under an avalanche of data they’ve collected that does not lead to solutions,” he notes. “We’ve developed much-needed new machine-learning algorithms that help retailers down to the store level see the true picture of supply and demand and allow for more precise forecasting and stock optimization.”

Even in categories more affected by waste than others, technology can help, Frost adds. “Waste is sometimes inevitable, for perishables especially,” he points out. “ML has the capability to identify the optimal price, helping to protect the product’s margin as it nears its expiry. Instead of simply reducing products by percentage increments, the technology is helping retailers determine the best price based on several key factors and existing retail data points.” 

In addition to leveraging technologies like AI and ML, grocers are working to lower food waste in their stores through other actions. Several retailers around the United States have partnered with Toronto-based Flashfood, which offers a program allowing retailers to move items nearing their sell-by date.

Customers can use the Flashfood app to buy these products, which include meat, produce, seafood, deli, dairy and bakery items, at up to a 50% discount and pick them up from a designated area inside their local grocery store. One user, Grand Rapids, Mich.-based Meijer, recently shared that its customers have diverted more than 1 million pounds of potential food waste through the Flashfood program. 

Others in the food industry are offering options to consumers seeking to address food waste. Direct-delivery companies Imperfect Foods and Misfit Market, for instance, sell fresh foods and other items that might otherwise go to waste. 

Finally, food can be kept out of landfills in a more grass-roots way. In its survey of grocery retailers, Coresight found that 85.6% of unsold food is donated, sold at a discount or to a liquidator, composted, or used to make prepared foods.