International Day of Zero Waste
According to this year’s theme, it is important to reflect on our food consumption (what we eat, what we throw away, and how we can rethink systems to create a more circular, sustainable future). Food waste is a global challenge that affects the environment, the economy, and the resources we rely on. While individuals can make a difference at home, businesses, especially grocery retailers, have the power to reduce waste on a much larger scale through smarter practices.
A recent study published in Management Science highlights one way stores can contribute: by improving the sale of perishable products like fresh fruit, bread, and dairy. Led by Zümbül Atan, Dorothee Honhon, and Xiajun Amy Pan, the research shows that strategic shelf displays and targeted discounts can both increase profits and reduce waste.
Perishable goods are particularly challenging for retailers because they spoil quickly. Unsold items are costly for businesses and harmful to the environment. Many stores use discounts to sell older stock, but until now, it was unclear how to combine this with product placement for the best results. The researchers developed a mathematical model simulating store operations, showing how fresh and older products perform under different display and discount strategies.
The study found that visibility is key. Customers are more likely to buy fresh items when they are easy to see, while older items can be promoted with discounts to encourage timely purchases. When customer flow is predictable, stores benefit from either removing older products entirely or keeping them with smart discounts, ensuring fresh items are always prominent. In unpredictable shopping environments, managers need to adjust their strategies based on daily demand.
According to this study, by applying these insights, stores could increase profits by roughly 6% and reduce waste by about 21% compared to uniform pricing and placement. These results show that even small operational changes (like how products are displayed or discounted) can have a significant impact on sustainability.
Reducing food waste is not just about individual actions at home. It also requires smart business practices. With thoughtful planning, retailers can help the environment, save money, and offer customers fresher products, proving that economic success and environmental responsibility can go hand in hand.
Editor of Daily 27.
Predoctoral researcher at the Department of Sociology in University of Barcelona.