By implementing Wasteless end-to-end solution, this Italian retailer cut down waste levels by half and increased product margins by 1.2 percentage points, boosting their brand image and keeping freshness at the optimal level.
Food waste is an increasingly costly issue for super- markets, particularly in the Fresh categories. As the retailer quantified the economic and environmental benefits of slashing food waste, they deemed this problem a top priority. They previously implemented last day 50% OFF stickers on an ad-hoc basis, but this was constrained by operational challenges and additional workload. These challenges were particularly apparent in the poultry and meat categories.
The main causes of food waste were:
In March 2019, the retailer decided to implement the Wasteless solution to address the growing problem of food waste. Partnering with a leading meat supplier, a strategic set of products within the poultry category with a limited shelf life and seasonal stability was selected. The project team determined clear KPI’s in order to track the effectiveness of the solution.
After a 12 week program, waste was reduced by 39%, net margins increased by 1.2%, and revenue soared by 110%. Based on customer surveys, 94% of customers understood the discount system – and the store's eco-friendly image improved by 72%.
