How retailers are using private brands, technology to curb food waste
Food waste continues to be a problem in America. According to the hunger-relief nonprofit Feeding America, 108 billion pounds of food is wasted annually in the United States, equating to 130 billion meals worth $408 billion. Manufacturers, farmers, grocery stores and consumers all play a role.
Alone, grocery stores waste about 30% of all food inventory, accounting for 16 billion pounds annually, according to waste collection and tracking service Recycle Track Systems.
“Food waste is not just a moral concern but a business one,” said Michael Jaszczyk, CEO at GK Software USA. “Food waste can not only result in lost sales, it can also create a negative image regarding corporate responsibilities. Unfortunately, for retailers, there are too many perishable SKUs on their private label brands that have varying shelf-lives to manually navigate inventory management.”
As sustainability becomes an increased focus for both retailers and consumers alike, food waste management will become a way for retailers to not only take steps towards sustainability, but increase profit margins as well. Some retailers, such as ALDI, known for its expansive private label selection, already have limiting food waste in mind.