Simple Adjustments to Displays Can Make a Big Impact on Waste and Revenue.
New research from the University of Florida reveals that supermarkets have an opportunity to both enhance their profitability and address environmental concerns by adopting smarter strategies for product display and pricing.
According to the study, these simple changes could reduce food waste by more than 20% while boosting profits by an average of 6%, offering a rare win-win scenario for businesses and the environment.
The study, conducted by the University of Florida’s Warrington College of Business, emphasizes the importance of strategic approaches to managing inventory.
“It’s rare to find solutions that benefit both business and the environment, but this appears to be one of them. Our findings highlight that strategically selling older products alongside fresh ones can simultaneously boost profits and minimize waste by leveraging the right product display, discounting rate and discount time.”
Amy Pan, an associate professor and co-author of the study
By integrating older items with fresh stock and applying targeted discounting practices, retailers can encourage customers to make purchases that help move inventory more efficiently.
The research demonstrates that small adjustments in how products are displayed and priced can lead to substantial reductions in food waste, which remains a significant issue for the retail industry.
Many supermarkets discard large quantities of unsold food, contributing to environmental harm and financial loss.
The researchers’ approach centers on combining practical retail strategies with consumer behavior insights.
For instance, strategically timing discounts and clearly marking older inventory to stand out can encourage shoppers to choose these products without sacrificing their shopping experience.
Such strategies not only reduce the likelihood of unsold goods expiring but also optimize sales cycles, creating a more sustainable retail model.
This innovative study sheds light on a critical area of opportunity for grocery stores, where profit margins are often thin, and waste management is a growing concern.
By reducing waste, retailers also mitigate associated costs, including disposal fees and the environmental impact of wasted resources.
Implementing these findings requires minimal investment, making it an attractive solution for businesses of all sizes.
The study’s implications extend beyond profitability.
With growing awareness of sustainability among consumers, supermarkets that adopt waste reducing practices may also enhance their reputation and customer loyalty.
The dual focus on environmental and financial benefits positions these strategies as a forward thinking approach in the competitive retail landscape.
