The article, “Some grocers are using AI to cut food waste and boost profit margins” explains how grocers are turning to AI-driven pricing tools to reduce food waste, protect profit margins, and stay competitive. Shoppers have become more price-sensitive with inflation and gas prices rising. Also, about 1/3 of grocery store food ends up in the trash each year and causes a big loss in value. The AI platforms allow grocers to dynamically mark down perishable items as they approach their “best-by” dates. Instead of discounting entire categories, stores can target specific items. This allows the store to reduce waste while still earning value. This also positively impacts the grocery stores because partners of the app Flashfood such as, Kroger, Piggly Wiggly, Loblaws, and Gelson’s have seen about a 27% reduction of waste and shoppers are spending about $28 more per visit. AI is helping grocers balance affordability and profitability while also helping reduce food waste.
AI tools are a good start to help grocers cut waste, but they mostly cover problems like overstocking rather than actually fixing the issue of food waste.
