Smarter shelf strategy can boost retail profits and cut food waste by more than 20%, study finds
Phys.org
February 25, 2026
AI-Generated Deep Dive Summary
A new study published in the journal *Management Science* reveals that grocery retailers can significantly reduce food waste and boost profits by making smarter operational decisions, particularly when it comes to displaying and pricing perishable items. The research highlights that small changes, such as optimizing shelf layouts, adjusting discount strategies, and managing product displays, can lead to a reduction in spoilage of over 20% while increasing revenue. Unlike previous approaches that relied on expensive technology or consumer behavior shifts, this study emphasizes the potential impact of simple yet effective operational tweaks already within retailers' control.
The study underscores the importance of how perishable goods are presented and when discounts are applied. By strategically placing items in ways that encourage timely purchases without overwhelming inventory, retailers can minimize waste. Additionally, adjusting discount structures to align with product lifecycles—such as offering steeper discounts closer to expiration dates—can help sell more products before they spoil, further reducing waste. These tactics not only improve profitability but also contribute to sustainability efforts by cutting down on food waste, a critical issue in the grocery industry.
From a scientific perspective, this research adds valuable insights into the intersection of operations management and sustainability. By focusing on existing operational levers rather than relying on technological fixes or consumer behavior change, the study offers practical solutions that are immediately actionable for retailers. This approach aligns with broader scientific interests in optimizing supply chains, reducing waste, and promoting sustainable business practices. The findings also highlight how small changes in daily operations can yield meaningful environmental and economic benefits, making them a key area of focus for future research and industry applications.
In an era where food waste remains a pressing global issue, this study provides actionable strategies for retailers to make a tangible difference. By leveraging their existing control over product display and pricing, grocery stores can play a crucial role in reducing waste while enhancing profitability. This dual benefit—combining environmental sustainability with economic efficiency—demonstrates the potential for science-driven solutions to address some of the most pressing challenges in retail and food systems. The study’s insights not only offer practical guidance but also contribute to a growing body of research aimed at creating more sustainable and efficient supply chains.
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Originally published on Phys.org on 2/25/2026