MODULE 4A: SUPERMARKETS – FROM THEORY TO PRACTICE

Management of products close to their expiration date

Several proven strategies can be employed to minimise food waste and effectively promote and sell products close to their expiration date. Selling more of these products reduces waste and maximises their value. The most valuable practices for promoting and selling food products close to their expiration date include employing dynamic pricing models, creating appropriate promotions, and offering customised product tips. Additionally, enhancing in-store displays and product management, implementing advanced distribution technologies, and adhering to food safety guidelines are essential components of this strategy. These practices aim to optimise sales, reduce waste, and ensure that products nearing the expiration date are utilised efficiently.

Dynamic Pricing Models

Implement dynamic pricing models to adjust the prices of near-expiry products based on expiration dates, demand, and market conditions. This can stimulate sales and reduce the likelihood of products going to waste.

An example of dynamic pricing models in managing products close to their expiration date could involve adjusting the prices of perishable items based on their remaining shelf life and demand. For instance, a supermarket could implement a dynamic pricing strategy for products nearing their expiration date, where the prices are gradually reduced as the expiration date approaches. This approach aims to incentivise customers to purchase these items before they expire, thereby reducing the likelihood of food waste. Additionally, dynamic pricing models may also consider external factors such as market conditions, seasonal demand, and inventory levels to optimise pricing and minimise waste.

Appropriate Promotions

Create targeted promotions for near-expiry items. This can include special offers, bundle deals, or discounts tailored explicitly to products close to their expiration date. Promotions should be prominently displayed to attract customer attention. Strategies for items nearing expiration:

“Buy one, get one free” offers to encourage bulk purchases.

Discounted bundle deals to move more products quickly.

Time-limited special offers to create a sense of urgency.

Promotional materials that highlight nutritional benefits or unique qualities to make the items more attractive.

Customised Product Tips

Offer customised product tips to customers, such as recipe suggestions, storage recommendations, and usage ideas. This adds value to near-expiry products and increases their appeal to customers. For instance, if a supermarket has a surplus of ripe bananas that are nearing their expiration, they can offer recipe tips for making banana bread or smoothies. Additionally, providing storage recommendations, such as advising customers on how to extend the shelf life of these bananas by freezing them, adds value to the products and increases their appeal to customers. Furthermore, offering usage ideas, such as creative ways to incorporate near-expiry products into meals or snacks, can enhance the perceived value of these items and encourage customers to purchase. These customised product tips contribute to reducing food waste and provide a positive and helpful shopping experience for customers.

Freeze cut bananas to use them later for smoothies
Make Ice cream
Banana Milk Ice Cubes
Make Banana Milk
Banana Mug Cake

> https://youtube.com/shorts/-aJoRvFAwWc?feature=shared

Training and Communication

Train staff to effectively communicate the value and benefits of near-expiry products to customers. Staff should be knowledgeable about the products and equipped to address customer concerns about purchasing items close to their expiration date. Focus on enhancing customer engagement.

Inventory and Adjustment

It is important to regularly monitor the sales and condition of products nearing their expiration date. By actively tracking the sales performance and condition of perishable items, supermarkets can gain insights into the demand for specific products, their shelf life, and customer preferences. This data-driven approach enables businesses to adjust pricing and promotions in response to real-time information, ensuring that products are effectively marketed and sold before reaching their expiration date.

The adjustment aspect involves utilizing real-time data and customer feedback to make informed decisions regarding pricing and promotions. For instance, if certain products are not selling as expected, adjustments can be made to their pricing or promotional strategies to stimulate customer interest and facilitate sales.

Inventory software can track and manage items in grocery stores using technologies like barcodes, RFID, electronic shelf labels, scanners, and POS systems.

Further Reading:
5 Best Grocery Store Inventory App and POS Solutions

10+ Best Grocery Inventory Management Software for Groceries Stores & Supermarkets

Preventing food waste during food storage

In this chapter, we address a crucial aspect of supermarket operations – preventing food waste during food storage. As an integral part of the supermarket team, your understanding and implementation of effective food storage practices are essential in reducing waste and maximizing profitability. By following the guidelines and strategies outlined in this chapter, you will be equipped with the knowledge to play a significant role in minimizing food waste while enhancing the overall efficiency of your operations.

Demand Planning

To effectively manage the inventory of perishable items, you can utilize data analytics and market insights to forecast demand accurately. This approach empowers you to implement demand-driven inventory management, ensuring that stock levels are closely aligned with anticipated customer needs. Additionally, you can collaborate with suppliers and distributors, using your demand forecasts to streamline the supply chain process. This collaboration is key to maintaining an efficient flow of fresh goods to the store, minimizing waste, and ensuring that the products customers seek are readily available.

Advanced Distribution Technologies

To maintain the quality and freshness of perishable goods, it is highly recommended to utilise temperature-controlled storage and transportation systems. This critical step ensures that items are kept at optimal conditions throughout their journey to the store. Furthermore, implementing real-time tracking and monitoring of inventory is essential to minimize product spoilage and optimize distribution routes. This allows for timely decisions on stock replenishment and distribution, ensuring that goods are always fresh upon arrival. Additionally, leveraging automated inventory management systems is vital for the efficient handling and rotation of perishable items. These systems help in maintaining first-in, first-out (FIFO) practices, reducing the risk of items expiring before they are sold, and thus, improving overall customer satisfaction with the quality of goods offered.

In-Store Displays

The design of in-store displays plays a critical role in optimizing the shelf-life and sales performance of perishable goods. By strategically managing product placement and presentation, you can significantly reduce food waste. This involves optimizing the layout of product displays for better air circulation and visual appeal within the store.

Employing smaller displays can also make a big difference, creating a visually appealing and manageable presentation of perishable items. This strategy not only enhances the aesthetic appeal but also ensures items are rotated more frequently, thereby reducing the chances of them expiring before sale. It also aids in better inventory management by minimizing the risk of overstocking and consequently, food waste.

Moreover, improving air circulation is another key factor in maintaining the quality and freshness of perishables. Proper ventilation and temperature control are crucial in extending the shelf-life of sensitive items like fruits and vegetables. By fostering an environment that preserves the quality of these items, you can cut down on spoilage while simultaneously heightening the attractiveness of the products to customers, which in turn can boost sales performance.

Video:

Corner Store Training: Creating an Attractive Produce Display in Your Store

The “FIFO” Method

The FIFO method, or “First In, First Out,” is a popular stock rotation strategy applied in inventory management. It works by ensuring that the oldest stock (first in) is sold or used before the newer stock (first out). This technique is particularly useful in the management of perishable goods as it reduces the risk of having to throw away items due to expiration. By consistently selling the oldest products first, supermarkets can maintain the freshness of their inventory and minimise food waste.

Literature

“Inventory Management 101: How to Manage Small Business Inventory” https://www.shopify.com/blog/inventory-management
“First In, First Out (FIFO)” https://www.investopedia.com/terms/f/fifo.asp
U.S. Food and Drug Administration (FDA): “Retail Food Protection: Employee Health and Personal Hygiene Handbook” https://www.fda.gov/food/retail-food-industryregulatory-assistance-training/retail-food-protection-employee-health-and-personal-hygiene-handbook

Presentation

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Module 4a – Supermarkets – From theory to practice