There are a lot of aspects of the grocery industry that contribute or can be detrimental to a grocer’s bottom line. One possible cause of loss that must be constantly monitored and thought through is waste as a result of food spoilage. These losses occur primarily in the produce, deli, and dairy departments of a store. Even with refrigeration and other preservation methods, grocers must carefully consider how to minimize lost profits from the spoilage of perishable foods.
One of the most basic ways to prevent financial losses from spoilage is to look closely at the demand of perishable items at a specific store. If your store is frequently left with large amounts of strawberries but avocados always sell out, then it would be prudent to decrease the supply of strawberries you offer and increase the availability of avocados. You may even find that certain brands of lunchmeat or dairy are poor sellers for you, making the decision to cut down on those items easy.
You can also utilize sales and discounts. Customers love fresh bakery items, but they’ll also be drawn to pastries a few days old if they’re less expensive. The same thing can be done with deli meats, cheeses, and fish by the pound. No matter how careful you are, though, you’ll still have unexpected losses. According to Irving Weber Associates, every grocer should have an insurance policy that protects against food spoilage for such events.