Case study

RI Data creates new model to help retailers reduce food waste

Walmart enjoys increased time-to-value while experiencing a year-on-year reduction in waste.

Waste from unsold items is a long-standing problem facing grocery retailers, with the United Nations estimating that around one-third of all food produced is thrown away – valued at around $1 trillion per year globally. Waste reduction also helps create ethical and commercial advantages for retailers.

Retail Insight Solutions

Waste & markdown

Takeaways

Rapid time-to-value

Year-on-year waste reduction

Brand-new model for waste and markdown activity

Maximised revenue from sold markdown items

Environmental and ethical concerns

In addition to the environmental and ethical concerns, for retailers there is also a financial concern, with waste costing on average between 3% and 5% of sales, rising above 10% in some cases.

Addressing the challenge of markdown

RI, the retail data experts, reduces customers’ overall exposure to waste through addressing the challenge of markdown.

For example, RI has been working with Walmart since April 2017 on multiple fresh food departments across its US store network. The time-to-value has been very fast; with Walmart experiencing an immediate year-on-year reduction in waste as soon as the project began.

Seamless integration

The RI system integrates so seamlessly with Walmart that there are no additional steps, stages or processes for employees to follow.

“We’ve developed a new model for waste and markdown activity that is dynamic and flexible. Markdown prices are automatically flexed to give the customer the best value price for the markdown product, with variable markdown rates depending on all the key factors and influences affecting each product and each store, including seasonality, demand and shopper behavior.

In addition, the model minimizes the volume of unsold stock and maximizes revenue from sold markdown items.”

Paul Boyle

CEO, Retail Insight

Summary

Approximately one-third of all produce is thrown away every year, costing an estimated $1 trillion globally.

Waste costs between 3% and 5% of sales, sometimes rising to as much as 10%.

Since 2017, RI has helped Walmart increase time-to-value and experience an immediate year-on-year reduction in waste.

RI developed a brand-new model for waste and markdown activity that seamlessly integrates with Walmart.

RI Data creates new model to help retailers reduce food waste

Environmental and ethical concerns

Addressing the challenge of markdown

Seamless integration

Summary

Reduce waste, increase time-to-value