Opinion: Steve Hewitt
Steve Hewitt, co-founder of 40 Percent, highlights the wide-reaching impacts of food waste in retail and offers expert advice on how independents can cut losses and contribute to a more sustainable food system.
Food waste is a growing crisis that extends beyond environmental concerns – it’s a financial drain on businesses. Globally, around 40% of food produced goes to waste, contributing to 8-10% of greenhouse gas emissions. In the UK, retailers large and small play a significant role in the issue. Every unsold product represents lost revenue, increased disposal costs and missed opportunities to create value.
For retailers waste reduction isn’t just about sustainability, it’s about profitability. Margins are already tight and food waste eats into profits. While some loss is unavoidable, much of it stems from inefficient inventory management, poor demand forecasting and missed opportunities to redistribute surplus.
Independent retailers, however, often perform better than large chains when it comes to waste reduction. Where supermarkets typically see 2-6% of their sales lost to waste, indie stores keep this figure between 1-3%, largely because they have more control and can react quickly to shifting customer demand.
Challenges of zero-waste retail
In recent years zero-waste retail concepts have gained traction, particularly in the natural and organic food sector. Refill stations and compostable packaging have made significant strides in reducing single-use plastics, but packaging is only one piece of the puzzle. The challenge of food waste goes beyond how products are presented; it’s about what happens to unsold items.
A store can be plastic-free but still generate excessive food waste if it doesn’t have the right processes in place. Fresh produce, bakery items and chilled goods are particularly vulnerable. Without strong demand forecasting, purchasing controls and redistribution strategies, even the most well-intentioned businesses can struggle to minimize waste. Simply removing packaging does not address the root cause of overordering, expiration mismanagement or surplus stock disposal.
Strategies for retailers
The most effective way to reduce food waste is to prevent it before it happens. Smarter inventory management is crucial – overordering is one of the biggest culprits of food loss. By tracking stock levels accurately and adjusting orders based on demand, retailers can avoid excess before it becomes a problem. Forecasting plays a vital role in this, ensuring that stock levels match what customers actually want, rather than relying on guesswork or supplier-driven ordering patterns.
“A store can be plastic-free but still generate excessive food waste if it doesn’t have the right processes in place.”
Logistics also impact food waste. Deliveries should align with demand, rather than being dictated by rigid supplier schedules. In-store management is just as important; customers tend to grab the freshest products first, leaving older stock behind. Proper rotation can make a huge difference.
Strategic discounting is another key tool. Price reductions at the right time can ensure products sell before they become waste. On average, about 70% of markdown stock is still sellable so timing is everything. Rather than slashing prices at the last minute, structured reductions throughout the shelf life of a product can improve sales while minimizing losses.
Handling surplus stock
Even with the best waste-reduction strategies, some products won’t sell in time. When this happens, the priority should be keeping food in the supply chain for as long as possible. Donations to charities, employees or community groups is the most effective way to ensure food serves its intended purpose. Many retailers find that well-structured donation partnerships not only reduce waste but also enhance their reputation with customers who value social responsibility.
If donation isn’t viable, repurposing food for animal feed is another effective solution, keeping food within the system rather than sending it straight to disposal. As a last resort, anaerobic digestion is preferable to landfill, but it still represents a lost opportunity compared to keeping food edible.
Retailers who take a structured approach to surplus management can turn waste into positive brand engagement. Many customers actively support businesses that are committed to reducing food waste and supporting local charities, making redistribution efforts a win-win for businesses and communities alike.
Finding balance between availability and waste
A key challenge for retailers is maintaining full shelves without overstocking. Customers expect a broad selection, but excess stock inevitably leads to waste. Balancing availability with waste reduction requires a well-planned approach.
Structured markdowns, clear donation strategies and partnerships with food redistribution schemes can help businesses minimize waste while ensuring customers always find what they need. Rather than overstocking to create an illusion of abundance, smart reductions and real-time inventory adjustments can help stores maintain availability without unnecessary losses.
The business case for waste reduction
Tackling food waste isn’t just an ethical obligation, it makes solid business sense. Retailers that actively manage waste see significant cost savings, improved profit margins and stronger customer loyalty. With more consumers prioritizing sustainability, waste-conscious businesses stand to gain a competitive advantage.
At 40 Percent, we work with retailers to implement waste-reduction strategies that align with their business goals. Whether through advanced forecasting tools or simple in-store fixes, we help them turn waste into opportunity for profit and positive impact.
Food waste is not an inevitable cost of doing business. With the right strategies in place, retailers can cut losses, boost profitability and contribute to a more sustainable food system. The future of retail isn’t just about selling more – it’s about selling smarter.
By Steve Hewitt, co-founder, 40 Percent