Photo: Anna Shvets/Pexels
A team of researchers has found that grocery stores that remove items about to expire, donate them to food banks and fill up the space with fresher inventory, get more revenue from sales and earn higher profits. Although millions struggle to find their next meal, close to 40% of food gets thrown out along the supply chain. The researchers found that food donations can increase average food prices by up to 1%, which corresponds to a 33% increase in profit margins. Profit margins for supermarkets and other food retailers typically hover below 3% so even a small increment in food prices can translate into higher profits for retailers. At the same time, increasing the volume of retail food donations would get more food to people who need it, limit hunger and reduce food insecurity.
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