Running a grocery business has always meant juggling tight margins, unpredictable demand, and relentless pressure to deliver. Add rising expectations to cut waste and lower emissions, and the balancing act gets even harder.
Margins typically hover around 3%. Yet, it’s estimated that supermarkets throw away 2.5% to 4% of potential revenue each year in surplus food, according to Food Logistics. That kind of loss doesn’t just eat into profits, it puts sustainability and customer trust at risk.
And the root causes? They’re more mundane than malicious. Grocers often overorder to avoid the empty shelves that erode customer satisfaction. They work off instinct, fragmented software, and manual stock checks. The problem isn’t a lack of care, rather it’s a lack of visibility.
AI is helping to