In the retail industry, the disposal management of perishable goods with close expiration dates poses a significant challenge.
According to recent research conducted by Friends of Earth, the four major supermarkets in Hong Kong discard 87 tonnes of food daily into landfills, contributing to environmental concerns. Given consumers prefer to purchase products with later expiration dates, managing the storage of perishable products and selling them out with uncertain demand, short shelf lives, and last-in-first-out customer behaviour is challenging. Retailers are exploring solutions like transshipment, where unsold goods move from one store to another.
Research indicates that implementing transshipment can increase profits and reduce waste. However, the inconsistent incentives for store managers and the need for process changes must be addressed. Achieving a balance between waste reduction and business interests remains a central challenge for the retail sector.