Food Retailers Overstock Food

This is my first article on retail since I haven't written in here as much or maybe a couple of months ago. Now that I am here I am wondering what it is that I will be talking about. Well, here it is. I will be talking about what most food retailers often do to promote the waste of food in their stores. That is they overstock their food or shelves with food and I have to say that it is a waste of food in a way since the items can sit in the shelves, freezers and coolers for months and maybe even years.

Why they do this I will never know but what I do think is that maybe the management makes the assumption that many customers will buy the items from their stores or they may think that most customers will end up needing the stock on the shelves but that isn't always the case at all. I say this because what ends up happening is that most customers end up buying different items in the store and pay for them. Also, customers buy only the things they will need.

So I would say that overstocking shelves doesn't make a lot of sense but I see this all the time when I work. Of course there are most times when food retailers understock their shelves and that isn't very good either but that is a rarity. Overstocking items is a major problem in itself due to the lack of demand for most products. It becomes a waste of resources for the food companies that make these products that sit in the shelves in most stores for months.

Let's not forget the costs that these food manufacturers spend in making these food products because they have to use these resources or commodities like wheat, oil and gas to make these foods or products they sell and that can take a lot to do if this is how the cycle of food manufacturing works. It seems to me like a lot of work and production for the whole food industry to do if that is the case. If it isn't then let me know by leaving your comments at the bottom of this article and I will be back next month with another retail entry.

Phillip J. Clayton

Brand consultant | Strategic advisor | Brand & Marketing Design Judge: pac-awards.com | Writer | Art & Design | Advertising | Creative Director

3 年

"Surplus stock" can hurt profitability that's first and foremost. Overstocking is a result of information deficit on the retailer's side, especially with the Covid-19 pandemic. A problem maintaining inventory is usually because a store owner cannot answer "Who is our customer and “Are they a repeat customer?” Not being able to differentiate betwneen new and repeat customers and their purchases, means the possibility of the data source having a hole when it comes to stocking is a reality. There are variables that take place, especially in the Christmas season and depending on the economic year. However, there should be a true and general idea if not a specific one of how many customers to expect regarding inventory management.

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