Retail food waste reduction practices: 5 hard truths for 2026

Retail food waste reduction practices are shifting from isolated initiatives to systematic, data-driven surplus reduction across the value chain.

Each year, the food waste working group shares its priorities for the next 12 months. This year, 15 leading grocery retailers across Europe and North America shared their priorities. What emerged, for this cohort of retailers at least, was that they were entering a new phase: moving beyond isolated initiatives toward systematic, data-driven surplus reduction across the value chain.

While individual projects range from AI-driven markdown optimisation to animal-feed backhaul and supplier reporting harmonisation, a clear pattern emerges. Retailers are converging on five core levers to reduce unsold food in 2026, namely, measurement and data, redistribution scale-up, operational discipline in stores, upstream supplier collaboration, and technology-enabled sell-through.

Encouragingly, for this sample of retailers at least, we can see evidence that the industry is tackling the structural causes of surplus — not just managing waste at the end of the chain.

1. Retail food waste reduction practices: from estimates to precision

The single most common priority across the reviewed presentations is improving the accuracy, granularity and usability of food-waste data. Retailers are investing in dashboards, harmonised reporting and SKU-level measurement to enable targeted intervention. For example, one multinational group lists “food waste data improvements/dashboard for food waste reporting” among its top three 2026 priorities, alongside reinforcing operational best practice.

Others are working on “waste-by-weight dashboard completion and wider adoption” and harmonised reporting across multiple countries as key programmes.

2. Redistribution shifts from charity add-on to core process

Nearly all retailers emphasise scaling edible surplus redistribution — but with a notable shift from ad-hoc store activity to standardised, automated app based processes.

Examples include:

• Optimising redistribution workflows and store compliance
• Refining donation programmes and front-of-store collections
• Expanding partnerships with food banks and specialist redistribution organisations

One retailer explicitly prioritises “optimise food redistribution process – automation opportunities and increase store posting [to the app] compliance.

Another aims to “increase the valorisation of surplus products with a focus on community donations and responsible reuse.

3. Operational excellence returns to the spotlight

A second dominant theme is reinforcing store-level disciplines that prevent surplus arising in the first place.

Retailers repeatedly cited the need to improve compliance on:

• Stock accuracy and shelf-life control
• Handling and display standards
• Temperature and cold-chain compliance

Some were looking to simplify store tasks and routines through range simplification and space allocation [to reduce back room inventory]

One retailer is looking to improve strategic alignment internally among stakeholders to optimise supply, simplify the product range, review space allocation and enhance operational efficiency.

Another retailer called out increased communications and training, with a view to reinforcing operational best practices as its top priority.

4. Technology moves from pilot to scale deployment

Technology-enabled sell-through and prediction is now firmly in scale-up mode. Projects highlighted across the retailers include:

• AI-driven forecasting and replenishment
• Algorithmic discount optimisation for short-life items
• Dynamic pricing and markdown automation via ESL’s

One retailer plans on “accelerating the sell-through of short-shelf-life products using algorithms for discount optimisation.”

Another is rolling out replenishment optimisation across “100% of the value chain,” while also testing dynamic pricing and QR-based solutions.

5. Upstream collaboration expands beyond retail walls

A final shared priority is about engaging suppliers and upstream partners to prevent surplus earlier.

Initiatives include:

• Streamlined supplier food-waste reporting
• Joint category focus on high-loss products
• Packaging and shelf-life innovation
• Animal-feed and by-product [normally wasted] valorisation partnerships

One roadmap highlights “streamline supplier food waste reporting process and best practice dissemination”

Others focus on category-specific interventions (e.g., bananas, fresh-to-go) and restarting animal-feed backhaul loops.

Our working group will review retail food waste reduction practices and priorities again in January 2027, click here if you would like to register for that meeting.

In the meantime, the group will meet online every other month and then be together in Oslo for our annual food waste innovation summit on November 24th and 25th, hosted by REMA 1000. This meeting is for retailers only, there is no cost to participate. Click here to learn more and register