“Actually, it makes sense. Supermarkets that donate food to the poor make more profit September 28, 18:30 Share: It is more profitable for supermarkets to donate food than to throw it away (Photo: pixabay) Author: Kira Borysikhina A new study claims that grocery stores that donate expired food, that pop up make more profit than those who cut prices or throw away food. Read also: Three Ukrainian supermarkets entered the list”, — write on: ua.news
It is more profitable for supermarkets to donate food than to throw it away (Photo: pixabay)
Grocery stores that donate expired food make more profit than those that cut prices or throw food away, a new study says.
In 2022, retail chains such as Kroger and Walmart will donate nearly one billion kilograms of food to food banks, worth $3.5 billion. Not only do these donations help the poor, but they also allow the stores to get tax breaks, increasing profits.
The study found that stores that regularly donate food can fill their shelves with fresh products more quickly, which increases the quality of the products presented.
This helps to improve the store’s image and increase revenues. Using sales data from 21 retail stores, researchers found that product donations increase the average price by 1%, resulting in a 33% increase in profits. In an environment where supermarkets’ profit margins rarely exceed 3%, such growth is significant.
Donations also help reduce food waste. In the US, up to 40% of products are thrown away throughout the supply chain. By donating food, stores not only support those in need, but also increase their bottom line, making this practice both socially and economically beneficial.