Do promotions affect the quantity of surplus food at retail? Evidence from an Italian case study

This study explores how promotions affect the food waste at retail stage in Italy. Retail food waste accounts the 7.7% of total food waste in Europe, and fruit and vegetable products are the most wasted. Although retailers contribute with a smaller percentage on generation of waste, they influence the whole chain. This study explores the impact of promotions on the generation of surplus for fruit and vegetable products, using data from two large supermarkets collected from 2016 to 2021. The dataset includes records on purchases, sales, and promotions. In the analysis, products are grouped in families, the surplus rate is calculated as the amount of products that is purchased in excess with respect to sales, expressed in percentage, and it is then compared across promotional and non-promotional weeks. Results show that the relative rate of surplus during non-promotional weeks is 11.3%, while during promotional weeks is 8.3%. During promotional weeks, the surplus increases in absolute terms, while the rate of surplus with respect to purchases decreases, suggesting a positive effect of promotions to reduce generation of surplus. High perishable products see more significant difference between promotional and non-promotional weeks.