Dutch supermarket giant Albert Heijn is taking a new step towards reducing food waste. This week, they've started a trial with “dynamic discounting” of chicken and fish products at a store in Zandvoort, the Netherlands. Based on various aspects, the supermarket chain will automatically reduce the prices of products. These aspects are the sell-by date, with a higher discount for items that need to be sold soonest.
Albert Heijn developed an algorithm that takes various factors into account. It calculates the best price to eliminate unsaleable products and reduce waste. The algorithm factors include location, bonus offers, weather conditions, historical sales performance and in-store stock. The products are accompanied by electronic price tags that show two prices: the regular price and discount at a specific expiration date.
Anti-waste company Wasteless advised Albert Heijn for the test. Reducing food waste is an important aspect of the sustainability strategy of Albert Heijn. The supermarket chain aims to eliminate at least half of the waste across the food chain by 2030. Other aspects of the sustainability goals concern development projects in Africa and setting up a closed, sustainable and transparent dairy chain with its own farmers.
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