Grocers use AI to cut food waste and boost profits with targeted markdowns on perishables.

Facing inflation and fierce competition, grocery chains are adopting AI tools like Flashfood to dynamically price perishable items nearing their best-by dates. This strategy helps reduce food waste, traditionally causing billions in losses, by converting potential shrink into revenue through targeted discounts. AI-driven pricing also attracts more shoppers who visit multiple stores for deals, improving traffic and margins without broad price cuts. Kroger and other chains report increased sales and reduced waste, signaling a shift toward tech-enabled, precise pricing to balance affordability and profitability.