Food loss and waste are a global crisis. Learn the facts, the local picture for Australia and New Zealand, and practical retail actions, such as smarter markdowns, expiry-based automation and waste visibility, that reduce loss, protect margins and support verified sustainability goals.
The scale of the problem — fast facts you can use in a boardroom
Global estimates reveal the significant scope of the opportunity. In 2022, about 1.05 billion tonnes of food were wasted in households, food services and retail combined, roughly 132 kg per person globally. This accounts for almost one-fifth of the food available to consumers and has significant climate and economic impacts.
Food loss and waste also drive emissions. Estimates put food loss and waste at about 8-10% of global greenhouse gas emissions, and the annual economic cost is measured in the hundreds of billions of dollars.
In Australia, the national baseline sits around 7.6 million tonnes of food wasted each year. This is both an environmental issue and a financial burden to households and businesses.
In Aotearoa, New Zealand, recent surveys estimate the annual value of household and retail food waste at about $3.2 billion, with households reporting significant weekly losses. This is a local problem of scale that retailers can directly influence.
Why this matters to retailers: UNEP’s analysis shows that retail is responsible for a significant portion of consumer-level waste. Reducing waste improves margin, strengthens supply chain resilience, and supports corporate sustainability commitments that customers and regulators increasingly expect.
Where retail can move the needle
Retailers are at a critical junction between supply and consumption. Small changes in how stock is tracked, priced and moved through the store produce measurable reductions in waste and improvements to gross profit. Practical interventions that work include:
1. Waste visibility — measure what you want to change
Start by tracking waste by category and by reason. For example, tracking discarded meat portions separately gives clear insight into which SKUs, pack sizes or storage practices are driving loss. Once waste is a measured KPI, it can be managed, reported and reduced.
2. Smarter markdowns — automate by expiry and stock level
Manual markdowns are slow and inconsistent. Automated markdown rules that use expiry dates and real-time stock levels move food from shelf to sale before quality declines. That protects margin and customer trust while reducing bin volumes.
3. Integrate operational systems to act faster
When point-of-sale, inventory, and waste-tracking systems communicate with each other, you can automate decisions, such as targeted promotions, staff alerts for short-dated high-value items, and redistribution to food rescue partners where appropriate.
SATO solutions that help retail convert surplus into service, not landfill
Practical technology is available today that enables retailers to implement the three priority actions above. Some examples that are practical for Australia and New Zealand operations:
Track discarded meat portions for better waste visibility
Use integrated tagging, weighing, and scanning workflows to track waste at the SKU and batch level. This data identifies problem SKUs and supports root cause fixes such as pack-size change or storage adjustments.
- FX3-LX + scale integration
- What it does: Connect an FX3-LX standalone label printer to a back-of-house scale so every weighed trimming, discarded portion or sellable cut prints an expiry/traceability label in real time.
- Why it helps: Weighing and labelling at the point of trim/discard creates reliable, timestamped waste records and links the weight of discarded product to SKU and batch information. That produces objective KPIs for meat yield, operator performance and supplier quality.
- Pilot KPI: Run for 4 weeks on deli/meat counter: measure kg discarded per SKU, and reduction in avoidable discard after three corrective actions (target 10 to 20 per cent reduction).
- Handheld scanners + waste logging workflow
- What it does: Staff scan discarded items and select reason codes on a handheld device, creating a record that flows to the cloud.
- Why it helps: Immediate digital capture reduces underreporting and supports root-cause analysis.
- Pilot KPI: Per cent of discard events logged vs estimated baseline; top 5 SKUs by discard weight.
- SATO Synergy or cloud aggregation
- What it does: Aggregates scale prints and scanned waste events into SKU-level reports and dashboards.
- Why it helps: Central view links discard weight to sales, enabling targeted interventions.
Automate markdowns by expiry dates and stock levels
Combine expiry-aware labelling and inventory alerts with POS-driven markdown rules to automatically promote near-expiry stock, reducing losses and protecting revenue.
- Scan-to-auto-calculate markdown workflow
- What it does: Scan near-expiry items to trigger a system calculation that auto-recommends or applies a discount based on expiry date and current stock level. This can be done through handheld devices connected to the SATO Synergy cloud-based web app.
- Why it helps: Removes human delay and inconsistency, ensuring markdowns happen at the most effective time to maximise sell-through.
- Pilot KPI: Increase conversion of near-expiry SKUs by X% and reduce expired unsold volume by Y% over 6 weeks.
- PW2NX / PW4NX mobile printers for shelf-edge markdowns
- What it does: Print discounted price labels instantly at the shelf once a markdown is triggered by the scan or expiry rule.
- Why it helps: Eliminates the time gap between decision and visible price change.
- Pilot KPI: Average time from markdown trigger to label on shelf (target < 5 minutes).
- CL4NX / CL6NX back-of-house printers + expiry labels
- What it does: Print accurate expiry and batch labels during receiving and repacking, so expiry data is available to automation rules.
- Why it helps: Automation depends on accurate expiry rules and product data; these printers feed that data reliably.
- CT4-LX item-level RFID for stock accuracy
- What it does: Rapidly validate actual on-shelf counts so markdown automation uses accurate inventory data.
- Why it helps: Reduces false positives/negatives in markdown triggers due to miscounts.
Cut losses while supporting sustainability goals
Measured reductions in waste can be reported in sustainability disclosures without the risk of greenwashing. Use objective operational metrics, third-party verification for diversion to food rescue, and clear before-and-after KPIs.
- WS4 / WS2 / FX3-LX series for redistribution and traceability
- What it does: Print expiry-stamped pick and redistribution labels for parcels destined to food rescue partners or redistribution channels.
- Why it helps: Ensures partner receives correct batch and expiry info, reducing risk of rejected donations and enabling verified diversion metrics.
- Pilot KPI: Number of meals diverted and per cent of diverted parcels accepted by partner without return.
- Consumables & local manufacturing (recyclable, linerless options)
- What it does: Supply durable, cold-chain-capable labels and recyclable or linerless media where appropriate.
- Why it helps: Reduces label failure in cold-chain conditions and supports verified sustainability claims without greenwashing.
- SATO Synergy — verified diversion reporting
- What it does: Store diversion and redistribution metrics pulled from pick labels, FX3-LX scale prints and waste logs to create auditable KPIs.
- Why it helps: Let retailers publish transparent, measurable outcomes such as tonnes diverted or meals rescued, not vague claims.
- PW2NX for rapid price recovery on near-expiry stock
- What it does: Immediate shelf labels support rapid conversion of near-expiry products to sale.
- Why it helps: Reduces unsold expiry and protects margin while supporting sustainability by reducing waste.
These are practical, measurable steps that align with the national efforts in Australia and New Zealand to halve food waste by 2030 and to reduce food going to landfill. For retailers, the business case is straightforward: lower waste, healthier margins and stronger customer trust.
Avoiding greenwash — how to communicate honestly
If you commit to waste reduction, make claims you can substantiate with data. Avoid using vague language like “we reduced waste” without providing context. Instead:
- Publish the measurement approach and baseline.
- Report specific KPIs such as tonnes diverted, percentage reduction in near-expiry write-offs, or number of meals rescued.
- Work with accredited partners for food rescue and recycling and publish verification.
This protects brand reputation and builds long-term customer trust.
Quick checklist for retail leaders — first 90 days
- Start measuring waste by SKU, reason and location.
- Pilot automated expiry markdowns in 2 to 5 stores.
- Integrate labelling/expiry data with versatile and cost-friendly tracking software like SATO Synergy to trigger promotions.
- Partner with a local food rescue charity for short-dated edible stock.
- Share verified results internally and externally with clear KPIs.
Conclusion — retailers can change the story
Food loss and waste is high, but it is solvable. Retailers have immediate levers, such as pricing, labelling, stock visibility, and redistribution, to reduce losses, improve margins, and contribute to national targets in Australia and New Zealand. If your team is ready to pilot expiry-aware markdowns, automated stock triggers or granular waste tracking, SATO Oceania can help design the operational workflow and supply the labelling and tracking tools that make measurable change possible.
Want help turning your waste data into margin recovery? Contact SATO Oceania to discuss a pilot that fits your stores and your sustainability targets.