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Fresh Foods Category Team Uncovers $52M in Waste with Engine’s Shelf Optimization
Challenge
A leading fresh foods category team at a major retailer faced the difficult task of determining the optimal number of facings for perishable items with very short lifespans.Too few facings could lead to stockouts and missed sales opportunities, while too many risked excessive waste and inefficient use of valuable shelf space.The team needed a data-driven solution to balance these competing priorities.
Solution
Using Engine’s Assortment and Planogram solutions, the fresh foods category team analyzed sales data, shipment trends, and stock rates to maximize the ROI of their shelf space while minimizing waste.
Engine’s predictive data model evaluated 15 million store-item combinations, analyzing historical sales, full distribution patterns, restocking frequency, and product shelf life to calculate the probability of items expiring before sale.
Results
$52M in annual markdown losses identified across hundreds of stores
providing a clear opportunity to reduce waste and reallocate valuable shelf space.
Identified recurring markdown and stock issues at store level
allowing for precise interventions to minimize lost sales and excess inventory.
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Download the full case study
Get the extended analysis with deeper insights including:
- Store-level findings across hundreds of locations
- Regional demand patterns driving stockouts
- Compliance challenges impacting performance
Findings:
📌 400 stores were actively adjusting inventory levels to reduce waste, ignoring higher mod allocations.
📌 300 stores were following recommended allocations but experiencing high markdown losses due to overstocking.
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