Abstract
Food waste in grocery retail is a major sustainability challenge, particularly for about-to-expire perishable products where pricing decisions involve a trade-off between waste reduction and profitability. This research project presents evidence from a large-scale field experiment conducted in partnership with a leading supermarket chain in Hong Kong to evaluate alternative clearance strategies for about-to-expire items. We implement a randomized controlled trial across 56 stores, testing three operational interventions: (i) deeper price markdowns on about-to-expire perishable products, (ii) bundle-based incentives that provide additional discounts when consumers purchase multiple units of the same about-to-expire item, and (iii) changes in in-store display that increase the visibility of about-to-expire fresh produce by consolidating these items in designated locations. The experiment targets high-waste categories including fresh meat, seafood, fruits, and vegetables, and is executed under real-world retail constraints with detailed measurement of sales, inventory, and waste. The analysis aims to quantify the causal effects of pricing depth, purchase incentives, and product salience on demand, waste reduction, and profits, with the goal of identifying scalable operational rules that reduce food waste without compromising retailer margins.