Wasted Food Eats Retailer Profits

The Wall Street Journal: “Grocers, restaurants and food-service companies waste food worth $55 billion a year, according to ReFED, a nonprofit working on food-waste reduction. Food retailers are responsible for food waste worth some $18 billion a year, roughly double the sector’s profit from food sales.”

“More investors are pushing companies to change food-waste and packaging practices that they see as a potential drag on profits in a low-margin business. Many companies are responding. Hilton Worldwide Holdings Inc., Walmart Inc. and other food retailers are working with shareholders who have raised such concerns. Costco Wholesale Corp., Target Corp. and Chipotle Mexican Grill , Inc. have acknowledged similar investor requests.”

“Amazon has struggled for years to profitably deliver groceries in part due to the logistical complexities of shipping perishable items and low customer density outside big cities. Last year, the company eliminated delivery to some ZIP Codes as it also acquired the urban-focused Whole Foods Market chain.”

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