The wide range of products displayed on supermarket shelves represents only the visible part of a much larger system on which our economy depends. Behind these shelves, however, lies one of the most pressing challenges within the food production and supply chain – the high level of food loss and waste. The energy and resources invested in producing, transporting, and storing food are often lost inefficiently, while tons of perfectly edible products ultimately end up in landfill. Retail holds a particularly important position in this process, as it is at this stage of the supply chain that product value, consumer choice, logistical efficiency, and the risk of waste generation intersect most clearly.
From the perspective of the circular economy, reducing food waste is not simply a matter of environmental responsibility. It is also about using resources more efficiently, preserving value already created within the system, and introducing mechanisms that allow products to retain their economic and social function before becoming waste. This principle increasingly guides German and Austrian supermarket chains, which no longer treat food waste reduction as an isolated initiative but rather as a practical and multifaceted strategy.
The Commercial Potential of Aesthetically Imperfect Products
A significant share of food loss occurs because products fail to meet aesthetic standards. Fruit and vegetables with irregular shapes, sizes, or appearances are often deemed commercially unsuitable, even though their nutritional value and quality remain fully intact.
This challenge is being addressed through initiatives that create a pathway for imperfect products to return to the market. One clear example is REWE Group’s successful “Wunderlinge” initiative, through which the company sources and sells fruit and vegetables from farmers whose produce does not meet strict market standards due to visual imperfections, despite remaining entirely valuable in nutritional terms. By doing so, the company challenges the stereotype that quality is determined by appearance. Practices of this kind significantly reduce the losses that arise in the supply chain before food even reaches supermarket shelves.
Copyright: © Robert Harson
A similar approach can be seen in BILLA’s “Saving the Good” campaign. Within this initiative, visually imperfect yet fresh, high-quality, and healthy fruit and vegetables are grouped into special packages and offered to consumers in this form. This practice is effective in two important ways – it prevents food from becoming waste, while also reinforcing the idea that the true value of food lies in its nutritional quality and usefulness rather than in strict compliance with visual standards. From a circular economy perspective, this approach helps optimise the resources invested in agricultural production.
Copyright: BILLA / Harson
Discounting as a Waste Prevention Tool
One of the most practical ways to reduce food waste in retail is the timely markdown of products. When food is approaching its expiry date, price adjustments that help accelerate sales are often far more effective and rational than prolonged storage or eventual disposal.
A well-known example of this approach is Lidl’s “Ich bin noch gut” initiative, meaning “I am still good.” Under this concept, stores allocate dedicated space to products that are nearing the end of their shelf life but remain fully suitable for consumption. These products are offered at reduced prices, creating a more affordable option for consumers while also increasing the likelihood of sale.
The main value of this approach lies in the fact that it prevents waste at one of the most critical stages. Food that might otherwise have ended up in landfill within a day or two remains in circulation and continues to fulfil its intended purpose.
Copyright: Lidl
Managing Surplus Food through Digital Platforms
Digital platforms are playing an increasingly important role in food waste reduction by creating new connections between businesses and consumers. In Austria, for example, BILLA works in partnership with the Too Good To Go app. Through this collaboration, consumers can purchase so-called “surprise baskets” containing unsold but fully edible products left over at the end of the day. These baskets may include items from different categories, such as bread, fruit, vegetables, and ready-made meals. The model effectively combines financial benefit with environmental responsibility.
BILLA gradually expanded this cooperation by involving more locations, which indicates that the model is no longer viewed as a one-off experiment, but rather as an increasingly established operational practice. In essence, products that might otherwise have been treated as losses are able to find consumers once again and retain their value within the system.
Copyright: BILLA / Harson
Partnerships That Create Social Value
Reducing food waste is not limited to commercial mechanisms alone. When products can no longer be sold, their redistribution for charitable purposes becomes especially important. In this regard, REWE Group’s cooperation with food banks and other community organisations is particularly notable.
Such partnerships clearly demonstrate that edible food should never be viewed simply as waste. When managed properly, it becomes a resource that can play an important role in social support. This is a particularly significant dimension of the circular economy, which seeks not only to prevent physical waste, but also to preserve value in ways that respond to social needs. Waste reduction in the retail sector becomes even more effective when it extends beyond the internal optimisation of a single company and is supported by broader partnership networks.
Copyright: REWE Group / Robert Harson
Consumer Behaviour as Part of Systemic Change
No food waste reduction strategy can be fully effective without a corresponding change in consumer behaviour. For this reason, supermarkets are increasingly seeking to explain what expiry dates actually mean, why visually imperfect products should not be rejected, and how responsible choices can become part of everyday life.
Ultimately, the effectiveness of any operational mechanism depends on consumer decisions. This is why supermarkets are increasingly assuming a broader social role, acting as mediators that help reshape public understanding of the real value of food and promote more sustainable patterns of consumption through everyday communication.
Towards a More Responsible Economy
The experience of German and Austrian supermarkets shows clearly that reducing food waste requires a complex and systemic approach. It involves the entire chain, from product selection and inventory management to discounting strategies, digital platforms, and social partnerships.
At the heart of responsible resource use lies one key principle: a product should only be considered waste once all alternative pathways have been exhausted. Until that point, it retains its economic, consumer, or social function. This is also one of the core principles of the circular economy, which aims to keep products in use for as long as possible and preserve their value within the system. Resource efficiency does not end at the stage of production; it continues actively in retail through the joint efforts of businesses, consumers, and partnership networks. In this sense, food loss management is not only an environmental challenge, but also an essential condition for building a more efficient, responsible, and sustainable economy.
