Smarter Pricing, Less Waste: How AI is Changing Supermarket Shelves

Australian supermarkets are facing a long-standing challenge—reducing food waste without compromising profits. But a new tech-driven solution may finally offer both: AI-powered dynamic pricing.

Israeli startup Wasteless has developed a smart pricing system that helps grocery stores reduce food waste by automatically adjusting prices based on product expiry dates. Rather than relying on manual markdowns or static discount stickers, this system uses electronic shelf labels that respond in real time to inventory levels, expiry windows, and customer behaviour.

How It Works

Imagine walking past a Caesar salad with three different price points depending on its “use by” date. A pack expiring in two days might be $1.70, while one with a longer shelf life could be $3.40. The system behind these changing prices is powered by machine learning algorithms that assess how quickly products are selling—and how much of a discount is needed to move them.

If a small discount doesn’t prompt a sale, the price will drop again—sometimes up to four times a day—until the item reaches a price that matches demand.

Real Results for Retailers

Retailers already using Wasteless have seen food waste drop by nearly 40%. At the same time, the system helps increase revenue by turning items that would otherwise go unsold into low-margin wins. Customers benefit too, getting fresher food at better prices without the need to hunt for yellow clearance stickers.

The technology is already being rolled out across Europe, and adoption is picking up in the US. More than 70% of American retailers are now preparing to implement electronic shelf pricing, with one major chain reportedly saving $1.4 billion annually in reduced waste from expired goods alone.

What This Means for Australia

As the retail landscape becomes more data-driven, AI-based pricing tools are set to become standard in Australian supermarkets. Beyond reducing food waste, these tools offer better inventory visibility, improved customer satisfaction, and new ways to compete on both value and sustainability.

At RetailCare, we’re closely tracking innovations like Wasteless that align with the future of omnichannel retail. Dynamic pricing isn’t just a trend—it’s a smarter way to sell.

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