Grocery stores that donate expiring food − instead of price discounting or discarding − make higher profits

By John Lowrey, Northeastern University This new food pantry opened on Long Island in September 2024. Alejandra Villa Loarca/Newsday RM via Getty Images All major supermarkets and retailers that sell groceries, such as Kroger, Walmart and Costco, give large amounts of food to food banks and pantries. In 2022, retailers donated close to 2 billion pounds of food across the United States, which amounted to US$3.5 billion that year. The estimated value of donated food was a little less than $2 per pound in 2022. Retailers donate products that are typically packaged, palatable and safe for consumption, yet unsuitable for sale due to quality concerns, such as minor blemishes. Since these items can go a long way to feeding hungry people, donations represent one of the best uses of leftover or surplus food. Donations are also technically acts of charity, and the companies responsible for them get tax breaks. This means that donations boost profits by lowering costs. There’s a second effect of donations on a store’s bottom line: They improve the quality of food on the store’s shelves and increase revenue from food sales. As a supply chain scholar who studies food banks, I worked with a team of...