British retailer Iceland is deploying AI-powered dynamic markdown technology from Retail Insight to reduce food waste and improve the sell-through of products approaching their expiry dates. The platform will also identify products that may be better suited to donation or redistribution before they reach expiry.
While static discount stickers remain the industry default, they frequently over-discount high-demand items or under-discount slow movers. The frozen food retailer aims to leverage the Waste Insight solution from Retail Insight to calculate optimal markdowns for end-of-life products. The technology considers factors including remaining shelf-life, product type and the likelihood of sell-through, aiming to find the discount level that encourages sales while limiting unnecessary margin erosion.
To achieve an advertised sales recovery in excess of six per cent, the Waste Insight solution combines machine learning with operational data to automate markdown recommendations. The solution reportedly leverages daily sales, stocks, markdown and store data to continuously optimise discount recommendations.
Cutting manual date checks
The system will also help staff to identify products requiring markdowns, reducing the need for manual date checking. Its real-time prompts can direct staff towards items where action is required, hence supporting more consistent operational execution.
Several retailers have deployed this solution over the past years, including Marks and Spencer in the UK or Kroger in the US. With this move, Iceland continues to add to its use of AI in store operations, having introduced a stock optimisation solution from Invent AI earlier this year.
