UK retailer Southern Co-op taps Retail Insight AI powered solution in bid to reduce food waste

Southern Co-op is leveraging WasteInsight from Retail Insight.

Southern Co-op is a regional co-operative with 195 stores in the South of England. It identified the need to optimise markdown processes to cut the volume of food going to landfill while also improving sell-through rates (STRs) on reduced to clear (RTC) produce.  

Southern Co-op was already implementing markdowns on fresh and ambient goods to reduce food waste from its store estate. However, this relied on traditional fixed price markdowns based on time of day, which did not account for factors like volume, weather, or intra-day sales profiles. It resulted in imbalances in STRs of short-life, RTC items, which in turn impacted customer availability, waste levels, and profitability.

It implemented the WasteInsight offering, tapping the solution’s dynamic markdown feature. The product uses cognitive driven technology to analyse a wide range of data points - from product type to seasonality - enabling grocers to calculate a product’s optimal discount price and markdown time to reduce waste while maximising STRs and minimising loss. 

By standardising and automating markdown processes, the solution now gives Southern Co-op more visibility into the impact of markdown decisions, allowing it to analyse and optimise markdowns. It also meant the retailer could track store compliance, ensuring markdowns were being carried out on time and to the correct price.

Last year, through its use of WasteInsight, Southern Co-op says it saved ~3.1 million meals from being wasted, an increase of +16% year-on-year. Simon Eastwood, Chief Operation Officer of Food Retail, commentes: “The markdown process is far more transparent and proactive than it was before.”

“Retail Insight’s solution enables us to steer our markdown strategy toward a more optimised way of working, with clear goals and improved visibility into outcomes.  In-store teams have found it easy and we now have much better visibility of how our store teams are complying with the markdown values and timings, which we did not previously have.”  

Kieran O’Brien, VP Customer Success EMEA at Retail Insight, says: “It’s great to see the strides that Southern Co-op is creating on their path to their waste-free future.  With optimised markdowns, Southern Co-op not only reduces food wastage, stopping perfectly good food entering landfill, but it’s also able to sell more while delivering value to its customers.”

Southern Co-op plans to launch several trials using the solution, including a markdown timing trial to ensure the retailer receives the best markdown window from an operational and performance perspective. It is also looking to conduct several algorithm test pilots to enhance the system and drive performance.

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 3rd July.

This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

Key 2025 dates

Friday, 23rd May: Award entry deadline 

Tuesday, 27th May: 2025 finalists revealed

Wednesday, 28th May - Friday, 13th June: Judging days

Thursday, 3rd July: Winners announced at the 2025 RTIH AI in Retail Awards Ceremony, to be held at The Barbican in Central London.