Search Results

    Secondary Resellers

    Diversion Potential:
    167K Tons

    Economic Value Per Ton:
    $218

    GHGs Reduced:
    510K Tons

    Water Saved:
    58B Gallons

    Definition

    Opening retail stores and creating dedicated market environments to sell discounted groceries sourced from food manufacturers and distributors

    Challenges

    • Businesses benefit from reliable product procurement and must understand trends in manufacturing and distribution to anticipate changes in market supply
    • The discount grocery industry has low margins, requiring reliable demand and efficient operations to achieve a profit.
    • The build out of a typical retail store and initial losses during the first year of launch typically require a multi-million dollar investment per store.

    Stakeholder Actions

    • Stores can scale slowly to improve their understanding of consumer demand and local needs to identify how to efficiently grow.
    • Government and foundation loans can help secondary resellers expand to lower-income neighborhoods with less access to fresh foods, thus helping to address higher food insecurity; nonprofits can lend expertise in analyzing these regions.

    Examples & Resources

    • Grocery Outlet’s 225 retail stores, based primarily on the West Coast, work with manufacturers to understand their particular waste issues (the top reason is short-coded products near expiration) and come up with a custom distribution path.

    • Daily Table, located in Dorchester, Mass., is a not-for-profit retail store offering fresh, healthy "grab-n-go" meals and other grocery items at a bargain price. These bargain deals are available because Daily Table works closely with a large network of growers, supermarkets, manufacturers, and other suppliers who donate their excess healthy food and provide special buying opportunities.

    Related Solutions

    Cold Chain Management

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    $1,816 /ton
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    meals recovered

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    Improved Inventory Management

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    $1,194 /ton
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    meals recovered

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    in GHG reduction

    20 B gal/yr
    in water conservation

    0
    jobs created

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