Turning Shrink into Opportunity: How IGA Retailers Are Winning with Flashfood

Each year, U.S. retailers lose billions to food waste—an estimated $428 billion, according to IGA Senior Director of Connected Commerce Sarah Rivers. For independent grocers, that can mean more than $40,000 in lost revenue per store annually. But as grocers learned in IGA’s recent webinar with Red Oval Partner Flashfood, that “loss” can be transformed into margin recovery, customer loyalty, and measurable ESG wins.

Watch the webinar recording below or keep reading for a recap.

Why Markdown Strategies Fall Short

“What if shrink isn’t just a loss to manage,” asked Flashfood Director of Independent Grocery Sales Abby Ayers, “but really an opportunity to grow?”

Traditional markdowns — those yellow tags every grocer relies on — can actually devalue the shopping experience, according to Ayers.

“Markdowns tend to train customers to wait for discounts,” she said. “And they’re reactive, not strategic. They often just delay shrink instead of solving it.”

Beyond that, markdowns rely on luck and foot traffic. “If the right customer isn’t in the right aisle at the right time, that product still ends up in the trash,” Ayers said.

Expanding Reach Beyond the Aisle

Flashfood’s digital marketplace flips that model.

“Instead of hoping the right shopper walks by, you can connect with thousands of nearby customers actively looking for value,” said Ayers. The Flashfood app lets grocers post short-dated items for sale to more than 1.5 million users, creating what Ayers calls ‘marketing fuel’ out of markdowns.

And the results speak for themselves:

• Shoppers who purchase short-dated deals spend an additional $28 on other items in the same visit.
• They visit nearly four times more often than non-Flashfood users.
• 77% check the app daily for new deals.

“These aren’t just deal seekers; they become loyal, habitual shoppers,” said Ayers. “They change their buying behavior and come back more frequently.”

Five Proven Strategies for Reducing Shrink

Ayers outlined five practical strategies grocers can use to turn food waste into profit:

1. Expand your audience. Don’t rely solely on in-store markdowns. Use digital tools, social media, or apps to reach customers before they walk in.
2. Act early. “Give yourself days, not hours,” Ayers advised. Flag products for markdown two to three days before expiration to improve sell-through and reduce labor waste.
3. Start with high-impact departments. Meat, bakery, and prepared foods drive the most return. Ayers noted that “meat posted on Flashfood has an 89% sell-through—usually within an hour.”
4. Use dynamic pricing. Adjust discounts by category and shelf life. Not every product needs the same markdown.
5. Track and learn. Use data to see who’s buying, when, and why. “Those insights are gold,” Ayers said. “They help you build loyalty and improve your broader merchandising strategy.”

Profit Meets Purpose

Shrink reduction isn’t just about dollars, it’s also about doing good.

“Reducing shrink is part of your sustainability story,” Ayers said. “Less waste means less cost and more food reaching families who need it.”

One IGA retailer she highlighted turned lost revenue into measurable success:

• Generated $6,000 in recovered sales in its first year.
• Diverted 3,000 pounds of food from landfills.
• Attracted 70 new customers through the Flashfood platform.

“For a 10,000-square-foot store on a small Florida island, that’s incredible,” said Rivers. “That’s $6,000 that would have gone straight into the trash.”

Support for IGA Retailers

As an IGA Red Oval Partner, Flashfood offers exclusive benefits to participating IGA stores, including enhanced revenue sharing, simplified onboarding, marketing kits, and team training.

“We don’t just teach your team how to use the app,” Ayers explained. “We help you integrate it into your daily processes: when to pull products, how to price them, and how to track results.”

Each store also gets an account manager and 24/7 customer support to ensure ongoing success.

With shrink touching every part of a grocer’s business, from profit margins to customer engagement and community impact, independents must pay attention and address the problem.

“By taking a strategic approach supported by digital tools, independent grocers can turn this persistent challenge into a lasting advantage," Ayers noted.

To book a demo and learn more about implementing Flashfood in your store, click here.

Curious how Flashfood works in stores? Watch the above video.