🌅 Donating Food Boosts Grocery Store Profits

SOURCE

Trader Joe’s

WHAT TO KNOW

• Trader Joe’s stores nationwide donated more than 98 million pounds of quality food products through its Neighborhood Shares Program in 2024, helping some 2,000 food banks, community-based agencies, and nonprofit organizations fight hunger across the U.S. All 579 Trader Joe’s locations participated in the program, donating food products to local organizations seven days a week.

WHY IT MATTERS

• A recent study by researchers at Northeastern University found grocery stores that donate food items ahead of their expiration dates and fill the shelf space with fresher inventory drive more revenue through sales and earn higher profits. Donating also boosts profits by lowering costs through tax incentives and improves the quality of items available for customers.

CONNECT THE DOTS

• Every major U.S. grocer donates unsold food products—retailers donated close to 2 billion pounds of food in 2022—though only 2% of surplus items go to charities while 85% end up in landfills. Food manufacturers cite liability concerns as a major barrier to donating, however, that fear is misplaced. In 1996, President Bill Clinton signed the Bill Emerson Good Samaritan Food Donation Act into law, protecting businesses from both civil and criminal liability when donating in good faith.