How to Handle Expired Products: 11 Smart Strategies for Retailers

Expiration dates aren’t scaring customers away like they used to. In fact, over 60% of shoppers say they’re happy to buy discounted items nearing expiration—and nearly half admit to eating food past its printed date.

For retailers, this trend is a wake-up call. Managing expiration dates isn’t just about waste prevention anymore—it’s about how you handle pricing, stocking, and communication. These strategies will help you stay ahead of expiration risk—and make the most of your inventory.

Key takeaways

• Track expiration dates in real time to catch issues early and prevent shelf waste.

• Use discounts, donations, or repurposing to recover value from aging inventory.

• Train staff on expiration protocols and labeling to avoid costly errors.

• Leverage data trends to fine-tune ordering, stocking, and supplier coordination.

• Treat expiration control as an everyday habit—not a one-time fix.

1. Monitor inventory expiration dates in real time

Expired products don’t just eat into your profits—they can hurt your brand reputation and even create health risks. Tracking expiration dates manually isn’t sustainable as your inventory grows. Real-time inventory management tools make it easier to stay ahead.

• Use inventory software with expiration date tracking and real-time alerts.

• Set up automated reminders for products nearing their expiration window.

• Categorize items by shelf life to focus monitoring on the most perishable goods.

• Regularly audit inventory to catch labeling issues or overlooked items.

• Train staff on how to log and track expiration dates during receiving.

2. Use FIFO inventory practices

If you’re not rotating stock effectively, newer items may be sold before older ones—leading to preventable waste and lost revenue. First-in, first-out (FIFO) helps move inventory in the right order and maximizes product freshness.

• Place older stock in front and newer items behind on shelves and in storage.

• Color-code or label items with received dates or expiration dates.

• Train staff to always pull from the front and stock from the back.

• Use shelving or bins that support FIFO flow (especially in cold storage).

• Review FIFO performance monthly to catch breakdowns in the process.

3. Train staff on expiration protocols

Even with the best systems in place, poor training can lead to expired products slipping through the cracks. Clear protocols ensure your team knows how to spot, log, and remove expired or soon-to-expire items before they cause issues.

• Provide training on identifying sell-by, use-by, and expiration dates.

• Create clear SOPs for removing expired or soon-to-expire items from shelves.

• Designate responsibilities for daily or weekly expiration checks.

• Use checklists or digital tools to track compliance across shifts.

• Reinforce expiration protocols during onboarding and ongoing training.

4. Label products clearly with sell-by and use-by dates

Confusing or inconsistent labeling can lead to wasted product, customer complaints, or even safety concerns. Whether you're selling perishables or non-food items like cosmetics or vitamins, clear labeling is key.

• Use printed labels with legible sell-by and use-by dates.

• Avoid handwritten labels whenever possible to reduce errors.

• Include date formatting that’s easy for all staff to understand (MM/DD/YY, for example).

• Color-code labels by product type or expiration urgency.

• Review labels during receiving and reject or relabel unclear items.

5. Set up automated alerts for soon-to-expire items

Manually tracking expiration dates across dozens—or hundreds—of SKUs just isn’t realistic. Automated alerts can flag at-risk products before they expire, giving your team time to take action—and avoid costly errors.

For instance, a recent Consumer Reports investigation found widespread pricing issues at Kroger-owned stores, where outdated discount labels led to customers being overcharged an average of $1.70 per item. With stores displaying as many as 15,000 discount tags at once, human error is inevitable. Automation helps ensure pricing stays accurate, shelves stay current, and customers don’t pay for your oversight.

• Use POS or inventory software that supports date-based alerts.

• Set custom thresholds (e.g., alert 3–5 days before expiration) based on product type.

• Assign alert notifications to specific team members or roles.

• Integrate alerts with daily task lists or back-of-house checklists.

• Review alert performance regularly and adjust timing as needed.

6. Offer discounts on near-expiration products

Discounting products before they expire helps reduce waste and recover costs—especially for perishable goods or trend-driven inventory. It can also attract deal-seeking customers and boost basket size.

Research shows that products nearing their use-by date are often perceived as lower quality, making them less appealing to customers at full price. But discounting is a proven way to shift that perception. One study confirmed that markdowns are highly effective in convincing consumers to purchase less favorable products, helping retailers reduce food waste and recapture value.

• Create a “last chance” or clearance section near checkout or high-traffic areas.

• Offer tiered discounts based on how close the item is to expiration.

• Promote deals on near-expiration items through digital signage or your POS.

• Train staff to upsell short-dated items when appropriate.

• Track sell-through rates and adjust pricing or timing accordingly.

7. Donate safe, unsold products before they expire

When products are close to expiring but still safe to consume or use, donation can be a win-win. You reduce waste, support your community, and may even qualify for tax benefits depending on local laws.

Plenty of national brands have built donations into their operations. Panera Bread’s Day-End Dough-Nation program, for example, donates unsold bakery items to local nonprofits every night. It’s a model that shows how giving back can be both efficient and impactful—helping communities while keeping perfectly good food out of landfills.

• Partner with local food banks, shelters, or donation centers.

• Establish clear internal criteria for what can be donated.

• Set a donation schedule to align with product shelf life.

• Train staff on how to identify and sort donation-ready items.

• Document donations for transparency and potential tax reporting.

8. Compost, recycle, or repurpose expired items

Not everything can or should be donated. For products that are truly expired or unsafe, composting or recycling helps divert waste from landfills and supports your sustainability goals.

Some retailers are taking it a step further by repurposing food before it reaches the donation cutoff. Walmart, for example, blast chills hot rotisserie chicken nearing expiration and repackages it, extending shelf life from 4 hours to 3 days. This both reduces waste and creates new opportunities for donation and SNAP eligibility. 

For inedible items, Walmart uses Zero De-Pack technology to break down waste into compost, animal feed, or energy, recovering over 60% more organic content and reducing trash by 12%.

• Set up compost bins for food waste in back-of-house areas.

• Work with a composting or organic waste pickup service.

• Recycle packaging materials according to local guidelines.

• Post signage to guide staff on proper disposal methods.

• Track waste reduction over time to improve your process.

9. Use expiration data to adjust purchasing strategy

Recurring expired products often signal deeper issues with ordering or inventory forecasting. Reviewing expiration trends can help you refine purchasing decisions, reduce waste, and respond more effectively to real demand.

• Analyze inventory reports to identify frequent expiration issues.

• Group high-risk or short-shelf-life products for easier monitoring.

• Adjust order volumes based on shelf life and sales velocity.

• Refine delivery schedules to better match turnover rates.

• Reduce orders for items that consistently expire before selling.

• Collaborate with staff and suppliers to align on realistic inventory targets.

10. Streamline supplier communication for returns or credits

Some suppliers allow returns or offer credit for expired or unsold products—especially if spoilage was due to shipping delays or fulfillment issues. Having a clear communication process in place can help you recover losses.

• Review vendor return and credit policies during onboarding.

• Document expiration-related issues and take photos when needed.

• Contact suppliers promptly when problems arise.

• Keep records of return requests and resolutions for accountability.

• Build strong vendor relationships to negotiate flexible terms.

11. Build expiration control into your daily operations

Managing expired products isn’t a one-time fix—it’s a habit. Embedding best practices into daily routines and team culture helps make inventory control second nature.

• Make expiration checks part of opening and closing routines.

• Assign responsibility for expiration tracking to a specific role or team.

• Include waste reduction or sell-through goals in team KPIs.

• Incorporate expiration protocols into onboarding and ongoing training.

• Revisit and update your strategy quarterly based on new trends or challenges.

Spoiler alert! From expired to inspired

Expired products are inevitable, but they don’t have to be costly. By building the right systems into your daily operations, you can stay ahead of expiration dates, reduce waste, and keep your bottom line healthy.