In this guide 6 sections
Capture the batch and expiry date at receiving, print a daily list of items nearing expiry, and mark them down in steps tied to days left. Record anything unsold as a write off with a reason. Short dated stock then sells before it spoils.
Start with expiry dates at receiving
A markdown rule needs a date, and the easiest place to capture it is the dock, when the carton is open and the label is easy to read. Nobody looks again until a customer does.
Record the batch, the expiry date and the quantity for each line received, because yoghurt cups, sliced bread, crisps and sunflower oil each age at a different pace. Give each item a typical shelf life in the item master, so a missing or impossible date is flagged the moment the carton is scanned.
Refuse short-dated deliveries when the supplier’s own terms allow it, because a carton that arrives with a week left is already a markdown on the day it lands. Check the invoice terms.
- Batch and expiry entered per line
- Shelf life stored per item as a default
- Alert when a delivery has too few days left
- Supplier return terms noted for short dates
Build the daily near expiry list
Each morning, print or open a list of batches expiring within a set window, sorted by days left and then by aisle and shelf. One person walks it with a trolley.
Windows differ by product. Fresh milk may need attention three days out, while a tin of chickpeas may need none until the last three months of its life. Set the window per category.
Keep the list short and usable. A forty page printout stays in the drawer, while a one-page list with aisle numbers and quantities gets walked every single morning.
Mark down in steps tied to days left
Set the markdown steps per category rather than per item, so fresh bakery drops at two days left, again at one day and again on the last day. Pasta sauce needs longer, gentler steps.
Tie each step to a coloured sticker so customers see it, and update the till price together with it, because a mismatch sends the cashier to the override key.
Pick one owner per day. Without a named owner, markdowns happen only when somebody remembers to look, and by then a tray of fresh milk has already turned sour on the chiller shelf.
- Steps defined per category with days left
- Coloured sticker matching each step
- Till price changed with the sticker
- Named owner for the daily list
Record the write off with a reason
Whatever remains on the last day leaves the shelf and is posted as a write off with item, batch, quantity and a reason: expired, damaged or returned. That record becomes your purchasing feedback.
If the same item is written off every week, the order quantity is too high; if it is written off after a long display, the shelf position is wrong.
Consider a food bank donation or a supplier credit for items that qualify, and note which suppliers accept returns on short dated cartons. Otherwise the stock goes to the bin.
- Write off entered with batch and reason
- Weekly list of items written off twice
- Supplier credit notes matched to returns
Review the rules after two weeks
After two weeks, compare units sold at each markdown step with units written off, because if most stock sells at the first step the second step is too generous. If nothing sells at the first step, it is too timid, and the sticker colour is not doing its job in the aisle.
Adjust one category at a time. Keep notes beside the sheet.
Near expiry markdown rules sheet
Single page covering each category. Columns: category, shelf life, list window in days, first markdown trigger, second markdown trigger, last day action and owner. A daily log below records item, batch, expiry date, quantity, step taken, units sold and write off reason.
Open a blank worksheet to printQuestions owners ask
What expiry date should I follow when batches are mixed?
Always the earliest. Rotate stock so older batches sit in front, and record batches separately so the daily list shows each one.
Do I need software for batch tracking?
A paper register works for a small shop. Software helps when you carry many lines, since it builds the daily list and flags short dated deliveries on its own, before the cartons reach the shelf.
Should markdowns be the same across all stores?
Use the same steps as a starting point, then let each store adjust them after it has seen its own sales pattern for a few weeks.
Is there a rule on selling past a best before date?
Rules vary by country and by whether the label says best before or use by. Check your local food authority’s guidance before setting policy.