MARKDOWN STRATEGY · 5 MIN READ

How to Manage Short-Dated Stock

Short-dated stock needs a timely decision. The right action depends on the printed date, product condition, storage history and your store procedure.

Separate use-by and best-before

Use-by dates are about safety, and food must not be sold after the date. Best-before dates relate to quality; past-date sale depends on the food remaining fit for consumption. Always read the label and inspect the specific stock rather than making a blanket rule from a spreadsheet.

  • Remove past use-by products from sale.
  • Check condition and storage for best-before products.

Build an earlier review window

Choose review windows by category and turnover. A fresh product may need a different rhythm from a shelf-stable item. The aim is to act while the product can still be sold appropriately, rather than discovering it only after the date has passed.

Coordinate the markdown

Confirm the previous price and calculated reduction. Update the POS selling price, print a clear sign and scan a sample unit at checkout. A barcode on a sign identifies the item but does not make the POS price change by itself.

  • Keep the product name and price legible.
  • Record who authorised the reduction and when it ends.

Learn from the remaining units

Count how many units remain after the promotion. If the same product repeatedly needs a deep reduction, revisit order quantity, delivery frequency and placement. A markdown is one tool; it is not a substitute for accurate purchasing.

Worked example: a measured markdown

A store has 14 chilled wraps at $6 each with a use-by date approaching under its store procedure. After checking storage and condition, the manager plans a $4.50 offer while the product can still be sold. The reduction is $1.50 per wrap, or 25% of the original price. They update the authorised checkout price, print the batch-specific sign and scan one wrap at the till.

Later, staff count five wraps left. The store records nine sold during the offer, but should not assume the markdown caused every sale. If wraps frequently remain close to their date, review the order quantity and delivery pattern. Once the use-by date has passed, remove the affected stock from sale regardless of whether the sign or POS price is still active.

Put it into practice

Check the actual batch, act before it becomes urgent and verify the till price.

Further reading: Food Standards Australia New Zealand: use-by and best-before dates ↗

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