Freshways Supermarket

This is the 2024 updated version of the Freshways food waste case (see also Case 2). The core scenario is unchanged — Freshways, UK's 4th largest supermarket, is losing £300m annually to food waste and seeks a consulting-led strategy to fix it — but the framing and supporting materials reflect PwC's current toolkit. Use this version for the most up-to-date practice aligned to current PwC interview materials. The case rewards structured decomposition of the waste problem, careful trade-off analysis across four solutions, and a persuasive CEO pitch.

Company Profile 4th largest UK supermarket — 12.5% market share, £17bn annual revenue 435 stores in the UK; trial international stores in Dubai, Qatar, and Hong Kong Online delivery subcontracted to regional haulage firms — late entrant to e-commerce Target: 20% carbon footprint reduction over 5 years; consistently losing share to budget rivals Three Structural Analysis Areas 1. Optimisation problem: Current policy applies a flat 35% markdown once daily (afternoon) on expiry-day items. Candidates should interrogate frequency, timing, discount depth, and flexibility. 2. Shelf-life variables: Packaging type (vacuum-packed vs. loose), supply chain speed (farm to shelf), and sourcing geography all drive how long produce lasts in-store. 3. Store-type supply mismatch: All three store formats (24-hour large, mid-size, small local) currently receive identical delivery quantities regardless of size, demand, or throughput. This is a structural root cause of waste in smaller stores.

Lead with the structural root cause The single-delivery-quantity policy across all store formats is the clearest structural driver of waste. A strong candidate identifies this as a supply chain planning failure — not just a markdown policy issue — and recommends store-level demand forecasting as the foundation of any solution. Recommend B + D as the core intervention Flexible markdown scheduling (B) paired with trained staff quality monitoring (D) addresses both the pricing and operational dimensions of the waste problem. Charity donation (C) serves as a residual channel for items that cannot be sold even at steep discounts. Frame the implementation in phases Phase 1 (0–30 days): Pilot a 3-times-daily markdown schedule in 5 large-format stores. Measure waste reduction and revenue impact. Phase 2 (1–6 months): Roll out store-specific delivery quantities and staff quality monitoring across all formats. Phase 3 (6–18 months): Implement technology-enabled demand forecasting and automated markdown triggers.