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The GCC’s $7 Billion Food Waste Crisis: How Retailers Can Lead The Change

Food waste is a pressing issue in the Gulf Cooperation Council (GCC), where it averages 150 kg per person annually—14% higher than the global average of 132 kg. While not as severe as in countries like the U.S., the GCC’s food waste levels still exceed those of many developed nations, according to the report Tackling Food Waste in the GCC Grocery Market by Oliver Wyman.

Retail food waste accounts for 5-15% of total food waste in the region, but it is 38% higher than the global average, representing a substantial opportunity for improvement. In 2022, the GCC retail sector wasted approximately 1.3 million tons of food, costing between $4 to $7 billion annually—equivalent to providing iftar meals to 70% of the Muslim population during Ramadan. Beyond the financial toll, this waste contributes to environmental damage, from greenhouse gas emissions to the depletion of vital resources like water, energy, and labor, all of which could be better utilized for sustainable development.

The rapid growth of GCC’s grocery and retail markets—valued at $40 billion in the UAE and $62 billion in Saudi Arabia in 2023—has highlighted the scale of the issue. Large hypermarkets and grocery chains, facing low margins, high sales volumes, and intensifying competition, are particularly affected by the waste problem. Promotions such as “buy three, pay for two” encourage the purchase of perishable goods that often end up being wasted. Complex inventory systems and inconsistent stock management practices further exacerbate the problem.

Four Key Drivers Of Food Waste In The GCC

  1. Fragmented Supply Chain Dynamics
    Unlike Western countries, the GCC relies on direct deliveries from suppliers to stores, resulting in increased safety stock and excess inventory, contributing to food waste.
  2. Impact of Supermarket Displays
    GCC supermarkets are typically overstocked to avoid the appearance of empty shelves, which makes products more likely to be discarded when they don’t sell. Additionally, conservative expiry date regulations in countries like Saudi Arabia limit shelf life, leading to waste.
  3. Limited Ownership and Supplier Contracts
    Supplier agreements often require unsold goods to be returned, leaving retailers with surplus stock that can’t be used, which incentivizes excessive sales at the cost of higher consumer prices.
  4. Manual Forecasting and Waste Generation
    Inventory forecasting is often done manually with minimal technological support, leading to inaccurate stock management based on presentation rather than actual demand.

Steps Toward Reducing Food Waste In The GCC

Retailers in the GCC must adopt more sustainable practices. Governments also have a key role to play in creating frameworks that support these efforts, in line with the region’s commitment to the United Nations’ Sustainable Development Goals (SDGs), which aim to halve global food waste by 2030.

Retailers should focus on improving forecasting and replenishment systems to align stock levels with actual demand. Collaborating with suppliers to reduce safety stock and exploring more centralized supply chains for perishable goods could also reduce waste. Furthermore, training staff to handle perishables more efficiently, assess product quality, and place accurate orders is crucial in curbing waste at the retail level.

With supportive regulations, public awareness campaigns, and partnerships, GCC governments can help foster an environment that encourages retailers to adopt sustainable practices and reduce food waste, benefitting both the economy and the environment.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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