Several of the grocery stores I frequent absolutely do this with a lot of things. They'll usually have something like a clearance section with things on their last few days. Its usually a good place to find a cheap loaf of bread or some kind of desert that's about to go past its sell by date to eat that night. The tricky part is those sections usually aren't refrigerated so its only shelf-stable stuff.

But they do often have "sales" for fresh goods even as good as buy one get two free which if you look at the goods on "sale" its sell by dates are all within a day or two. But hey, buy a big thing of berries and invite some friends over.

The problem is that your profits are made on the fresher items. The marked down items are being sold at cost or at a loss. That conditions customers to shop for marked down items and cannibalizes the fresh sales. I myself used to buy the "Manager Meat Special" leg of lamb when it came up. But the stores near me stopped doing it. They find it more profitable to dispose of it at a 100% loss than discount.

A place I used to go to had a 'Meat priced for quick sale' bin. Kind of a crap shoot, but I've got a bit of an iron gut and the steaks were like 2/3 off.

There are specialty outlets -so called salvage grocery- that do just this -usually in cheap strip malls as otherwise the RE would be too expensive to be viable. They sell items close to their expiry and they are at a significant discount.

Many people don’t know about them because they are not their target market.

In the US there are some discount grocery stores (also called 'outlet' or 'salvage' grocery stores) that sell product other grocery stores took off the shelves for being too close to expired. Sometimes the food is expired, but still perfectly edible because those "best by" dates are very conservative.

The grocer I frequent has bright orange 'manager special' discount stickers that go on things nearing their expiry.

Japanese grocery stores do this with meat and packaged meals. It's not always the best strategy as nearly all the good stuff is gone by the time they start discounting and you will consistently be getting food well after a reasonable dinner time.

My local grocery store (Some Kroger-brand) does this with a variety of products, but only by discounting one time. I imagine they do something similar nationwide. Products are very close to, but of course still before, their sell-by date.

These exist. Or grocery stores have outlets ("day-old" etc) where you can buy the near-expiry or expired goods.

If you've ever seen fruit on sale, you've seen a coarse version of this.

Is ‘reduced to clear’ not a thing where you live?

This is basically how they do fruit sales