The shops cannot reduce production for fear of wastage. How do you like to walk into a half empty bread shop?
The shops cannot sell their unsold breads at discount prices because they can sell the bread at higher price absorbing the wastage. The shops don't lose money because you pay for the wastage.
It's a win win siuation for the shops which make a profit and the customers who get fresh breads because the shops throw away the unsold breads everyday.
Everybody is happy.