The message is clear: more and more consumers around the world are choosing to purchase products from brands that consider sustainable retail a priority.
The Importance of Sustainable Retail: Statistics and Trends
If you’re not sure whether it’s worth investing in a more sustainable retail operation, incorporating sustainability into your business is not mandatory. However, nowadays, if you want to reduce your negative impact on the environment and attract and retain an increasing number of consumers and employees who care about social responsibility, taking steps to make your business more sustainable is crucial.
How to Develop Your Sustainable Retail Business
Wanting to develop your sustainable retail business and achieving sustainability are two different things. However, here are some actionable strategies to make your retail business more sustainable:
1. Transition to E-Paper
If your company consumes a lot of paper, one of the easiest ways to reduce that is by sending receipts via email. Not only will you save resources, but customers will also appreciate that they won’t have to deal with an extra piece of paper. The World Counts report states that 420 million tons of paper and cardboard are produced annually, and more than five million acres of forests are cut down in a typical month. Transitioning to e-paper helps not only reduce the company’s carbon footprint, but also ensures that receipts won’t be discarded as waste later.
2. Reduce Waste in the Manufacturing Process
Customers care about how products are made and want to know that you care too. The manufacturing process can generate a lot of waste, and you can move toward sustainability by monitoring your supply chain. If you manufacture any products yourself, review the waste and look for ways to use recyclable or reusable materials in the manufacturing process. If you buy and sell pre-manufactured goods, ask your suppliers for transparency on issues such as labor practices, safety conditions, pollution, and waste. There are no industry standards for disclosing this information, so you need to be proactive in obtaining it.
3. Look for Clean Energy Options
In addition to reducing actual consumption, consider shifting to consuming less of the most wasteful types of energy. This is an area where you can save a lot of money. Energy costs continue to soar, with the Bureau of Labor Statistics showing that the average electricity bill rose from 14.7 cents per kilowatt hour in July 2022 to 16.8 cents per kilowatt hour in July 2023. Contact your utility providers and ask them to conduct energy audits in your store, suggesting ways you can reduce energy usage. You might also consider solar energy options to power lights and other electronics. Lowering your thermostat by seven to ten degrees Fahrenheit for eight hours a day can reduce energy consumption by 10%, according to the U.S. Department of Energy. Turn off your computer, copier, and printer when you leave for the day. And ensure your employees support your energy-saving mission, appointing a “Green Team” or energy advocate to monitor usage. Simple behavioral changes offer opportunities for cost-effective or free energy savings.
4. Recycle Old Goods
In addition to selling new products to customers, look for ways you can help them recycle old or damaged goods. For example, Eileen Fisher stores offer a program called “Renew” that collects, repairs, and sells used clothing under the company label and donates the proceeds to nonprofit organizations benefiting women and children. The outdoor brand North Face has a program called “Renewed Take-Back,” which collects used clothing and gives customers a $10 discount on purchases. Items are repurposed into products like insulation, carpet padding, play cushioning, and new clothing fibers. Nike’s “Reuse-A-Shoe” initiative (one of its sustainable retail initiatives) collects used shoes that are recycled into materials used to create running tracks, playgrounds, and courts. If your company sells items that replace old goods, consider offering to collect items that can be reused or donated to someone who can use them.
5.Be Transparent
Sustainability is important to consumers, so make sure to share your vision and work with your customers. You’re not just promoting yourself: you are giving customers a chance to support their own sustainability efforts by supporting a business that cares about the environment, community, and future.
6. Provide Sustainable Brands and Products
If you stock various brands in your retail store, one way to make your business more sustainable is to purchase products only from brands that follow sustainable business practices. For example, when orders are shipped to your store, are they packaged in recyclable materials? Do brands tell you about their goals to reduce environmental impact and waste? Are the materials or components used to make the products sustainable? These are great questions to ask before deciding to stock a new brand.
7. Explore a Rental Business Model
Fashion services like “Rent the Runway” and “Nuuly” allow customers to rent goods from a range of brands, reducing consumption, waste, and negative environmental impact. Shoppers can choose a plan or subscribe for a certain number of products delivered each month. When they’re done, they can return them and select another set of products or (depending on the business) skip a month.
8. Use Renewed or Recycled Materials for Product Displays and Store Decor
Instead of buying all new product displays or store decor, consider purchasing used or vintage items, or fixtures made from recycled materials. Anything you can do to reduce, reuse, repurpose, repair, and recycle will contribute to sustainability in retail.
9. Sell Used Goods or Set Up a Buy-Back Program
Secondhand or pre-owned products are popular among environmentally conscious consumers for two main reasons. Buying used clothing means the environmental impact of the purchase is lower, and secondhand clothing is generally more affordable. Shoppers can feel good about their purchase and buy items they might not otherwise be able to afford new. While the used goods business model may not suit all retailers, even if you’re not a secondhand retailer, there may be ways you can integrate a sustainable retail strategy into your business. For example, set up a buy-back program that allows you to accept previously purchased items for resale, repair, or recycling into new products. You can also partner with resale platforms to sell buy-back items in bulk.
10. Recycle or Donate Unsold Inventory or Samples
Creative reuse, or recycling, is when you turn waste materials or unwanted products or samples into new materials or products. It reduces textile waste by gently reusing unused fabrics or leftover goods.
11. Reduce Waste and Costs with Virtual Showrooms and Sample Making
Retailers and brands in the fashion, home design, and beauty industries use virtual showrooms to facilitate the sales process for everyone. Instead of scheduling buying appointments in a physical showroom or at trade shows, brands can showcase their collections and buyers can visit them at their convenience and place orders, all on one platform. Depending on the virtual showroom provider, brands can create virtual or 3D samples to sell from.
12. Find Ways to Reduce Your Carbon Footprint in Shipping and Logistics
McKinsey and Company found that products claiming to be sustainable accounted for 56% of all growth over the past five years. With transportation accounting for 14% of global greenhouse gas emissions, according to Gitnux, finding ways to reduce your carbon footprint in shipping and logistics will help protect the environment and your revenue streams. Your company can reduce its carbon footprint by switching last-mile deliveries to electric vehicles or motorcycles or bikes, and by using cardboard boxes or third-party logistics centers to improve the sustainability of order fulfillment. Download the Future of Shipping and Logistics report.
13.
Investing in Product Packaging and Shipping Supplies That Are Recyclable, Biodegradable, or Reusable
The e-commerce packaging market generates approximately 10 million tons of carbon dioxide equivalent annually. As 60% of respondents from McKinsey and Company stated they would pay more for a product with sustainable packaging, it is essential to consider how to make your product packaging recyclable, biodegradable, or reusable. However, the environmental impact goes beyond consumer demand. Packaging is a primary source of emissions in e-commerce. It is five times higher than buying products in-store.
14. Giving Customers the Option for Carbon-Free Shipping
Offering carbon-free shipping options is another great way to build sustainability in your retail store. Allowing customers to choose these options during checkout makes them feel part of your sustainability efforts by selecting eco-friendly shipping. For example, Shop Pay helps communities plant trees with every payment to offset the environmental impact of shipping.
15. Setting Sustainability Goals and Committing to Them
Use some of the above recommendations to build a sustainable retail strategy, and then communicate your goals internally to your team and externally to potential and current customers. This will help hold your business accountable and can also influence a shopper’s decision to buy from your store. Keep your messages simple, and communicate your sustainability progress with customers.
Examples of Sustainable Retailers
Ganni uses innovative materials in-store and reuses unsold inventory.
As part of its environmental responsibility efforts, the conscious fashion brand Ganni aims to use sustainable materials for its displays and in-store decor. This includes recycled plastic platforms, product displays, benches made from plastic waste, used chairs, single-use plastic containers, and zero-waste wooden flooring.
The popular sustainable fashion brand Reformation aims to achieve more environmentally friendly retail stores. There are six stores certified as sustainable retail businesses in Los Angeles, and the brand employs strategies to improve energy efficiency, water conservation, resource care, and reduce carbon emissions. Some of these strategies include using LED lighting and insulating with recycled fabrics to save energy. The brand also calculates the building impact and aims to offset it.
Levi’s is reducing its environmental impact not only by raising customer awareness of the benefits of wearing their clothes longer (wearing clothes for just nine months can reduce carbon impact by 30%), but also by helping customers extend the life of their clothes through repairs and recycling at its tailoring shop. Additionally, in 2020, Levi’s launched its first buy-back program called Levi’s SecondHand. Customers can return their jackets and jeans in stores in exchange for a gift card that can be used to purchase used jackets and jeans in the Levi’s secondhand marketplace.
Kiehl’s is one of the well-known brands implementing modern sustainability initiatives. Some of these initiatives include:
- Product containers made from recyclable glass
- 80% of plastic packaging made from recycled materials
- A range of its best-selling products available for refill to reduce jars that are discarded after a single use
- Customers can return empty containers through the Recycle & Be Rewarded program and earn cash discounts to help Kiehl’s achieve its sustainability goals
Simons is one of the brands offering the latest trends in clothing, accessories, and home decor, and sustainability is another trend gaining attention. In 2018, the company opened its first zero-net-energy store in Quebec City, Canada. Using industry-leading technologies to eliminate its carbon footprint, the store is designed to generate the energy it needs on-site at the same rate it consumes annually. The 80,000 square foot space is powered by solar energy and is heated and cooled using a geothermal system that regulates temperature by harnessing the earth’s energy, improving energy efficiency by 60%. While Simons may set high standards, retailers of all sizes can take steps to become more sustainable by focusing on practices and products.
PromotingYour Sustainable Retail Business
We don’t expect you to implement all of these sustainable retail practices immediately (or ever), but we hope you will think more about how you can take small steps to make your business more sustainable. As you have learned, this will not only earn you respect and loyalty from customers, but it can also help you save money and resources. Additionally, you will contribute to reducing the negative impact that retail and e-commerce can have on the environment.
This article was originally written by Stephanie Vozza and updated by Alexis Damen.
Frequently Asked Questions About Sustainable Retail
What does sustainable mean in retail?
In retail, being sustainable means operating in a socially and environmentally responsible manner, considering the long-term impact on the environment, local communities, and the global economy. This includes reducing waste, lowering energy consumption, and using renewable resources. It also means providing and selling products made from sustainable materials, produced in ways that do not harm the environment, and transported in environmentally friendly ways.
Why does sustainability matter in the retail industry?
Sustainability is important in the retail industry because it allows companies to protect the natural environment, reduce energy and water consumption, and provide better working conditions for their employees. It also helps retail companies protect their resources and save money by reducing waste and using more efficient processes. Additionally, sustainable practices help retailers build trust with their customers, as they demonstrate their commitment to social and environmental responsibility.
What is an example of sustainability?
Examples of sustainable practices include: using renewable energy sources such as solar, wind, and hydro; employing energy-efficient measures like LED lighting and insulation; sourcing locally produced food and materials; practicing water conservation; maintaining natural resources through recycling and composting; and reducing waste through reusing and recycling materials.
Source: https://www.shopify.com/retail/sustainability-retail
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