The concept of sustainable retail may seem paradoxical to some. After all, an industry that accounts for less than 5% of the economy is responsible for nearly a third of the country’s greenhouse gas emissions, making it among the highest contributors in the UK. It’s also a significant contributor to landfill waste, with the established build-buy-bin model creating millions of tonnes of rubbish and plastic that are dumped in landfills every year.
However, all that is slowly starting to change. Climate change is one of the leading concerns for UK consumers, often ranking alongside or even above economic issues, and consumers are increasingly expressing their views through their purchasing decisions.
According to YouGov data, 64% of British consumers are willing to pay up to 10% more for sustainably packaged foods and drinks, while 21% are willing to invest more in products that favour sustainability. The government is also starting to drive green business practices in retail, with sustainability initiatives, such as the Plastic Packaging Tax, compelling businesses to take action.
Given the rising interest in eco-friendly retail, adopting more sustainable business practices can benefit both your sales and the planet. But where should you start? Here are some steps you can take on your journey to becoming a more sustainable retailer.
Sustainable retail: Six ways to introduce greener retail practices
Build greener stores
As a retailer, green business practices should focus on where you work and not just how you work. For example, stocking sustainable brands with recyclable packaging is a great start. However, can you be a sustainable retailer when your buildings are energy inefficient and powered by fossil fuels?
Sustainable design is becoming the norm, with many new buildings designed to conserve energy, improve water efficiency and reduce CO2 emissions. However, what about retailers in existing premises?
They can implement decarbonisation strategies to retrofit their buildings with more energy-efficient solutions. Specialists can conduct energy audits to identify areas where energy is wasted and implement new strategies to reduce a retail store’s carbon footprint.
That includes everything from adding insulation and switching to LED lights to installing methods of generating renewable energy. Along with boosting sustainability, investing in low-carbon solutions can also enhance asset value and reduce overheads.
Demand more from your supply chain
More than half of the greenhouse gas emissions in the retail industry are produced by the upstream supply chain. But as a retailer, you have a powerful voice. You can encourage suppliers to adopt greener production processes, reduce unnecessary packaging and implement more sustainable practices. As a small retailer, you’ll have a greater impact by joining forces with other businesses to advocate for change.
Transportation is another major source of supply chain emissions. Thinking local when sourcing suppliers can have a significant impact on emissions, and ‘shop local’ is becoming a sustainable retail practice and marketing message that’s recognised and welcomed by consumers.
Go paperless
The retail industry prints 11 billion paper receipts in the UK every year, generating over 28,000 tonnes of carbon emissions, yet 90% of those paper receipts are not needed.
Simply asking customers whether they want a receipt before printing is one of the easiest and most impactful changes you can make. If customers do require a receipt, sending it by email is a more sustainable alternative.
Use reusable, recycled or biodegradable packaging
Retailers may argue that it’s their suppliers who need to do more to reduce the use of plastic packaging, but everyone, from big brands to small independent stores, has the power to do more.
Banning single-use plastic bags is one of the most successful sustainable retail initiatives to be introduced in recent years. Some smaller retailers are going a step further by becoming zero-waste stores and selling their products loose to eliminate all packaging.
More eco-friendly retail alternatives to plastic packaging are also becoming increasingly mainstream. Plant-based cellulose and starch packaging, for example, break down more easily and are kinder to the environment.
Source more sustainable brands
Most retailers have some choice around the brands they stock and work with. An increasing number of stores are making more sustainable choices and setting the standard in their respective niches.
Retailers that adopt green business practices and enable consumers to make more sustainable choices are gaining popularity. These days, younger consumers, particularly those in Gen Z, want to buy from businesses that align with their personal beliefs and values. By adopting strong ethics and a sustainable business model, retailers can establish themselves as trusted brands and sellers.
Encourage and incentivise recycling
Ensuring the goods you sell are recyclable is a significant step forward, but some eco-friendly retailers are going further by incentivising this type of behaviour in their customers.
For example, some stores are encouraging their customers to bring back used products, such as furniture and clothing, in return for store credit. Others are asking customers to return packaging to the store that customers cannot recycle at home.
These designated take-back programmes help consumers feel like they’re doing their bit while enhancing the sustainability credentials of the store.
Achieve your retail sustainability goals
At Eddisons, we offer a suite of retail property services, including decarbonisation strategies, to improve the sustainability of your buildings and boost ROI. Get in touch to discuss your sustainability goals with our team.
