The Retailer Spring Edition 2023

SPRING 2023

27

of which carry their own environmental impact. The emergence and growing success of the second life, preloved sector (e.g. Vinted, Secret Sales, Facebook Marketplace) is a sign of the positive actions organi sations can take to reduce landfill and waste through more effective repurposing of markdown stock, returns, seconds and faulty products. Retailers can make a huge impact here if sustainability is truly embedded in their commercial agenda. The ‘Re-Selfridges’ programme focuses on resale, rental, repair, refill and recycling, and now incorporates a preloved marketplace on its main website. It is messaging like this that will drive consumers to think and behave more sustainably. They have also publicly set themselves a target for 45% of transactions to come through circular products and services by 2030!

PRN and EPR regulations target the retailer/producer with shouldering the costs, but is the reality more that consumers facing a penalty for buying an ‘unsustainable’ product can ultimately make the biggest impact and put pressure on the retailer/producer accordingly? Consumer behaviour following the implementation of the ‘Sugar Tax’ saw a decline of 35% in more expensive sugary drinks as consumers found alternatives1. Similar incentives to the carrier bag scheme will drive better behaviours. Conclusion: By prioritizing ethical, environmental, and economic values, retailers can create a sustainable business model that is profitable and supports the local community. As consumer awareness of sustainability issues continues to grow, retailers who do not prioritise sustainable value risk losing market share and damaging their brand reputation. Delivering sustainable value is a responsibility shared by all consumers and organ isations. Encouraging organisations to pool their resources, collaborate with each other, and invest in achieving wider macro goals will create more significant and long-lasting impacts on the environment and society.

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Setting stretching targets using quantifi able measures and collaborative working between retailers, brands and manu facturers will increase progress and set benchmarks.”

Andrew Davidson andrew.davidson@4cassociates.com linkedin.com/in/andrew-davidson-39946721/

Economic Value: Sustainable and economic values have, in previous research, often found conflict with each other with suggestions that sustainable practices come at a premium. At a recent 4C event, there was an overwhelming view that sustainability does not have to mean a higher price. Being more sustainable in product development can and should mean using the right design principles to minimise waste and utilise the most efficient materials for the job: being efficient was, in effect, being sustainable. Awareness of alternative materials and appropriate investment from retailers to realise these relatively untapped resources can transform cost models and deliver a huge reduction in waste throughout the supply chain. However, economic value is not the sole responsibility of the retailer to deliver. Consumers ultimately need to act responsibly with their purchasing choices; to facilitate this, retailers, CPGs and government organisations need to provide better education, clearer/standardised labelling and more ‘incentives’. The implementation of carrier bag charges drove a rapid decline in the consumption of bags at limited inconvenience to the consumer because it is generally accepted to be the right thing to do…so why stop there?

¹ https:/ www.instituteforgovernment.org.uk/article/explainer/sugar-tax#:~:tex t=Sugar%20consumption,135%2C500%20tonnes%20to%2087%2C600%20 tonnes