14 February 2022
Barclays has released a report that highlights the growing impact sustainability has on retailing. Whilst the report focuses on large retailers, the trends will impact everyone on the high street.
The key insights are:
What is the most important to consumers when shopping?
- 78% Product Quality
- 76% Price
- 52% Ethical Credentials
- 52% Sustainability
The green agenda is increasing in the eyes of the consumer and the real winners will be retailers who can combine product quality and price with sustainability.
It is the Millenial and Generation Z demographics who are reinforcing customer sentiments around ethics and sustainability - their values are being set now.
The Top three ethical and/or sustainable business practices according to consumers are:
- Recyclable packaging 55%
- Fair wages for staff 51%
- Fair working hours staff 48%
It is not just about the products, but also about the way the business is run. Furthermore, the report showed evidence that consumers will pay more for products that are truly sustainable and from retailers that have strong sustainable credentials.
Retailers are recognising these trends and spending more sustainably, with the greatest challenges being seen in the supply chain. Retailers want the supply chain to be more ethical and sustainable.
Reputation is important to retailers and consumers. and retailers spend on average 11% of their turnover on improving their credentials.
Andrew Goodacre, CEO BIRA, said “This report confirms something that many independent retailers have recognised for some time – becoming more ethical and sustainable is vital to future retailing. Moving to net-zero should be seen as an opportunity and not just a cost. Consumers are very aware of the green agenda and will increasingly seek like-minded retailers who meet their values. Independent retailers are known for being agile and creative. I would urge them all to review their sustainability plans and improve them where possible”
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