Sustainability in retail
Sustainability in retail is now a major market force, affecting reputation and revenue in equal measures. In a 2024 report, environmental publication The Roundup found that 78% of consumers felt sustainability was important and 55% were happy to spend more on eco-friendly brands. They also found that 84% of consumers said poor environmental practices would cause them to avoid a brand or company.
But what does sustainable retail look like, and how can you be more environmentally friendly as a retailer? We’ve put together this complete guide to bring you up to speed on everything you need to know about sustainability in retail. Stick with us to learn more.
What does sustainability mean in retail?
You’re probably aware of the concept of sustainability, but what does it mean in the world of retail? Adopting sustainable practices in retail firstly requires a holistic assessment of the lifecycle of every product, from where and how the raw materials are sourced to how they’re disposed of or recycled.
By analysing every step along the way, it’s possible to identify areas where there’s room for improvement and act to minimise the environmental impact. For example, could your products be made with recycled materials? Could your in-store merchandising and displays be made using sustainable materials? Or could you offset your carbon footprint via a reputable tree planting or carbon capture scheme?
The specific measures available will depend on your individual business model, but they are often relatively straightforward and will pay dividends with your customers.
The environmental impact of the retail industry
In 2017, the retail industry was responsible for more than a third of the world’s total greenhouse gas emissions, and is one of the largest contributors to the UK’s annual emissions. Despite progress by many retailers, the impact of the industry on our environment is quite large, which is why consumers are keen to see change and increasingly reflect that in their purchasing decisions.
There are four main ways in which the retail industry affects the environment:
1. Pollution
There’s a potential for pollution at every stage of the retail process. Without careful mitigation, manufacturing sites can emit carbon and release chemicals into the land and rivers, transportation causes air pollution, and retail sites themselves may emit pollutants and affect the landscapes and wildlife around them.
2. Packaging
How products are packaged can have an impact on the environment, especially in large-scale retail. Packaging has been at the forefront of many consumers’ concerns for some time, as it’s one of the most visible aspects of the potential impact of retail. To mitigate this, many retailers are switching to paper or compostable bags.
3. Resource extraction
To create products, retailers need raw materials, and they need them at the cheapest cost possible to maximise profit and keep retail prices competitive. This demand for ever more materials and low costs contributes to pollution, can cause deforestation and affects wildlife and habitats.
4. Waste
A combination of single-use products and less-efficient manufacturing and transportation practices, in some cases, can cause a lot of waste. While many retailers are making great efforts to combat this, some issues remain that need to be remedied if the world as a whole is to meet environmental targets.
The importance of sustainable retail
As the effects of human activity on the environment become increasingly clear, sustainable retail is more important than ever. There are a few reasons for this:
Protecting the environment
According to NASA, the last ten years have been the warmest on record since the late 19th century, and as of 2024, global temperatures were about 1.47˚C warmer than the pre-industrial average.
With the retail industry having such a large impact on environmental change, alterations must be made at every stage of the process, from where materials are sourced to how goods are packaged and disposed of.
Attracting and retaining customers
As we mentioned at the start of this guide, not only are consumers beginning to prioritise products and brands that are more sustainable, but they’re also willing to pay more for them. Sustainability in retail is more than a moral concern; it’s becoming crucial to the long-term survival of retail businesses.
Cost savings
A happy side-effect of many sustainable practices is cost savings. For example, fitting your shops and warehouses with LED lighting can reduce your carbon footprint while saving you on energy bills. Going paperless can remove the need to buy receipt paper. Replacing your delivery fleet with electric vehicles can save you considerable amounts on transportation costs. While some of these steps require an initial investment, the long-term savings can be vast.
Regulatory pressures
Governments around the world are beginning to pass more and more legislation requiring companies of all kinds to reduce their carbon emissions. Investing in sustainable practices is key to avoiding legal problems, and making steps early gives you time to adapt better and make more considered choices.
How to develop a more sustainable retail business
Improving sustainability in retail might seem like a big task, but it’s made up of lots of small steps, many of which are easily achievable and can provide a considerable return on investment.
So, here are our top sustainable retail suggestions:
Eco-friendly in-store merchandising and displays
Changing the way you display and advertise products in-store can have a significant impact. You can opt for product and window displays made from renewable materials, modular systems designed to be rearranged into different formats and reused and minimalist designs that reduce the amount of materials needed. Increasing numbers of leading design agencies, such as B_RD, are offering more sustainable materials and designs for in-store merchandising.
Sustainable packaging
Plastic packaging in particular has a considerable environmental impact. Replacing it with biodegradable, recyclable or more resource-efficient packaging options can help significantly curb the impact of the retail industry. Even in situations where plastic packaging is necessary, simply reducing the amount of plastic used can be a sizeable step forward.
Re-usable materials
An impactful solution embraced by a growing number of retailers is to reuse materials used in stores, such as merchandising and displays. For example, at B_RD, we design our displays in such a way that they can be taken apart, stored and used again for later promotions. They can even be made modular, so they can be reassembled in different configurations each time.
Energy efficiency in stores
Another way to improve sustainability in retail is to make stores more energy efficient. Simple adjustments such as LED lighting, using digital receipts instead of paper ones or installing motion sensors for lighting and other systems can make a considerable difference.
Green logistics
Retail logistics is responsible for a large portion of the sector’s overall greenhouse gas emissions, but there are adjustments that can be made to reduce this. For example, an increasing number of retailers are upgrading their vehicle fleets with lorries running on biodiesel or electric vans for local deliveries. Warehousing can also be improved, with adaptations such as low energy lighting, more space-efficient storage to reduce the square footage required and electric forklifts.
Circular economy practices
Consider adopting a more circular approach to the lifespans of your products. Some more high-end clothing brands are beginning to implement solutions such as buy-back schemes, where customers are encouraged to return used products for a discount on a new purchase. The used or worn products are then repaired and reconditioned for resale or even recycled into new items.
Reduce waste
The UK retail industry alone produces 3.4 million tonnes of waste each year. Analyse your processes and identify where resources are being wasted. The food retail sector is a prime example of where waste could be reduced through more effective inventory management. Practices such as discounting products that are nearing their expiry are a step in the right direction, but further action, like donating unsold items to charities and food banks, would help save large amounts of waste from ending up in landfills.
Educate your customers
Share your eco goals and triumphs with your customers. This serves two purposes. Firstly, you’re blowing your own trumpet a little and demonstrating your commitment to reducing your impact. Secondly, you’re helping to educate consumers about the kind of practices that companies can take to be more sustainable.
Sustainable product sourcing
One of the easiest ways to improve your own sustainability is to source products from sustainable manufacturers. This reflects well on you from a customer perspective and minimises your overall footprint. With growing consumer demand for sustainable retail, it will also likely improve sales.
Make products recyclable
Even if your products cannot be reused or repaired, making them from recyclable materials will help minimise the impact of each item. Products made from non-recyclable materials are destined for landfill at the end of their lifespan, contributing to increased pollution and land use.
How B_RD is sustainable in the retail and production industry
At B_RD, we’ve made it our mission to prove that it’s possible to produce stunning, attention-grabbing, imagination-fuelling retail advertising, merchandising and window displays while also promoting sustainability in retail.
We use sustainable production methods and materials, such as our HP latex printers, which allow us to print detailed designs without compromising the recyclability of the base material.
With full in-house capabilities and an ever-growing list of delighted, household-name clients, we’re one of the UK’s best choices for retail design and visual merchandising production services.
To learn more, just reach out to our friendly team now by calling 01664 494 750, or emailing hello@wearebrd.com or filling out our contact form below.
