Over the last couple of years an increasing number of retailers have, depending upon your point of view, been introducing sustainable development programmes or jumping on the green bandwagon.
One of the things that may have caused an increased interest in environmental issues is an increased interest from the general public in these areas. The graph below shows the results from the monthly Ipsos MORI poll of political attitudes in the UK. Each month Ipsos MORI asks as a part of its political survey:
• What would you say is the most important issue facing Britain today?
• What do you see as other important issues facing Britain today?
The graph shows the percentage of respondents who have rated Pollution and Environment as the most important issue each month since October 1988. The late 1980s saw the peak of public environmental concern. For one month in July 1989 ‘Pollution and Environment’ was rated as the most important issue facing the UK (35% rated it as the most important issue – the next highest was the NHS on 29%). This surge of environmental interest probably contributed to why I decided to take a degree Environmental Science in 1991.
The importance of the issue rapidly fell away and the issue never scored above 10% from late 1991 to 1997. This brings us to the increased interest in 2007. In January 2007 19% of those surveyed rated the environment as the most important issue. There was a clear spike of interest around this point and over the course of 2007 the environment scored a higher average importance rating than for any year since the peak of interest in the late 1980s and early 90s.
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Yes but the "public" is still part of the machinery. This is being led by a strong minority (bless them). This is sending mixed signals to many retailers.
It reminds me of the internet in 1995. Recall how many simply viewed a website as funny yellow pages ad, others ignored it as a fad, and many crazy ideas arrive fast and disappeared as quickly. But a decade later the web had transformed how we do and view business.
I have followed the sustainability movement since 1990 and in the past few years I see the shift really taking hold of the mainstream - it is now generating cold dispassionate investment and is no longer just propped up by the long-necessary base of feel-good support.
Small retail is a fertile ground for innovation - once you get past the numerous stores that simply make work for owners. However, an innovative green retailer is not sustainable if it is not fiscally viable. Many, including those heralded as great examples such as Nau was a year ago, will sink. The legacy will be the creative and darwinian evolutions that emerge to inspire shoppers and to be adopted my the major players in the sector.
Today, the mainstream shopper says they want green, but their behaviour shows that they want great price, outstanding quality, superb service and convenient access first. The retail owner must understand his or her market with their head and not just act on their heart.
That said, there are certainly reasons for retail to get moving on this. They have lagged other sectors for sometime and the public is expecting more that reusable bags from their stores. Furthermore, as the bar rises, those lagging will be quickly left behind, as retail leaders find ways to layer green as another aspect of profitable business excellence. And while the consumer is struggling to define overall value, good employees are aligning with the workplace that supports their values (when they have the choice).
The challenge? Show me a profitable green dollar store and I will confirm the retail landscape forever changed. I am convinced with creative brilliance and adequate financing, this will happen (well, maybe a green two-dollar store). Far-fetched? Check out www.terracycle.net.
Cheers,
David Ian Gray
DIG360 Consulting Ltd.
www.dig360.ca
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