The sustainability agenda has become a priority for many retailers globally, driven by consumer expectations and governmental legislation. Retailers recognise the imperative for change and are taking actions, particularly in the areas of climate-positive initiatives and the circular economy. This briefing includes six retailers’ sustainability strategies: Amazon.com, Inc, Decathlon SA, Fast Retailing Ltd (FRC), Natura &Co, Recreational Equipment Inc (REI) and Vinted UAB.
This report comes in PPT.
Nearly half of global consumers report actively working to address climate change, forcing retailers to prioritise sustainability. Despite consumer advocacy for environmental concerns, however, willingness to pay more for sustainable products is limited. As a result, there is a growing expectation for retailers to offer sustainability as a standard feature at no extra cost.
Technological advancements are key in shaping sustainability in retail, driving efficiency, innovation and eco-friendly practices. From smart supply chains to renewable energy integration, these technologies play a pivotal role in achieving a sustainable future. Retailers acknowledge this and are continuing to invest in the implementation of technological solutions.
While the circular economy goes beyond resale platforms, these types of platforms are crucial components. Retailers actively participate in the resale market, enabling consumers to resell products back to them or other consumers. This allows retailers to contribute to sustainability targets while they seek to capitalise on a rapidly developing market.
Retailers face challenges in driving substantial change due to disorganised efforts, a lack of a unified vision and clear measurement. The anticipation is that regulatory influence, particularly from the EU's leading environmental regulations, will play a pivotal role in compelling progress.
Retailers acknowledge the need for climate actions to minimise their impact, focusing on recycling and energy efficiency. Uncertainty lingers due to dependence on partners for Scope 3 emissions, which result from activities outside organisations’ control but influenced indirectly within their value chains. To address emissions effectively, retailers focus on both their operations and partners' practices.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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