Four sustainability tips for small retailers

Four sustainability tips for small retailers

Sustainability is becoming increasingly important. Even "smaller" retailers need to respond to this. However, they have far fewer people and resources available than large companies. In this blog, we provide four concrete tips for the 'little ones'.

This article previously appeared on www.retailtrends.nl | image: stock photo.

The demand for sustainable business and sustainable products is increasing. Consumers are becoming increasingly aware of the importance of issues such as climate, the conscious use of scarce raw materials and good working conditions for the people who make our products. This trend will continue to grow, driven by all the publicity surrounding the theme of sustainability, the role NGOs are playing in this regard and the new generation of consumers ('Generation Z') who have sustainability even higher on their agenda.

'Demand for sustainable business and sustainable products continues to grow'

Retailers need to prepare for this, and many retailers are already doing so. This is more difficult for smaller retailers than for larger ones because they can allocate fewer resources (money, staff, management capacity) for this. What they need to do:

- Engage with brands and make new choices; - Seek collaboration with others to create their own products; - Look where there is low-hanging fruit, including to cut costs; - Say what you do and do what you say,

Get into the conversation with brands and make new choices

Retailers who sell others' brands need to receive sustainability information from those brands in order to then tell the story to customers. So start the conversation with brands about that and make sure you know the stories behind them well. Where are the products made? Under what (labor) conditions? What materials are used? What is done to reduce CO2 emissions and use less water, environmentally harmful substances and packaging materials? If the explanation is insufficient, consider choosing other brands that have a better and future-proof story. 'Collecting' on the sustainability aspect is a little-used strategy that could be used much more often.

'Collecting on sustainability is a new strategy'

Seek collaboration with others to create own products

In order not to be dependent on the sustainability strategy of brands and manufacturers, you can also (have) products made yourself, under your own brand or label. Because you then direct the entire value chain from design to sale, you can inform the customer firsthand about all facets surrounding sustainability. Own products have other advantages: less dependence on brands, more opportunities to differentiate yourself from competitors and a higher margin in euros. Most smaller retailers cannot do this alone. In that case, seek cooperation with others, such as through purchasing associations or industry associations.

Look where there is low-hanging fruit, also to save costs

In addition to more complicated topics such as "sustainability throughout the production chain," many relatively simple opportunities also arise from the sustainability theme. Concrete results can be achieved quickly in many areas: the 'low hanging fruit' or quick wins. Think of moving to a building with a better energy label, replacing lighting with LED lights or investing in solar panels. Picking this low-hanging fruit has another immediate benefit: costs are saved. This cuts both ways.

'Saving energy is not only good for sustainability. It also saves costs'

Say what you do and do what you say

It is important to explain to customers what you are doing in terms of sustainability. Do you select brands on their sustainability story? Do you have your own products whose sustainability aspect you can clearly explain? What are you doing in terms of energy savings and what are the benefits? Many large retailers consider these and other sustainability questions at length by creating a comprehensive sustainability report.

For smaller retailers, this is too complicated, too time-consuming and too costly. However, it can be much simpler, on one or a few A4 sheets. What were the three main goals for this year? What has come out of them? And what will be the goals for the coming year? The advantage of such a "sustainability report light" is that it is also easier for customers to read than a bulky book. The retailer can of course share the report via the website and distribute it via e-mail and social media. It can also be made into 'in-store' material, such as posters or in-store screens showing the key issues.

In short, sustainability is also an important aspect for smaller retailers to act on. They have fewer people and resources for this than larger players. By engaging with brands, making their own products, picking low-hanging fruit around energy savings, for example, and making a simple report, they can still respond well to their customers' increasing demand for sustainability.