U.S. Retail Industry Update: Green Movement Exploited, Promoted and Advanced by Top Retailers Despite the Recession
Friday May 22, 2009
The forward motion of the green movement is continuing despite the slowdowns caused by recession, and the U.S. retail industry is being forced to respond to consumer demands for planet friendly products and environmentally responsible practices. While some retailers only see the cash register green that can be gained from promoting and exploiting this latest consumer trend, other retailers see a cause that desperately needs the cooperation of the retail industry in order to advance.
The trend of green consuming gave birth to a new store concept called the EcoShoppe, which opened in Austin, TX yesterday. Part of the Vitamin Shoppe chain, this newest store hopes to appeal to shoppers who are looking for eco friendly and fair trade products. Its offerings include green living products for your home, office, pets, kids, and personal conservation efforts.
While a recent online survey conducted by Opinion Research Corporation revealed that 35% of Americans expect companies to make and sell environmentally responsible products, it’s still not a certainty that green interest actually motivates green spending at a green destination store. Many retailers will be watching as the EcoShoppe dares to test how green desire will or will not actually translate into green purchases.
One feature of the EcoShoppe that deserves attention is their use of “seed paper” for in-store signage. The store will print its promotional signs on this special seed paper (with soy ink, of course) and instead of throwing the signs away when the promotion is over, the EcoShoppe employees will cut them up and give the pieces to customers. Customers can then plant the paper scraps in the ground in order to grow wildflowers from the seeds that were embedded into the paper in the manufacturing process.
That is an inspiring example of the kind of authentic improvement that can be made in the retail paradigm by those who genuinely care. Seed paper is pretty pricey, so props to the EcoShoppe for choosing the responsible alternative over the cheapest alternative.
For now, going green is going to demand those kinds of choices which may cost more in the short-term, but should pay off in the long-term with reputation points and invaluable word-of-mouth endorsements. That one really cool choice by EcoShoppe got my attention. And now the store is on your radar too.
Other U.S. retailers that are proving their green commitment in a tangible way earned a spot on the Environmental Protection Agency’s Green Power list for the first quarter of 2009. This EPA list recognizes American corporations that are purchasing green power to run their operations.
Wind, solar, and biomass energy are examples of “green power” which is energy that is generated from renewable resources. Businesses and consumers often have a choice to purchase green power, although to do so often means a higher utility bill. Of the top 50 green power purchasers on the EPA list, 23 of them are from the retail industry, which is a proud retail accomplishment.
Comparing the EPA list with the retail Fortune 500 list, however, provides a perspective which is not so proud. Of the 20 largest retailers in the U.S., only five of them are also major green power purchasers. Although Wal-Mart holds the top spot in the revenue rankings in the U.S., Kohl’s holds the top spot on the retail green power usage list. Since Wal-Mart takes every opportunity to brag about its “green” efforts (a/k/a cost-cutting measures), I would think if the discount giant truly cared about its greenness, that it would be quite mortified to be outgreened by a puny little competitor. Kohl's is 153 positions behind Wal-Mart in the revenue race, after all.
Did I mention that Dell and Whole Foods also purchase twice as much green power as Wal-Mart too? Not half as big, the top three green power companies have proven that they are each twice as committed.
With environmentally responsible choices available, sadly, a majority of the retail companies that have the financial resources to make greener choices are still consciously choosing not to. Unfortunately that probably won’t change in a sizable way unless consumers stage organized boycotts, shareholders invest with a conscience, or the government intervenes. Judging from the recent legislated bans on plastic bags, my crystal ball says it will be curtain number three.
Which retailers are going to contribute the most to advance the green movement within the retail industry is still questionable. Whether the green actions or inaction of retailers will get noticed is not so questionable.
Green advocates are generously vocal in both their praise and their criticism. With the unprecedented access they have to electronic media comes unprecedented accountability for retailers. Those retail organizations that make genuinely important changes will get noticed. Those that are only concerned with exploiting the trend for the benefit of their own enterprise will be noticed too.
Green retailing walks. Greenwashing talks. And Americans won’t be fooled one way or the other for long.
The trend of green consuming gave birth to a new store concept called the EcoShoppe, which opened in Austin, TX yesterday. Part of the Vitamin Shoppe chain, this newest store hopes to appeal to shoppers who are looking for eco friendly and fair trade products. Its offerings include green living products for your home, office, pets, kids, and personal conservation efforts.
While a recent online survey conducted by Opinion Research Corporation revealed that 35% of Americans expect companies to make and sell environmentally responsible products, it’s still not a certainty that green interest actually motivates green spending at a green destination store. Many retailers will be watching as the EcoShoppe dares to test how green desire will or will not actually translate into green purchases.
One feature of the EcoShoppe that deserves attention is their use of “seed paper” for in-store signage. The store will print its promotional signs on this special seed paper (with soy ink, of course) and instead of throwing the signs away when the promotion is over, the EcoShoppe employees will cut them up and give the pieces to customers. Customers can then plant the paper scraps in the ground in order to grow wildflowers from the seeds that were embedded into the paper in the manufacturing process.
That is an inspiring example of the kind of authentic improvement that can be made in the retail paradigm by those who genuinely care. Seed paper is pretty pricey, so props to the EcoShoppe for choosing the responsible alternative over the cheapest alternative.
For now, going green is going to demand those kinds of choices which may cost more in the short-term, but should pay off in the long-term with reputation points and invaluable word-of-mouth endorsements. That one really cool choice by EcoShoppe got my attention. And now the store is on your radar too.
Other U.S. retailers that are proving their green commitment in a tangible way earned a spot on the Environmental Protection Agency’s Green Power list for the first quarter of 2009. This EPA list recognizes American corporations that are purchasing green power to run their operations.
Wind, solar, and biomass energy are examples of “green power” which is energy that is generated from renewable resources. Businesses and consumers often have a choice to purchase green power, although to do so often means a higher utility bill. Of the top 50 green power purchasers on the EPA list, 23 of them are from the retail industry, which is a proud retail accomplishment.
Comparing the EPA list with the retail Fortune 500 list, however, provides a perspective which is not so proud. Of the 20 largest retailers in the U.S., only five of them are also major green power purchasers. Although Wal-Mart holds the top spot in the revenue rankings in the U.S., Kohl’s holds the top spot on the retail green power usage list. Since Wal-Mart takes every opportunity to brag about its “green” efforts (a/k/a cost-cutting measures), I would think if the discount giant truly cared about its greenness, that it would be quite mortified to be outgreened by a puny little competitor. Kohl's is 153 positions behind Wal-Mart in the revenue race, after all.
Did I mention that Dell and Whole Foods also purchase twice as much green power as Wal-Mart too? Not half as big, the top three green power companies have proven that they are each twice as committed.
With environmentally responsible choices available, sadly, a majority of the retail companies that have the financial resources to make greener choices are still consciously choosing not to. Unfortunately that probably won’t change in a sizable way unless consumers stage organized boycotts, shareholders invest with a conscience, or the government intervenes. Judging from the recent legislated bans on plastic bags, my crystal ball says it will be curtain number three.
Which retailers are going to contribute the most to advance the green movement within the retail industry is still questionable. Whether the green actions or inaction of retailers will get noticed is not so questionable.
Green advocates are generously vocal in both their praise and their criticism. With the unprecedented access they have to electronic media comes unprecedented accountability for retailers. Those retail organizations that make genuinely important changes will get noticed. Those that are only concerned with exploiting the trend for the benefit of their own enterprise will be noticed too.
Green retailing walks. Greenwashing talks. And Americans won’t be fooled one way or the other for long.
Great article. The opportunity for Retailers in Sustainability is to connect with the Consumer on two fronts – Clarity and Price/Value. It is unclear for most consumers walking down an aisle how product choices are ranked in terms of impact on the environment. Retailers can provide more category/aisle level clarity to shoppers in how they architect in-store communication.
Secondly, shoppers’ believe “green” products cost more, and in most cases they do. Retailers should leverage Private Label and the economics of a category to drive down price. Today, Fresh is more expensive than Processed.
Andy
Retailers should pay attention to the real pluses offered by green products and beware of counting on hype. The pluses are due to the care and quality often associated with green products. The hype comes from the eco-friendly stories that are used to sell them.
green is less and less is to do what people need and avoid mass productions of millions of things nobody needs.
As a veteran retailer Store Planner, I have seen the “green movement” come and go at least three times over the last thirty years.
Unfortunately, consumers all too often put dollars and what’s in it for me in front of what is right to do. I do believe that the “green” movement has more traction than ever before, but it might not become common practice to put light green in front of dark green dollars until the next generation rules the retail consumer demographics.
Body Shop, one of the first retailers to chant “green” and practice what it preached, did not win by going green. Win meaning have a thriving business, but they were winners when it came to save the planet and they can sleep well at night knowing they were a pioneer.
At least we are trying and with a little bit of reminding about the importance of “green” it will become a given in everyone’s thought process.