Sustainability in Retail: How to Please Consumers Looking for Eco-Friendly Brands

By Nicoleta Niculescu

Sustainability, ethical shopping, environmentally friendly. Are these just retail buzzwords or are people actually changing the way they act and shop?

Climate change, pollution, and limited resources are big problems that have started to affect our day-to-day lives. This is why people are trying to make small changes everyday in order to help the environment and live better lives.

You might be wondering what does it have to do with retail? Well, the simple act of shopping, the types of products you sell, the way you promote your products—all of them have an impact on the environment. Nowadays, shoppers have turned into conscious consumers who always read the labels, select eco-friendly brands and products, and are quite selective when it comes to the retail chains they shop at.

Before we dig deeper into the way you can please these consumers, let’s start out by explaining some of the new terms that appear on the retail market.

Understanding sustainability in retail

Sustainability is about meeting our own needs without compromising the ability of future generations to meet their own needs. It applies to different resources, from natural ones up to social ones.

When it comes to sustainability in retail, people expect brands to focus on producing their merchandise in a sustainable way. Also, they want retailers to make some changes that can help the environment.

But what about ethical shopping? Is it different from sustainable shopping?

Ethical shopping focuses both on the environment and on the way their products are made and the people who make their products. Ethical shopping is human-centered. Shopping ethically means that you focus on worker protections at every stage of production.

Another important term related to sustainability is green marketing. Green marketing is the process of advertising products or services based on their environmental benefits. They are either environmentally friendly or produced in an environmentally friendly way.

Why should you focus on sustainable retailing?

The most important reason for focusing on sustainable retailing is to protect the environment while still reaching more customers. Shoppers want to buy products that don’t affect the environment, that actually have a good impact on their health.

"Seventy percent of consumers want to know what the brands they support are doing to address social and environmental issues," according to one survey.

The newest conscious consumer segment, also known as the CARLY (can’t afford real-life yet) shopper, focuses on important environmental issues. These young shoppers will only shop from brands and retailers that offer them sustainable alternatives.

How to please the eco-conscious consumer

1. Be sustainable in everyday practices

Try to find energy-efficient equipment. Switch regular incandescent light to LEDs or CFLs. They are also more cost-efficient compared to the regular light bulbs. This way, you can protect the environment and your budget at the same time.

In-store marketing is essential for brick-and-mortar stores, but you don’t have to use a lot of plastic and cardboard to implement a campaign. Find alternatives to wasteful cardboard POS displays. For instance, you can use a robotic POS display or a digital display for your in-store advertising campaign.

2. Limit plastics use

Packaging keeps products fresh and in good condition, but most packing solutions are not environmentally friendly. Plastics usage needs to be limited, especially in retail stores. While zero-packaging may seem fairly unrealistic now, switching from plastic to eco-friendly materials is a big step.

3. Include green marketing in your strategy

Show the conscious consumer that you care about the planet and about your customers at the same time. Inform customers of the changes you’ve made. Include sustainability in the story of your brand. Talk about your future plans and what you want to change to make retailing a more sustainable and eco-friendly industry.

4. Don't practice greenwashing

One thing that upsets everyone, not just the conscious consumer? Being lied to. Don’t tell your customers that your brand is bio or that it is 100% natural if it isn’t. Greenwashing is a practice in which a brand or a retailer makes misleading statements about the sustainability of its products.

If you don’t put all of the ingredients on the label or you claim that your product contains only non-toxic ingredients without it being true, you will end up losing loyal customers and maybe even end up with a lawsuit. For some it might not seem like a big deal, but various brands, including The Honest Company (Jessica Alba’s brand), have been sued because the labels of their products were misleading.

Sustainability for small businesses

While it might be easy for bigger retailers to adapt their processes and focus on sustainability, it is harder for smaller businesses that don’t have enough resources. However, it is not impossible for small retail businesses to make small changes and become known as companies that care about the environment.

• Use more natural light. If you don't have it in your budget to change all of the lighting in your store, you might want to take advantage of what nature already provides. If your store has a lot of windows or natural lighting sources, you can rely on that during the day and turn on the lights only when it's dark.
• Check heating and cooling systems regularly. Conducting these checkups on a regular basis helps you to ensure that systems are performing at full capacity and not wasting unnecessary energy and resources.
• Try email receipts. Email receipts are a win-win for you and the environment. Ask customers for their email address or offer an app where customers can access their receipts.

RELATED: 6 Visual Merchandising Mistakes That Retailers Make