Embracing sustainability: insights from retail industry leaders
At the Retail Technology Show, industry leaders discussed the need to integrate sustainability into business models. Speakers highlighted aligning employee incentives with sustainability goals, promoting the circular economy, adapting to online returns logistics, and ensuring transparency in sustainability efforts. Here we share the key takeaways from the event.
At the Retail Technology Show, we heard a number of industry leaders including M&S, eBay, Abel & Cole, and Pentland, discuss the importance of integrating sustainability into business models and market strategies. The discussions centred around the need for corporations to actively listen and respond to consumer trends and demands, while also making a positive impact on the environment and society.
Here, we cover some of the insights shared by speakers at the event, highlighting examples of companies taking action and emphasising the significance of transparency in sustainability efforts.
Aligning Goals for Positive Impact
Sara Brennan, Positive Brand Director of Pentland, emphasised the importance of aligning employee incentives with sustainability goals. Pentland revised their bonus structure to include ESG (Environmental, Social, and Governance) achievements alongside profitability. By doing so, Pentland ensures that employees are motivated to drive positive change. Additionally, the company works closely with their brands, engaging with the community in meaningful ways. An example cited was their collaboration with Speedo to promote swimming lessons for children.
Promoting the Circular Economy
Roz Bridges, Acquisition Manager at eBay, shared how the company has responded to the growing demand for pre-loved or pre-used products. eBay actively partners with businesses to sell refurbished items that would have otherwise been discarded in landfills. To highlight their commitment to sustainability, eBay launched campaigns like the Love Island sponsorship focused on pre-loved fashion, where participants wore second-hand clothes. During the consumer-driven event Black Friday, eBay only advertised pre-loved and refurbished items, foregoing the promotion of brand-new products.
A circular economy is a production and consumption model involving design, production, retail, consumption, reuse and repair, collection, and recycling.
Adapting to Online Returns Logistics
Kevin Davis from M&S discussed the need to evolve business models to meet customer expectations around online returns logistics. He emphasised that a one-size-fits-all approach is no longer sufficient; customers now seek multiple options for returns, including in-store, postal, and drop-off returns. Transparency in the returns process is crucial, as returns impact every business unit.
Integration of the business around the returns process and access to data is essential for efficient management. Davis highlighted emerging technologies such as true-to-size tech and trustworthy customer data, underscoring the importance of only asking customers relevant questions and analysing the collected data effectively. Furthermore, returns management systems and tracking present significant opportunities for improvement. Accountability across the supply chain and upskilling across the organisation were also stressed as vital for effectively managing returns and developing new solutions.
Transparency and Avoiding Greenwashing
All speakers spoke of the significance of transparently communicating sustainability efforts. It was agreed that companies must ensure their actions do not fall into the trap of greenwashing or mere box ticking. Consumers expect genuine commitment and measurable impact when it comes to sustainability initiatives. Companies must go beyond signalling their dedication to sustainability and demonstrate tangible results and progress.
The Imperative for Change
At Aspire, we believe that building new business models, products, and services with sustainability at the forefront is increasingly becoming a necessity. Companies need to critically evaluate the environmental and social impact of their offerings and find measurable ways to account for their overall sustainability performance.
The insights shared by industry leaders at The Retail Tech Show underscore the growing importance of integrating sustainability into retail business models.
Companies should align their goals and incentives to drive positive impact, adapting to changing consumer expectations. Sustainable practice is no longer a mere checkbox exercise but an expectation in the retail industry. By embracing sustainability and actively addressing environmental and social concerns, companies can forge a path towards a more prosperous and responsible future.
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