Table of Contents
Issues in the Market
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- Main themes
- Definition
- Retail sales data
- Abbreviations
Insights and Opportunities
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- Recycling and waste are top of mind
- Creating more opportunities for reusability
- Ensuring genuine action shines through the greenwash
- Meaningful action rather than tokenism
- Collaboration enhances the industry’s image
- Ethical tribalism makes sense
- Is the time right to establish a national eco-store brand?
Market in Brief
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- What are consumers’ priorities?
- Do consumers understand the issues?
- What do they want retailers to be doing?
- What is the degree of scepticism about retailers’ motives?
- How do retailers’ strategies compare?
- Is there too much greenwash?
- How do they compare on carbon emissions, energy consumption and waste management?
- How does this all affect the relationship between retailers and suppliers?
Fast Forward Trends
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- Trend 1: Moral Brands
- Definition
- What next?
- Trend 2: Eco and Ego
- Definition
- What next?
- Trend 3: Greenfluencers
- Definition
- What next?
Industry Insights
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- Key points
- Retailers’ perceptions of consumers’ current priorities
- Energy saving and waste reduction top the list
- Saving money is main driver of change
- Consumers looking to retailers to make choices on their behalf
- Ethical sourcing seen as being of growing concern to consumers
- Retailers want government leadership in key areas
- Clear up carbon footprint confusion
- Recycling standards and infrastructure
- Energy efficiency labelling
- Promoting energy efficiency
- Get tougher on green claims
- Defining what is local
- Developing a greener organisational culture
- Full co-operation needed from staff
- Cutting transport emissions a major challenge
- Aiming for carbon-neutral operations
- Setting the (right) baseline
- Setting targets
- Refrigeration a major issue for food retailers
- Waste matters
- Delivering on commitments
- Zero waste to landfill
- Boosting recycling rates of problem materials
- Switching away from problem materials
- It’s about more than just packaging
- Reducing carrier bag usage
- Ethical sourcing strategies
- Retailers perceive themselves to be doing as much as they can on ethical issues
- Retailers with a long supply chain are vulnerable
- Several companies rejected the view that they should be part of the ETI
- Future directions in greener retailing
- Greening the supply chain
- Collaborative savings
- Reducing food waste
- Unravelling complexity in sourcing issues
- Delivering on responsibilities
Internal Market Environment
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- Key points
- Climate change is a competitive issue
- Emissions and energy management – context
- Emissions performance – food retailers have it all to do
- Emissions relative to space
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- Figure 1: CO2 emissions of top 12 UK retail organisations, relative to space occupied, 2004/05-2007/08
- Emissions relative to turnover
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- Figure 2: CO2 emissions of top 12 UK retail organisations, relative to turnover, 2004/05-2007/08
- Waste management – context
- Waste management – much more work to do
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- Figure 3: Waste generated by top 12 UK retail organisations, relative to turnover, 2004/05-2007/08
- Food production standards under scrutiny
- Tesco chickens in the front line of animal welfare debate
- Use of human sewage sludge acknowledged by two leading grocers
- Local sourcing – what is local?
- Imports versus local; which has lowest environmental impact?
- Can retailers be trusted on environmental and ethical issues?
- Enlightened self-interest prevails
- Many grounds for mistrust…
- …but big businesses can make a bigger impact
- Greener and ethical products a growing market
- The market for greener and ethical products is growing strongly…..
- …and creating new retailing opportunities
- What impact will the economic downturn have on consumers and retailers?
Broader Market Environment
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- Key points
- Britain will be greener in 2008/09
- Energy-intensive lifestyles are a key contributor to climate change
- Opportunities to retail greener products
- Energy saving and energy-efficient
- Energy replacement
- Waste reduction
- Retailers have to get greener
- Disclosure no longer optional
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- Figure 4: Retail companies responding to CDP5 survey, 2007
- Drawing the carbon boundary
- Taking the lower-carbon option
- Need to respond to changing green agenda
- Legislation and greener retailing
- Climate Change Bill has a direct impact on large retailers
- Waste management strategy and retailers
- Carrier bags – a prime government target
Who’s Innovating?
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- Retailers leading the way to a greener society…
- …aids the development of a green revenue stream
- Responsible retailing can have a downside
- Greener stores a prerequisite for responsible retailing
- Carbon-positive building design
- Greening the supply chain
- Product provenance of increasing importance
- Greening the checkout
- Greening the home delivery network
- Reducing packaging
- Reducing waste
- Increasing recycling rates
The Importance of Ethical and Environmental Issues to Consumers
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- Key points
- Ethical and green issues important to the majority of respondents
- No lessening of interest over the last 16 months
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- Figure 5: Importance attached to ethical and environmental issues when shopping, 2007 and 2008
- Most affluent show greatest concern and are most receptive to responsible spending
- Uncommitted young affluent consumers need reminding of their responsibilities
- Children a catalyst for change
- More less affluent consumers than better-off consumers rate these issues as Very Important
- As recession looms less affluent consumers’ pressing economic concerns take priority
- Narrow variation between retailers implies need for stronger customer communications
- Amazon and John Lewis are most successful at attracting those giving an ‘Important’ rating
- A higher proportion of Co-op shoppers responded 10 than 1
Which Retailers Do Consumers Trust?
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- Key points
- Scepticism increasing as few retailers improve levels of trust
- Marks & Spencer is the UK’s most trusted retailer
- Consumers losing faith in leading grocers
- John Lewis/Waitrose building trust
- Boots’ new owners neglecting the brand?
- Other retailers need to do more to win consumer confidence
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- Figure 6: Consumer trust in retailers, 2007 and 2008
- Using this indicator
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- Figure 7: Consumer trust in retailers compared to usage, June 2008
What Do People Think and How Do They Behave?
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- Key points
- Consumers have high expectations of retailers on these issues
- Cynicism widespread and increasing
- More consumers demanding of assurances on ethical sourcing
- Consumer backlash cannot be discounted
- Media more influential than pressure groups
- Ineffectiveness of individual efforts a concern
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- Figure 8: Consumer attitudes towards ethical and environmental issues, June 2008
- Widespread cynicism is broad based
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- Figure 9: Consumer attitudes towards ethical and environmental issues, by age and socio-economic group, June 2008
- Ethical labelling a means of engaging with young affluent consumers
- Risk of boycotts greatest among more affluent
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- Figure 10: Consumer attitudes towards ethical and environmental issues, by age and socio-economic group, June 2008
- Old age pessimists
- Pressure groups failing to engage younger people
- Leading clothing retailers will gain from ethical labelling
- Response to ethically inspired boycotts strong among shoppers of leading retailers
Focus on Food – What Do People Think and How Do They Behave?
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- Key points
- Local food and loose produce at the top of the consumer’s agenda
- Consumer sentiment is against prepacked produce
- High interest in locally produced food
- Fair miles not food miles?
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- Figure 11: Consumer attitudes towards ethical and environmental issues when shopping for food, June 2008
- Convenience-oriented shoppers need convincing about loose produce
- Wide support for more locally produced food
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- Figure 12: Consumer attitudes towards ethical and environmental issues when shopping for food, June 2008
- ABs being more responsible about food miles
- John Lewis/Waitrose shoppers are the most environment- and ethically aware
- Not enough locally produced food available?
- Asda’s shoppers are least environment- and ethically aware
Has People’s Buying and Behaviour Got Greener?
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- Key points
- Consumers actively going green
- High-profile campaigns have produced immediate results
- Consumers not so quick to make their homes greener
- Car use under pressure – home shopping to benefit?
- Green energy slow to build
- Carbon labelling poised to make an impact
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- Figure 13: Greener behaviour and buying, June 2008
- Families leading the conversion to low-energy bulbs
- Reusable bags to become standard
- Men need winning over to reusables
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- Figure 14: Greener behaviour and buying, by age and socio-economic group, June 2008
- Switching off the standby mode has broad appeal
- Less affluent householders slowest to adopt energy-saving technology in the home
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- Figure 15: Greener behaviour and buying, by age and socio-economic group, June 2008
- Most affluent are cutting down on car use
- Fuel savers are stay-at-home shoppers
- DIY retailers failing to exploit interest in energy saving
- Charging for bags cuts down use?
Perceptions of Packaging and Recycling
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- Key points
- Awareness and responsiveness to packaging issues increasing
- Active recycling reaches new high
- High awareness of rubbish and recycling
- More people think that retailers need to do more
- Upsurge of interest in reusables
- Limited evidence of product boycotts based on negative perceptions of packaging
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- Figure 16: Consumer attitudes to packaging and recycling, June 2008
- Men and younger people lag behind on recycling
- Retailers need to reduce the amount of packaging
- Widespread support for reusable bottles
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- Figure 17: Consumer attitudes to packaging and recycling, by age and socio-economic group, June 2008
- Amazon and John Lewis shoppers most demanding
- Shoppers of all the leading grocers are supportive of reusables
Consumer Typologies
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- Key points
- Identifying targets
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- Figure 18: Consumer typologies, June 2008
- Group 1: Green and Ethical Crusaders (35%)
- What do they think?
- Who are they?
- Why are they important?
- Group 2: Sceptics (36%)
- What do they think?
- Who are they?
- Why are they important?
- Group 3: Apathetic (29%)
- What do they think?
- Who are they?
- Why are they important?
Top 12 UK Retail Groups’ Ethical and Green Strategies
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- Key points
- Overview
- Tesco
- J Sainsbury
- Asda
- Morrisons
- Co-operative Group
- Marks & Spencer
- Alliance Boots
- KPIs
- John Lewis Partnership
- Home Retail Group
- DSG International
- Kingfisher
- Next
Brand Elements
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- Retail more trusted, ethical, environmental and socially responsible than average
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- Figure 19: Attitudes towards brands, 2007-08
- Health and beauty are most ethical categories, beauty most so
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- Figure 20: Retail brand category averages for esr, 2007-08
- All brands ESR Map
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- Figure 21: Environmental and social responsibility of brands, retail versus all, 2007-08
- Retail brand map
- Body shop sweeps the board
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- Figure 22: Environmental and social responsibility of retail brands, 2007-08
- Food retail brands
- The Co-operative sets the pace
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- Figure 23: Environmental, social responsibility and reputation of food retail brands, 2007-08
- Clothing retail brands
- M&S leads the field, Next loses most ground followed by Sainsbury’s
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- Figure 24: Environmental, social responsibility and reputation of clothing retail brands, 2007-08
- Round up
Appendix – The Importance of Ethical and Environmental Issues to Consumers
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- Figure 25: Importance attached to climate change, the environment and ethical issues when shopping, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownership, June 2008
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- Figure 26: Importance attached to climate change, the environment and ethical issues when shopping, by stores visited for general shopping, June 2008
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Appendix – What Do People Think and How Do They Behave?
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- Figure 27: Attitudes towards ethical and environmental issues, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownership, June 2008
- Figure 28: Attitudes towards ethical and environmental issues, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownershipup, June 2008
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- Figure 29: Attitudes towards ethical and environmental issues, by stores visited for general shopping, June 2008
- Figure 30: Attitudes towards ethical and environmental issues, by stores visited for general shopping, June 2008
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Appendix – Focus on Food – What Do People Think and How Do They Behave?
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- Figure 31: Attitudes towards buying fresh produce, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownershipoup, June 2008
- Figure 32: Attitudes towards buying fresh produce, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownership, June 2008
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- Figure 33: Attitudes towards buying fresh produce, by stores visited for general shopping, June 2008
- Figure 34: Attitudes towards buying fresh produce, by stores visited for general shopping, June 2008
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Appendix – Has People’s Buying and Behaviour Got Greener?
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- Figure 35: Environmentally friendly behaviour, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownership, June 2008
- Figure 36: Environmentally friendly behaviour, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownership, June 2008
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- Figure 37: Environmentally friendly behaviour, by stores visited for general shopping, June 2008
- Figure 38: Environmentally friendly behaviour, by stores visited for general shopping, June 2008
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Appendix – Perceptions of Packaging and Recycling
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- Figure 39: Attitudes towards packaging, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownership, June 2008
- Figure 40: Attitudes towards packaging, by gender, age, socio-economic group, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, commercial TV viewing, supermarket usage, household size and car ownership, June 2008
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- Figure 41: Attitudes towards packaging, by stores visited for general shopping, June 2008
- Figure 42: Attitudes towards packaging, by stores visited for general shopping, June 2008
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Appendix – Consumer Typologies
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- Figure 43: Consumer typologies, by gender, age, socio-economic group, marital status, lifestage, ACORN category, commercial TV viewing, region, daily newspaper readership, supermarket usage, household size, car ownership, detailed lifestage groups, presence of children and Mintel’s Special Groups, June 2008
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- Figure 44: Consumer typologies, by attitudinal and behavioural statements, June 2008
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Appendix – Leading Retailers by Turnover
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- Figure 45: Leading 12 UK retail groups, by turnover, 2004/05-2007/08
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