Table of Contents
Issues in the Market
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- Main themes
- Definition
- Retail Sales data
- Abbreviations
Future Opportunities
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- Giving shoppers more reasons to buy ‘green’
- Taking green consumerism to the next stage
- Making information more meaningful
Market in Brief
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- Consumer resolve weakened by the impact of recession
- Consumers less inclined to pay green or ethical price premiums
- Not all retailers delivering improvements
- Major reductions in carbon emissions planned in the next ten years
- Increase in environmental legislation is forcing retailers to take action
- Retailers’ green initiatives not improving levels of consumer trust
- Momentum building for greener living
- Consumer support for recycling and waste reduction remains widespread
Internal Market Environment
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- Key points
- Top priorities for retailers are energy efficiency and emissions reduction
- Measuring environmental impact
- But not all companies make this information available
- Will disclosure become mandatory?
- Who has the highest carbon intensity?
- Who is making the most progress on carbon intensity?
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- Figure 1: Percentage annual change in absolute and relative carbon emissions 2007/08-2008/09
- Waste reduction a key objective
- Who generates the most waste relative to sales?
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- Figure 2: Waste relative to sales, 2006/07-2008/09
- Helping to reduce post-consumer waste by design and specification
- HFCs – supermarkets refrigeration under scrutiny
- Sustainable sourcing factors and issues
- Local sourcing factors and issues
- Ethical sourcing factors and issues
- Is Fairtrade fair?
- The market for green and ethical products has shown strong growth
- More recent trends convey mixed messages
Broader Market Environment
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- Key points
- Climate Change Act now law
- Carbon Reduction Commitment effective in April 2010
- Climate change legislation stimulating greener products
- Rising unemployment – a catalyst for change?
- Use of financial instruments to stimulate greener buying behaviour
- Carbon labelling rising up the agenda
- Waste reduction driven by government
- Carrier bags – 50% reduction target nearly hit
- Recession undermining UK recycling strategy
Who’s Innovating?
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- Key points
- Greener store initiatives
- Greener packaging
- Refillable and returnable packaging
- Compostables an alternative to recyclable
- Unambiguous labelling
- Greener services
- Waitrose wants bikers
- Offsetting (online) spending
- Greener products
Top 12 UK Retail Groups’ Ethical and Green Strategies
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- Key points
- Tesco
- J Sainsbury
- Asda
- Morrisons
- Co-operative Group
- Marks & Spencer
- Alliance Boots
- John Lewis Partnership
- Home Retail Group
- DSG International
- Kingfisher
- Next
The Importance of Ethical and Environmental Issues to Consumers
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- Key points
- Retailers know that consumers really do have a conscience
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- Figure 3: Trends in lifestyle statements on social/political/ethical and environmental issues, 2005-09
- Ethical and green issues important to a majority of respondents
- More people rate these issues as important than 12 months ago
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- Figure 4: Importance attached to ethical and environmental issues when shopping, March 2007, June 2008 and July 2009
- Widespread basis of concern
- Minor bias to more affluent consumers
- As many Es as ABs rate these issues as very important
- Young affluent consumers need reminding of their responsibilities
- Children a catalyst for change
Which Retailers Do Consumers Trust?
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- Key points
- Retailers slowly building trust
- Only John Lewis/Waitrose built trust in both 2008 and 2009
- No gain from Plan A for Marks & Spencer
- Boots significantly underperforming
- Primark has not suffered from bad publicity
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- Figure 5: Consumer trust in retailers, March 2007, June 2008 and July 2009
- Co-op must trusted relative to use
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- Figure 6: Consumer trust in retailers compared to usage, June 2009
What People Think About Green and Ethical Issues
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- Key points
- Clothing shoppers seeking reassurance
- Delegated trust
- Widespread cynicism
- Increasing reasons to buy
- Risk of a backlash greater on ethical than environmental failings
- Organic foods under pressure in the recession
- Organic – increasing reasons to buy
- Nearly one in five cannot afford to be green or ethical
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- Figure 7: Consumer attitudes towards ethical and environmental issues, July 2009
- Widespread demand for reassurance on ethical provenance
- Enlightened self-interest widely recognised
- Risk of boycotts greatest among more affluent
- ABs and families prominent in cutting back on organic foods
- Younger people ignoring the issues due to financial pressures
- Leading clothing retailers stand to gain from stronger ethical labelling
- Response to ethically-inspired boycotts strong among shoppers of leading retailers
- Impact of economic downturn on attitudes and behaviour
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- Figure 8: Statements agreed on ethical and environmental issues – any adverse reaction to financial constraints (netted), July 2009
- Greater numbers of less affluent people affected
- Cost and convenience override green and ethical issues
- ABC1 pre-families and families directly affected
Has People’s Buying and Behaviour Got Greener?
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- Key points
- More consumers actively going green
- Disposable bags on the way out
- Need for consistency
- Car use under pressure – but fuel price growth less of an issue
- No increase in interest in carbon labelling
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- Figure 9: Greener behaviour and buying, June 2008 and July 2009
- Green momentum building
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- Figure 10: Repertoire of effort to be more environmentally-friendly, July 2009
- Pre-family adults lagging in the conversion to low-energy bulbs
- Younger people and men less likely to be using reusable bags
- Switching off the standby mode has broad appeal
- Less affluent householders slowest to adopt energy-saving technology in the home
- Most affluent are cutting down on car use
- M&S, Co-op and Morrisons shoppers have highest take-up of reusable bags among grocers
- Carbon labelling hot spots
Perceptions of Packaging and Recycling
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- Key points
- Awareness and responsiveness to packaging issues high
- Sustained levels of active recycling
- Complacency about rubbish and recycling?
- Packaging issues not important enough to influence shopping behaviour
- Sustained interest in reusables
- Time to consider other packaging options
- Low levels of confusion about recyclable materials…
- … but people want retailers to do more to reduce waste
- Recyclable packaging needs local support
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- Figure 11: Consumer attitudes towards packaging and recycling, July 2009
- Men and younger people lag behind on recycling
- Retailers held responsible for the amount and recyclability of packaging
- Widespread support for reusable bottles
- All shoppers demanding on-packaging specification
- Shoppers of all the leading grocers are supportive of reusables
Appendix – Internal Market Environment
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- Figure 12: Leading 12 retailers’ turnover, 2006/07-2008/09
- Figure 13: Leading 12 retailers’ trading area, 2006/07-2008/09
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- Figure 14: Leading 12 retailers’ CO2 emissions, 2006/07-2008/09
- Figure 15: Leading 12 retailers’ CO2 emissions relative to turnover, 2006/07-2008/09
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- Figure 16: Leading 12 retailers’ CO2 emissions relative to space, 2006/07-2008/09
- Figure 17: Leading 12 retailers’ waste generated relative to turnover, 2006/07-2008/09
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Appendix – The Importance of Ethical and Environmental Issues to Consumers
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- Figure 18: Agreement with lifestyle statements on social/political/ethical and environmental issues, by demographics, 2009
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- Figure 19: Agreement with lifestyle statements on environmental issues, by demographics, 2009
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- Figure 20: Agreement with lifestyle statements on environmental issues, by demographics, 2009
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- Figure 21: Importance of climate change, environment and ethical issues when shopping, by demographics, July 2009
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- Figure 22: Importance of climate change, environment and ethical issues when shopping, by stores visited in last 12 months, July 2009
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- Figure 23: Importance of climate change, environment and ethical issues when shopping, by stores visited in last 12 months, July 2009
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- Figure 24: Importance of climate change, environment and ethical issues when shopping, by stores visited in last 12 months, July 2009
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- Figure 25: Stores visited in the last 12 months, by importance of climate change, environment and ethical issues when shopping, July 2009
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Appendix – What People Think About Green and Ethical Issues
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- Figure 26: Attitudes towards ethical and environmental issues, by demographics, July 2009
- Figure 27: Attitudes towards ethical and environmental issues, by demographics, July 2009
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- Figure 28: Attitudes towards ethical and environmental issues, by stores visited in last 12 months, July 2009
- Figure 29: Attitudes towards ethical and environmental issues, by stores visited in last 12 months, July 2009
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- Figure 30: Attitudes towards ethical and environmental issues, by stores visited in last 12 months, July 2009
- Figure 31: Stores visited in last 12 months, by attitudes towards ethical and environmental issues, July 2009
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- Figure 32: Stores visited in the last 12 months, by attitudes towards ethical and environmental issues, July 2009
- Figure 33: Agreement with statements on ethical and environmental issues – any adverse reaction to financial constraints (netted), by demographics, July 2009
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- Figure 34: Stores visited in last 12 months, by agreement with statements on ethical and environmental issues – any adverse reaction to financial constraints (netted), July 2009
- Figure 35: Repertoire of agreement with statements on ethical and environmental issues – any adverse reaction to financial constraints, July 2009
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- Figure 36: Repertoire of agreement with statements on ethical and environmental issues – any adverse reaction to financial constraints, by demographics, July 2009
- Figure 37: Attitudes towards ethical and environmental issues, by repertoire of agreement with statements on ethical and environmental issues – any adverse reaction to financial constraints, by demographics, July 2009
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- Figure 38: Stores visited in last 12 months, by repertoire of agreement with statements on ethical and environmental issues – any adverse reaction to financial constraints, by demographics, July 2009
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Appendix – Has People’s Buying and Behaviour Got Greener?
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- Figure 39: Efforts to be more environmentally-friendly, by demographics, July 2009
- Figure 40: Efforts to be more environmentally-friendly, by demographics, July 2009
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- Figure 41: Efforts to be more environmentally-friendly, by stores visited in last 12 months, July 2009
- Figure 42: Efforts to be more environmentally-friendly, by stores visited in last 12 months, July 2009
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- Figure 43: Efforts to be more environmentally-friendly, by stores visited in last 12 months, July 2009
- Figure 44: Stores visited in last 12 months, by efforts to be more environmentally-friendly, July 2009
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- Figure 45: Repertoire of efforts to be more environmentally-friendly, by demographics, July 2009
- Figure 46: Efforts to be more environmentally-friendly, by repertoire of efforts to be more environmentally friendly, July 2009
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Appendix – Perceptions of Packaging and Recycling
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- Figure 47: Agreement with statements on packaging and recycling, by demographics, July 2009
- Figure 48: Agreement with statements on packaging and recycling, by demographics, July 2009
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- Figure 49: Agreement with statements on packaging and recycling, by stores visited in last 12 months, July 2009
- Figure 50: Agreement with statements on packaging and recycling, by stores visited in last 12 months, July 2009
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- Figure 51: Agreement with statements on packaging and recycling, by stores visited in last 12 months, July 2009
- Figure 52: Stores visited in last 12 months, by agreement with statements on packaging and recycling, July 2009
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- Figure 53: Stores visited in last 12 months, by agreement with statements on packaging and recycling, July 2009
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