How to be a sustainable retailer

Those working in the fine food world can no longer just pay lip service to sustainability, it’s something consumers are increasingly expecting them to be on top of

The modern consumer in speciality retail demands so much more from the stores they choose to visit. As well as expecting a cornucopia of the very best ingredients and produce, and personable, knowledgeable service, they’re taking businesses’ claims around sustainability much more seriously.

A report released by FMCG Gurus revealed 32% of shoppers wanted to avoid ingredients that could be harmful to the environment while, according to Euromonitor, 60% of consumers are choosing to buy food in a more planet positive way. They said they wanted to see more ethical sourcing, lower carbon footprints, and thoughtfulness around social and environmental causes.

“Spending on sustainable products remains a conscious decision based on personal values,” says Inga Klebanskaja, senior research consultant at Euromonitor. She adds that sustainability today is a “prerequisite for innovation that drives growth”.

What does sustainability mean in retail?

There are lots of things to consider, from choosing brands with a lower carbon footprint, to those that arrive in minimal packaging or that offer a packaging return system, or even helping the growth of the local economy by supporting the Living Wage and improving the lives of your employees.

Richard Werren, BSI’s global director for food and retail, says he thinks the “penny has dropped” in the sector. “Independent retailers realise sustainability means something to consumers and is here to stay. Today’s consumers are well-informed, and our research shows that 62% globally now look for sustainability claims when buying products.”

If you’re taking the issue seriously, he continues, there’s a brilliant opportunity to engage with shoppers who are voting with their wallets towards ‘greener’ retail.

Speciality retail’s superpower is speed, Richard adds. “Independents can implement changes much faster than major retailers, and in a competitive market that’s a big advantage. Furthermore, research by Faire shows that 41% of consumers believe independent retailers provide better customer service as well as offering better quality and more interesting products (35%).”

The trick, Richard says, is to tell not only stories around products, but also about how your own business is run. If you’re cutting back on waste, championing local sourcing and using green energy, shout out about it because sustainability has “moved from being a fringe concern, to the cornerstone of a winning business strategy”.

Gen Z are becoming a key part of the independent retail picture, and will continue to be influential as their spending power increases, Richard continues.

According to BSI’s Net Zero Barometer 2024, three-quarters of consumers would pay more for an item or service from company with good environmental credentials, with a huge 93% of Gen Z more likely to be loyal to a climate-friendly brand.

Beyond this, the BSI’s research showed that consumers were willing to pay up to 9% more for products that align with their personal values on sustainability, and 74% are more likely to trust a business pushing the envelope on the environment if they can provide evidence, verification or certification to validate their claims.

What can retailers do to be more sustainable?

There are lots of opportunities for independents such as farm shops and delis to make a change and lead from the front on sustainability initiatives, says Richard. “For example, they can do this by reducing packaging waste, encouraging and incentivising customers to use scales and their own containers for loose produce, deli items and meats, or by replacing plastic bags with paper or compostable, recyclable alternatives.”

Specialist retailers can also work with shorter supply chains. “This makes good sense, because it supports local farmers and producers, and creates an opportunity for independents to really engage with their local communities.”

You could go a step further, he adds, by promoting these products with enhanced signage, discounts and sampling to put them front and centre of your offering. “Or host pop-up events to inform environmentally conscious consumers about the sustainable food choices in store and what they can personally do.”

There are financial benefits, says the Carbon Charter, to becoming more eco-friendly. According to the organisation, for example, cutting 20% of your energy cost could improve your profits by as much as 5%.

Advice from them includes:

Looking at lighting – Installing LED lights is instantly energy saving, and as they give off less heat, there’s a reduced need for cooling. The bulbs last longer too. Consider also installing occupancy sensors in areas such as corridors and storage rooms to ensure lights are only on when they’re occupied.

Heating and cooling – Balance your office, storeroom and shop floor temperatures to outside conditions and set controls to match requirements throughout the day. Consider a dead band setting of 3C between heating and air conditioning to ensure they’re not running at the same time. And heat reflective glass and awnings over large display windows can also reduce unwanted heat gain in summer.

Refrigeration – Save money by scheduling regular maintenance of in store fridges. Avoid overcrowding fridge shelves to help them run better, and consider insulating covers or sliding doors to retain a consistent temperature. Overnight, you might think about using night blinds or aerofoil technology to reduce the loss of chilled air.

What is the future of sustainable retail?

Richard thinks tomorrow’s retail world will be shaped and defined by a shift to more sustainable ways of working in order to meet rising consumer expectations.

It must become, for independents “a defining pillar of their retail strategy, with eco-friendly practices built into all aspects of their business operations”.

In the UK new regulatory and compliance frameworks supporting this shift are likely to be another driver, he adds. There’s a lot of talk around AI too, being used as an enabling tool and Richard thinks it will have a part to play in improving sustainability through accurate forecasting, improved stock management, supply chain transparency and energy efficiency.

“All of these will play a part in the future of the sector.”

Case study: ‘Being sustainable was a personal choice for me’

Toni Kelly, founder of The Little Ginger Bee, a refill and sustainable food and lifestyle shop in Suffolk, shares her journey.

What made you decide to open a sustainable shop?

It’s been a bit of a journey. Originally it started with me having a skin condition. I was seeking out chemical-free products and researching things more, but that’s 20 years ago now. Going forward and doing this as a business came to me during lockdown. It’s something I’d spoken about setting up before refill shops were really a thing, and the time felt right to take a leap.

What are the key things shoppers tend to visit you for?

Plastic is a big thing - people wanting to avoid products packaged in plastic. But I think also people are more and more aware of chemicals, whether that be on the skin, clothes or in the air. They want something more natural. I’m noticing more customers going back to the older ways, inspired by influencers like Nancy Birtwhistle, using bicarb, vinegars and more gentle things to clean.

How easy is it to go eco-friendly?

I think you do have to have to do a lot of due diligence. Personally, I have a lot of boxes that I need to tick for my own shop and that means sometimes I can find myself down a bit of a rabbit hole when it comes to sourcing because a lot of greenwashing goes on out there. I prefer to buy products made locally and in the UK where possible to reduce air miles. And I’m looking for things that are made ethically too, being vegan, cruelty free, natural and plastic free.

Which brands do you enjoy working with?

I use SESI a lot for my range of body and cleaning products. I like that it’s a completely circular system. They also supply some of my ingredients like Honest Toil olive oil. That is so popular and has gone down really really well, even with the price increase in olive oil. I think I’m selling more of it now than I did when I first got it in. Everybody loves it. It tastes amazing, it’s from a small family-run business, and it’s made from a single variety of olive, one of the top three for polyphenols.

What would you like to see more of?

I think I’d like to see much more information out there from the wholesalers. A lot of them are website based and you’re trusting them and their sources, rather than being able to see for yourself where and how things are grown. We can make more informed choices if we have those details. Some things might not be organic, but could have ethical, sustainable growers.

Do you have any advice for retailers thinking of upping their sustainability game?

I think, whether they’re sustainable or not, the same rules apply. You have to learn to be flexible and changeable. You might think you know what customers want, but they could want something completely different. Talk to people when they come into the shop, and flex your offering as and when you need to.

Also, speak to other businesses. I’m on a lot of Whatsapp groups and Facebook groups with other zero waste shops. If you get stuck there’s always someone there so you can ask questions. Also, you’ll know they’ve done their homework like you, and will only be recommending good quality products.