In Touch With Retailing

Four “Rs” of Going Green

By Ed Soladay, Chief Operating Officer, Fujitsu Transaction Solutions Inc.

Green is the new black, as fashion experts say.

Whether retailers believe the current environmental movement is just a fad or is here to stay, the reality is that American consumers are increasingly adopting an eco-friendly mindset and are expecting the companies they do business with to do the same.

Recent reports like the “BBMG Conscious Consumer Report” from marketing firm BBMG show that consumers want companies to walk the talk when it comes to environmental promises. The study also shows that consumers are conscious of which companies have done the most for the environment. The leader is Whole Foods, a retailer picked as most responsible by 22 percent of those surveyed.

Contrast that with a recent Forrester Research study of 124 IT operations and procurement professionals that said while 85 percent of respondents think environmental factors are important in planning IT operations, only 25 percent have written green criteria into their company's purchasing processes.

So, clearly, environmental goodwill among most organizations is high, but actual and perceived barriers often stand in the way.

As the green trend continues to blossom, there are four general guidelines that retailers can follow to create a more eco-friendly enterprise – the Four “R’s” of going green.

RECYCLE.

Long preached as a basic means to improve the environment, recycling is the reuse of materials and objects in their original or changed forms, rather than discarding them as waste.

If a retailer provides plastic or paper bags for merchandise, one option is a store recycling program where customers can return used bags for a special bonus on your loyalty system.

On the flipside, some grocers – and even entire cities – are eliminating plastic bags altogether in place of reusable canvas bags or boxes that consumers can purchase for a nominal fee. Each time shoppers use the bag or box, they can be rewarded with either a discount or loyalty bonus.

Contrary to some beliefs, technology also can impact recycling. For example, emerging electronic shelf label (ESL) systems completely replace paper labels with tiny electronic displays that can be moved and reused at will. In addition, the centralized, automated system reduces the copious labor costs required to manually update traditional paper-based labels.

REDUCE.

ESLs also can have an impact on another green guideline, waste reduction and energy conservation. By eliminating traditional labels, ESLs reduce the amount of wasted paper and ink across a retail chain.

Also, modern point-of-sale (POS) hardware is specifically designed with processors and other components that work more efficiently than their predecessors and reduce the amount of energy used. In general, in-store technology and equipment that meets government ENERGY STAR standards can dramatically reduce energy consumption.

Additionally, recycling and waste reduction often go hand-in-hand: The more a company recycles, the less waste it produces.

RENEW.

Consider energy sources that renew themselves naturally such as hydropower, solar, wind and geothermal processes.

For those in areas with deregulated energy utilities, options are often available with eco-friendly providers. Taking it a step further, some retailers are testing on-site solar energy methods to provide all power – or a good portion of it – for an entire store. Others companies even harvest rainwater at their stores and use it via a drip irrigation system to water surrounding landscape.

REACH OUT.

Let your community and customers know that your company is focused on environmental improvement. Store signage, advertising and support of local green programs can build awareness for a retailer’s environmental philosophy and initiatives while educating customers about their own environmental responsibilities.

A talking frog once said, “It’s not easy being green.” But by following a few eco-friendly guidelines and deploying cost-effective green initiatives and technology, both retailers and the earth can emerge triumphant.