Competitive Advantage Driving Green Retail Efforts, Survey Says
Published: Thursday, August 28, 2008
Green retail initiatives are a win-win for retailers, helping to reduce operating costs and earn customer loyalty, according to a new survey of 100 industry executives.
The survey from Aberdeen, a market research firm, identifies the top five drivers of sustainability programs within the retail industry. First and foremost, say retailers, is the desire for competitive advantage (57%), followed by the need to control rising energy costs (38%), the need to improve brand value and equity (34%), and the need for innovation (31%), and pressure to comply with companywide mandates for environmental performance (30%).
Best-in-class retailers are enjoying a range of benefits, according to the report, posting revenue growth while also seeing bottom-line cost savings and increased customer loyalty. In fact, best-in-class retailers are currently achieving:
- a 20% decrease in energy costs
- an 8% decrease in their logistics and transport costs
- a decrease of 5% in merchandise costs
- significant improvements in customer loyalty, measured by improved rates of customer acquisition (+17%) and customer retention
For the complete article on Sustainable Life Media click here.