By SkySite Property Staff
According to a new Retail Systems Research (RSR) report, 62 percent of retail survey respondents said that consumers are not yet spending on "green" products, despite much higher awareness among consumers about environmental issues issues.
Despite concerns that consumers aren't putting their money on the table to support greener practices, retailers are investing in green initiatives. In fact, 44 percent said that green practices are a strategic initiative in their company. The survey found that motivations behind green initiatives are strongly related to retail performance: while 67 percent of better performing retailers cited ethical obligations behind their green initiatives, 76 percent of lagging retailers cited only cost concerns.
Retailers anticipate that actions taken now will reap future benefits in the form of increased sales. The difference in perspective leads high-performing retailers to believe that they will reap ROI on their green initiatives in two to three years, while laggards are unable to put a timeline to expected benefits.
While supply chain investments and fuel-related expenditures pose big opportunities, the benchmark report also reveals that packaging and material costs, often overshadowed by concerns about fuel prices, are highly valued opportunities for retailers, along with reducing costs in stores.
"We were pretty cynical when we launched this survey,” said Steve Rowen, partner at RSR Research and author of the report. “We thought that retailers would be in it only for the potential cost savings. It turns out that better performing retailers see this as both a cost initiative and a brand-building opportunity. They believe consumers' desire for green options is not just a fad and are investing now to transform themselves into green brands—even though they don't yet see consumers directing a lot of spending toward green brands."
To download a complete copy of this report, go to RSR's website.
According to a new Retail Systems Research (RSR) report, 62 percent of retail survey respondents said that consumers are not yet spending on "green" products, despite much higher awareness among consumers about environmental issues issues.
Despite concerns that consumers aren't putting their money on the table to support greener practices, retailers are investing in green initiatives. In fact, 44 percent said that green practices are a strategic initiative in their company. The survey found that motivations behind green initiatives are strongly related to retail performance: while 67 percent of better performing retailers cited ethical obligations behind their green initiatives, 76 percent of lagging retailers cited only cost concerns.
Retailers anticipate that actions taken now will reap future benefits in the form of increased sales. The difference in perspective leads high-performing retailers to believe that they will reap ROI on their green initiatives in two to three years, while laggards are unable to put a timeline to expected benefits.
While supply chain investments and fuel-related expenditures pose big opportunities, the benchmark report also reveals that packaging and material costs, often overshadowed by concerns about fuel prices, are highly valued opportunities for retailers, along with reducing costs in stores.
"We were pretty cynical when we launched this survey,” said Steve Rowen, partner at RSR Research and author of the report. “We thought that retailers would be in it only for the potential cost savings. It turns out that better performing retailers see this as both a cost initiative and a brand-building opportunity. They believe consumers' desire for green options is not just a fad and are investing now to transform themselves into green brands—even though they don't yet see consumers directing a lot of spending toward green brands."
To download a complete copy of this report, go to RSR's website.
