By SkySite Property staff
According to a new Retail Systems Research report, 62 percent of retail survey respondents said that consumers are not yet spending on "green" products, despite much higher awareness among consumers about green issues.
Despite concerns that consumers aren't putting their money on the table to support greener practices, retailers are investing in green initiatives: 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 ("retail winners") 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 retail winners to believe that they will reap ROI on their green initiatives in 2 to 3 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. We thought that retailers would be in it only for the potential cost savings," said Steve Rowen, Partner at RSR Research and author of the report. "It turns out that better performing retailers see this as both a cost initiative and a brand-building opportunity."
Rowen said that higher-performing retailers believed consumers' desire for green options is not just a fad. These retailers aer investing dollars now in green brands, even if they don't see the payoff yet.
"From the products on the shelves to the labeling of environmentally friendly hardware and equipment in stores, retailers are positioning themselves now to take advantage of a trend they believe will only grow in importance," added Paula Rosenblum, managing partner at RSR and editor of the report.
The report is available for download from Retail Systems Research. Click here to download it now.
According to a new Retail Systems Research report, 62 percent of retail survey respondents said that consumers are not yet spending on "green" products, despite much higher awareness among consumers about green issues.
Despite concerns that consumers aren't putting their money on the table to support greener practices, retailers are investing in green initiatives: 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 ("retail winners") 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 retail winners to believe that they will reap ROI on their green initiatives in 2 to 3 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. We thought that retailers would be in it only for the potential cost savings," said Steve Rowen, Partner at RSR Research and author of the report. "It turns out that better performing retailers see this as both a cost initiative and a brand-building opportunity."
Rowen said that higher-performing retailers believed consumers' desire for green options is not just a fad. These retailers aer investing dollars now in green brands, even if they don't see the payoff yet.
"From the products on the shelves to the labeling of environmentally friendly hardware and equipment in stores, retailers are positioning themselves now to take advantage of a trend they believe will only grow in importance," added Paula Rosenblum, managing partner at RSR and editor of the report.
The report is available for download from Retail Systems Research. Click here to download it now.
