Using optimized space and assortments to reduce the environmental impact of retailing
How retailers can reduce the environmental impact of retail operations
In the rush to match rising customer expectations on environmental issues, retailers’ environmental impact has been under increased scrutiny both from pressure groups and new legislation designed to reduce environmental damage from pollution, noise and development.
Many retailers have been quick to announce a host of green initiatives in a bid to enhance their corporate social responsibility programs. Most of these initiatives have been of a type that customers can readily understand, such as utilizing trucks that are more fuel efficient through improved aerodynamics and journey planning, transferring road freight to the railway and encouraging customers to adopt reusable bags. However, while these initiatives make for good headlines, the actual environmental benefit from many of these programs has been fairly limited. There is another environmental angle that has been largely overlooked– store space and assortments. Delivering the right product to the right stores in the appropriate quantities delivers significant and positive environmental benefits as well as significantly enhanced sales and customer satisfaction.