creating culture of change for retail sustainability (passion for retail 09)
DESCRIPTION
David Ian Gray's presentation on topic of Sustainability in Retail as part of panel discussion at Retail BC's Passion for Retail Conference 05/09 Vancouver, Canada.TRANSCRIPT
Creating A Culture of Sustainability
Retail BC
Passion for RetailConference
May 5,2009 - Vancouver BC
Panelists
Amy Curry-Staschke, Director of Global Compliance, Lululemon.
David Labistour, CEO of Mountain Equipment Co-op.
Satnam Lalli, Independent Pharmacist and National Board of Pharmasave.
Carmen Spagnola, Founder of M, Sustainable Bed and Bath Retailer.
www.dig360.ca
Change
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Change
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Three levels of true green
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Three levels of true green
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Complex systems
Retail shapes
shoppers
Shoppers shape retail
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Retail strengths and weakness
Stronger: on tactics and short-term strategy, adaptation to its ‘environment’ and adopting new tactics.
Weaker: true innovation, organizational change, long-term vision and strategy.
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Types of retail competitors
Mom & Pops(Self employed)
Growth start-ups &
concepts*Chains
The majority
At risk (but continuously
emerging)
Fewer in number
Catalysts for retail
innovation
Concentration of Sales $
Greatest influence
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Technology drives retail change
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Global Sourcing has too
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“Good & Evil”
Often a paradox in the same shopper.
Shoppers want green plus:Price, Quality,
Convenience, Design
This is changing...
... frugal = chic?
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Canadian Retail Sales % ChangeDecline begins in Nov.
All RetailLess Automotive
Source: Statistics Canada
% change from same month prior yr.
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Now = tide is changing
Long period of growth slowing even earlier
“Rocks” getting exposed
There will be a period of retail chaos
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Short-term challenges
No growth
Some winners
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and opportunities
Acquisition
Real Estate
Improvement
For those with good balance sheets
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Green still on agenda
Must help bottom line
Catalyst to price curve
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Sustainable Retail
The next transformative catalyst!
Similar to Internet in 90’s
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Lessons from Internet adoption
Disruptive or Transformative?
1994 20091999
Dial-up, bbsemail
Publishing“Yellow Page”Netscape
“Retail Dead”New EconomyEcommerce
Alt. ChannelsDSLRich media
Multi-ChannelWeb 2.0Alt Platforms
Discussion:Creating A Culture of Sustainability
Retail BC
Passion for RetailConference
www.dig360.ca
Q1: Possible barriers… (from DIG360 Retail Cares Study)
Customers not paying for it.
Lack of human resources
Budget restraints
Lack of time
We are doing much already; there are diminishing returns to our efforts.
Customers not demanding it
Difficult to make a business case
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Question #1
Why discuss “change”, “strategy” & “culture”? ...
... we’ll tactically outsource or add solutions created by others as appropriate.
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Sustainability drivers
Waste Reduction – cost savings
Not green product sales Health + kids excepted Price falling will help
Labour Market key
Risk management
Brand differentiation
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Q2: Green retail drivers (Executive survey from DIG360 Retail Cares Study)
More common
It’s simply ‘the right thing to do’
Reducing costs
Acting as a general brand differentiator
Avoid lag behind our peers
Attracting and retaining employees
Meeting regulation
Less common
Generating sales from “ethical” shoppers
Responding to key product vendors’ demands
Attracting investors
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Question #2:
OK, so we should consider ‘culture’, change management ...and continuous green improvement...
But how do I build that foundation in my organization? What do I need to consider?
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Question #3:
What is retail’s gift (to a sustainable future)?...
Am I to be an outstanding adapter and adopter of other solutions? Or... help develop the future ?
Do I do this alone, or work with peers?
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Green retail activities (Executive survey from DIG360 Retail Cares Study)
More common
Reducing waste in operations +/or reducing energy use.
Offering environmentally friendly products to consumers
Mandating eco-friendly packaging
Developing or designing green products
Incorporating green procurement of supplies and services.
Less common
Supporting specific environmental groups
Conducting green building and design (such as LEED)
Many mall-based / leased premises
Using green power
After sales environmental product stewardship
Public accountability reporting
Participation in carbon offset programmes
Thanks!
For more information, contact:
David Ian GrayDIG360 Consulting Ltd.
Follow on Twitter: www.twitter.com/davidiangray