Retailers are wasteful, and we must change

With a new generation taking charge, the retail sector needs green products and green processes to survive, writes Loblaw Cos. Ltd. executive chairman Galen Weston Jr.

Galen Weston Jr.

Globe and Mail Update

By now even the most hardened skeptic admits it: Global warming and other environmental and health challenges are going to require fundamental changes in the way we live and work as a society. It's no longer a matter of choice or opinion, but of survival.

 In a consumer-based economy like ours, that means no sector has more at stake than retail. Think of it. The retail sector is Canada's largest employer. We're the largest consumer of energy. We produce more waste than any other sector. Our physical store layouts and their geographic locations, our supply and distribution networks, and of course, the products we carry all have a huge environmental impact.

 So clearly, as a sector, we have an obvious responsibility to be leaders on the environmental front. But the unique nature of our sector also gives us an unequalled opportunity to exercise that leadership.

The fact is no sector has a more direct, more frequent, and frankly more intimate relationship with more Canadians than retail. Our whole industry is based on our ability to understand consumers -- that means anticipating their behaviour and influencing it.

 In many ways, consumers are way ahead of us. They know the stakes of the environmental crisis. And they want to do something positive about it. Our challenge is to give them the means to do it -- and to lead by example. In an era when every consumer product seems to be slapping on a coat of green, consumers are justly cynical about fads and conversions. They want to be sure that a retailer's commitment is more than marketing-deep.

What does it mean in concrete terms? First of all, of course, it means offering consumers the environmental and healthy alternative products they want. And -- here's the vital caveat -- without prohibitive pricing or sacrificing on quality.

That means green cleaning products, for example, that do the job as well as the competition. Or organic or non-trans-fat foods that are affordable and flavourful.

Retailers also need to educate and lead consumers on the environmental, health and economic benefits offered by sustainable sourcing: local growers, true fair crops, and responsible fisheries and meat and poultry farming.

And of course, we need to "walk the talk" ourselves. It starts with store design, management and retrofitting. In our company, for example, working with electric utilities in Ontario, we are able to reduce our electricity demands in more than 100 stores in the province by more than 10 megawatts during days when the provincial power grid is stretched. As the environmental and weather crunch continues, consumers will come to expect this type of behaviour -- and more -- from retailers.

We also need to reduce waste -- the millions of tons of store-generated waste that retailers send to landfill every year, and the overpackaging of consumer products that contributes to both the global warming and trash crises. Again, consumers are more than ready for these changes. I personally got a flash of just how ready they are earlier this month, when we launched a Green Shopping Bag, which contains more than 85-per-cent recycled materials such as plastic bottles. Within days, we were almost sold out -- a telling fact when you consider that consumers were opting for a 99-cent bag over the free shopping bags readily available in-store.

The goals I've outlined are all realistic and doable. In fact, the technology to accomplish them is already in place. What's needed is the will of Canada's retailers -- especially large-scale retailers -- and the realization that sound environmental practices aren't a drain on the bottom line, they're an investment in it.

 I'm actually very bullish about the sector stepping up to the challenge. For one thing, the commitment of some of the largest players -- like Loblaw Cos. Ltd. -- is firm and long term. For companies like ours, there is no going back.

 I also believe we're entering an exciting, energizing period in which a number of important factors are converging. Consumers are educated on the environment in a way they have rarely been on any issue before. Governments have come to an understanding of the urgency of global warming and environmental issues, and are beginning to commit the resources and priority needed.

The final factor is the new generation of CEOs taking the helm at Canada's retailers. We understand the challenges and opportunities of the greening of our economy -- and we know the cost of failure. Just as the previous generation of retailers redefined shopping and the in-store experience for millions of Canadians, this new generation must move the sector in a new direction. It's an issue of survival -- and not just for our sector.

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