Tag Archives: FMCG

Covid-19 is temporary, but attention to the environment must be permanent

The Drum Covoid is Temporary

We’re living in a society where we’re constantly encouraged to do ‘better for the planet’. And I don’t disagree. But we’re at a point of inflection when a lot of people don’t know what’s best for the planet. From fake news to real news – it’s information overload everywhere you turn.

Recycling your plastic should be simple, but that’s another article depending on where you live and which type of plastic it is. Buy more sustainable products. Shampoo in a block is great if you have the money to buy more expensive products.

And there’s the biggest conundrum for most people when we’re thinking about the environment and greenhouse gas emissions. If I order online for delivery am I burning more carbon than necessary? Or is it more environmentally friendly to go to the shops, buy a less environmentally friendly product but save the delivery van a journey? How we expect people to know the answer, when many of us in retail don’t know it, is beyond me! It’s all rather complicated.

The impact of FMCG

I read an interesting study from the American Chemical Society that looked into the estimated emissions created by UK sales of FMCG goods, typically low-priced toiletries, packaged foods and cleaning supplies. Although shoppers have traditionally bought these items at brick and mortar shops, online sales are increasing.

The study compared the carbon footprints of three different shopping practices: old fashioned ‘bricks and mortar’ shopping and the two main forms of e-commerce, bricks and clicks and pure play (which both have different supply chain configurations). Included in the three models were emissions from transport, warehouse storage, delivery and packaging.

The results showed that the total emmissions per item purchased from bricks and mortar retailers were higher than bricks and clicks vendors in 63% of cases, but lower than pure play in 81% of cases. It appears that more items are usually purchased from bricks and clicks retailers is used and this leads to a smaller carbon footprint per item than for the same shopping trip via a brick and mortar retailer. Another factor is, of course, that one van driver bringing multiple deliveries into one area will create fewer emissions than all those people driving to the shops.

The study made some clear but obvious recommendations for consumers for cutting emissions across all three shopping categories: walking, cycling and trip chaining for brick and mortar; and purchasing from a single retailer and bundling for bricks and clicks and for pure play online retailers. Importantly for pure play businesses – whose share of the FMCG category is on the increase – switching to electric cargo bikes could cut emissions by 26%.

I’ve tried to simplify what is actually a complex study, but it does highlight the dilemma and responsibility we have as consumers and retailers to the planet. In a recent online shopping survey we conducted among 2,000 consumers, 73% said they were concerned about the environmental impact of excessive packaging, 75% single use plastics and 42% multiple deliveries to one address. There is a clear will from consumers to want to do better for the planet but it’s far too complex for them to work out how. So, retailers, trade bodies and governments need to do more to educate consumers so they can make the right choices not just any choice.

Our current Covid-19 situation is only temporary, so my mantra as we come out of the other side of it is just to take a little more time to think before you shop.

To read the full article please visit The Drum.

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Disruption will lead to innovation in our high streets

The Drum Blog

Culture Secretary Jeremy Wright announced in May 2019 that a new £62 million fund will breathe new life into historic high streets across the country. Really? What’s £62m going to do? Unless there’s a momentous shift by Government regarding the business rate issue no £62m fund is going to fix anything or impact the dire straits we find our high streets in.

But here’s the conundrum. Across the country, people still enjoy going shopping. Shops are not going to disappear and 89 percent of UK sales are still generated through physical retail.

Consumers want high streets and businesses want to be there. We can’t give up on our high streets, but we need to fundamentally disrupt the existing model with ideas that address business rate costs head on.

Reigniting imagination on the high street

We need traditional brick and mortar retailers to be imaginative and visionary to make retail work for them and their customers. We haven’t seen enough of this. There’s been some successes where traditional retail chains have introduced successful in-store experiences, from speaker spaces to free cookery classes, to encourage consumers to dwell and soak up the atmosphere.

We’ve also seen successful buy outs where we see anchor brands amalgamate multiple brands under one roof such as Sainsbury’s and Argos (Store within a Store concept – SiS). This has enabled Sainsbury’s to continue trading within the non-food category and remain current without distracting from its core grocery business.

Brand collaborations appear to work well, and this is where I think independent retailers need to deploy more disruptive strategies. Surely independents sharing space makes sense from a financial and marketing perspective and works for all collaborations, whether it’s an anchor brand and SiS or two brands in equal partnership.

Let’s take my local high street, where there is a bookshop with a coffee shop, and this unsurprisingly works well. So why don’t we see such partnerships more often with, say, independent clothes and shoe shops hooking up, cook shops and delis collaborating and complimenting one another and butcher’s, bakeries, greengrocers and florists joining up.

With so many consumers now on a personal quest to do what’s good for the planet, collaborations can really work to bring purpose to the fore and give consumers more choice.

The rise of the ethical high street

For people who are ethically minded, they may prefer to visit collaborations that have similarly aligned values for example, butchers, delis and bakeries that are fully ethically sourced or organic or shoe and clothes shops that won’t use unethical material. Delivering a positive, convenient and alternative shopping experience for people for whom these things are a driving factor in their purchasing decisions will provide an incredible customer service and experience that’s missing right now.

I’ve been in the industry over twenty years so I’m not naive enough to think this is easy, but retail is the most dynamic of industries and it needs to do something before it loses its confidence and high streets forever. I believe it requires a major re-think of the whole supply chain from landlords to legal and introducing new innovations like retail matching services. A service that pairs up independent retailers who are looking for high street shop spaces in particular areas.

There are all sorts of challenges – what happens if one brand is doing well, and the other isn’t, if one wants to sell and one doesn’t? But we’re at an impasse where something drastic needs to happen for us to re-imagine the high street. And drastic means disruption and innovation not more of the same.

To read the full article please visit The Drum.

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