Ethical shoppers are driving retail strategy - report
Pay close attention to the needs of the ethical buyer. They’ll be having a "significant impact" on future retail strategies, according to audit, tax and consulting firm RSM.
Its survey of 250 retail executives revealed that the ethical buyer was the joint top area of focus for retailers in the next two years, combined with demand for more flexible and faster delivery “highlighting the impact consumer behaviour has on future retail strategy”, the report highlighted.
In addition, 55% of retailers see reducing their carbon footprint as the most important social and environmental issue that retail businesses need to address.
Meanwhile, sustainable supply chains (53%) and being a conscious employer (52%) make up the top three most prominent issues.
However, only 37% of retailers said that reducing environmental impact was a priority for them, “highlighting a slight mismatch between views and action”, the report noted.
Jacqui Baker, head of retail at RSM UK, said: “The importance of strong ethical credentials to consumer-facing brands can’t be overstated. The ethical buyer spends with brands that have a positive impact on society and are more likely to boycott brands that fall short.
“So it’s not surprising that brand reputation is the main driver for social and environmental changes as high-profile naming and shaming for poor treatment of staff and suppliers not only creates a reputational and commercial risk, but it can make it much harder to attract new staff and customers.”
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