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What is Green Retail?

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In this article, we’ll explain what green retail is, the benefits and challenges, and how your company could make the transition.
ESG / CSR
2025-03-24T00:00:00.000Z
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Shopping is one of the most favorable pastimes, especially in our modernised world of excess consumerism and the ease of your new favorite pair of jeans only being two taps away from being delivered to your doorstep – which can at times, make it challenging for more sustainable initiatives like green retail to get their feet off the ground.

Green retail can help us to reduce the environmental impact created by our typical shopping habits, but it would require effort from everyone involved in a retail business to prove successful.

In this article, we’ll explain what green retail is, the benefits and challenges, and how your company could make the transition.

What exactly is green retail?

Green retail refers to the effort of seeking to reduce environmental waste from your business via improved management. 
Also referred to at times as sustainable retailing or eco-reatailing, as a whole – green retail can prove beneficial for the environment, boost business efficiency, and also attract new customers and ensure long-term loyalty to your company.  

Retail is a customer business. You’re trying to take care of the customer, solve something for the customer. And there’s no way to learn that in the classroom or in the corner office or away from the customer. You’ve got to be in front of the customer. — (Erik Nordstrom).
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how does the retail sector go green?

Key Aspects of Green Retail

  • Sustainable Products – Green retail will focus on offering more eco-friendly, biodegradable, recycled, ethically sourced products – as this is one of the main ways to reduce the carbon footprint of a product at its core.
  • Energy Efficiency – Opting for LED lighting, solar panels, and other energy-efficient equipment can help retailers to reduce their individual carbon footprint when manufacturing their products.
  • Reduce Waste – Making an effort to employ the ideas of zero waste, recycling programs, and make use of sustainable packaging can help retailers to go green.
  • Eco-Friendly Store Design  – Choosing to give your retail store a sustainable makeover can help to reduce the environmental impact created by your business. 
  • Low-Carbon Transportation – As one of the many overlooked, but effective, efforts to reduce carbon emissions – your business can opt for more sustainable supply chains, locally sourced goods, and green transportation to reduce the impact of shipping and delivery. 
  • Consumer Awareness – Green retail isn’t just about your own efforts as a business to reduce the environmental impact of your operations, but to help inspire customers on the ways they could implement sustainable initiatives into their own everyday lives. 

Ultimately, green retail can help businesses to incorporate environmentally friendly and sustainable strategies into their business operations – which can help to both reduce their environmental impact and promote ethical consumerism.

person with shopping bags

Why is green retail important?

Green retail is important as it allows retailers to adjust their current business practices to allow for their company to remain successful and competitive in the long-haul.

Especially as climate change continues to threaten many aspects of our daily lives, green retail is an excellent opportunity for businesses to adjust to the sustainable initiatives of today and avoid scrambling to adjust in the future – where there will be no choice but for all retailers to become green retailers. 

Here are a few more reasons why green retail is important:

  • Preserve Finite Resources – Green retail prides itself on ethical sourcing, which in turn – can help to avoid the use of more sparse or finite resources.
  • Transition to Clean Energy Consumption – Green retailers will often make an effort to utilise renewable energy sources such as solar panels or wind turbines in their business, which can help to avoid putting too much stress on our current energy grids. 
  • Encourage Innovation – Transitioning to green retail will require businesses to get creative with new solutions to keep their business moving and sustainable at the same time. This reveals how green retail can help retail companies to develop innovative thinking, which could prove indispensable as they work towards becoming a green retail company. 
  • Future of Consumerism – Our current rate of consumption will not be sustainable in the near future as we continue to hurdle towards the negative effects of climate change, meaning that green retail will no longer be an optional – but a requirement in the coming years. Therefore, adjusting to the values underlined by green retailers today can help companies prepare for a better future in business tomorrow. 

Overall, green retail allows retailers to decipher their current strengths and weaknesses – which ultimately can help retail companies determined to go green improve upon their current setbacks.

colorful coats

What are the benefits of green retail?

There are numerous benefits to green retail, such as helping to boost customer satisfaction, adhere to the newfound demands of sustainability in business, and allowing retailers to reduce their environmental impact.

Remember, in today’s world – businesses working towards being more eco-friendly are not only doing it out of choice, but out of necessity. This is because as environmental regulations and climate legislation continue to tighten, it is compulsory for businesses in retail to shift towards the values depicted by green retail if they want to remain successful and lucrative in the long-term. 

Here’s a breakdown of the benefits of green retail for both customers and businesses:

Benefits of green retail for customers

  • Non-Toxic & Better Quality Products – Green retailers will work tirelessly to provide organic products free of chemicals. As a whole, this also means that the products will be made with higher-quality materials.
  • Save Money – On this note, more durable and refillable products can allow for the product to last longer – which allows for long-term cost savings for customers. 
  • Ethical Consumerism – Customers looking to become more sustainable in their personal lives will feel more confident financially supporting a green retailer – as these brands will align with their new efforts to seek fair trade and cruelty-free products, 
  • Reduce Personal Carbon Footprint – Shoppers who seek green retailers will inherently reduce their own carbon footprint – as they will no longer be subject to as much plastic waste and be supporting products which promote the importance of eco-friendly practices.

Benefits of green retail for businesses 

  • Lower Carbon Footprint – Businesses who work to employ the ideals of green retail are bound to find success in reducing their environmental footprint long-term – which can help to attract new customers and investors to the business.
  • Adhere to Sustainable Initiatives – Retailers that shift to the values depicted by green retail will help themselves comply with existing sustainable initiatives, legislation, and more – which can help them to avoid legal fines and meet the growing demand for sustainable shopping.
  • Boost Brand Reputation – The principles depicted by green retail can help businesses to improve their brand reputation, which in turn – could boost customer loyalty and help the retailer to stay in business long-term.
  • Improved Resource Efficiency – Green retail often encourages businesses to utilise more eco-friendly production methods and energy efficient equipment, which can help to lower operational costs.

In the end, green retail is bound to benefit almost everyone involved – as it can help both individuals and businesses to reduce their environmental impact and develop long-term, remunerative sustainable habits.

two girls shopping together

What are the challenges of switching to green retail?

Although green retail is rewarding in the long-term, some retailers may find it overwhelming to make the transition – as it could require higher initial investments, greater flexibility to adjust business operations accordingly, and potential greenwashing accusations. 

Here’s a breakdown of some of the challenges associated with transitioning to green retail:

  • Higher Initial Costs & Pricing – The additional funds required to secure more sustainable materials, energy efficient equipment, and sustainable packaging are often too expensive and daunting for retailers to fully commit to the transition. In addition to this, eco-friendly products are often more expensive
  • New Suppliers – Think of your favorite take out restaurant where the waiter always knows your “usual” order – it would be hard to give that up and start over with a new restaurant, right? The same goes for your company's suppliers, as transitioning to green retail – as it can be challenging to find suppliers dedicated to sustainability. As a result, your business may experience supply chain disruptions while transitioning – which could possibly deter current customers. 
  • Changes in Business Operations – The switch to new suppliers, sustainable packaging, and more will require greater flexibility from your employers and customers alike while the transition ensues – which could prove challenging, as everyone involved would need to be patient as your company switches to green retail.
  • Potential Greenwashing – These days, without the proper certification, companies are bound to greenwashing – meaning that simply making an effort to switch to green retail may not be enough, and could even cause more harm than good.
  • Time & Limitations – In order to be considered as a green retailer without being accused of greenwashing, retailers may pursue certifications such as LEED or Fair Trade to certify their products as sustainable. However, pursuing these certifications can be complicated and time consuming – and some businesses may not have the resources to accomplish this. 
  • Education Customers – Becoming a green retail business is one thing, but getting your customers on board with the transition is another – meaning that more time and money may need to be spent on campaigns, emails, and advertisements to raise awareness.

The table below will break down the potential challenges of green retail, but the benefits to be gained as a result of pursuing the transition:

Challenges of Green Retail Benefits of Transitioning to Green Retail
Higher upfront costs for sustainable materials and eco-friendly technologies. Long-term cost savings through energy efficiency, waste reduction, and lower operational expenses.
Limited availability of sustainable suppliers and ethical sourcing challenges. Stronger brand reputation and trust among eco-conscious consumers, leading to customer loyalty.
Potentially higher product prices, making it harder to attract budget-conscious shoppers. Access to a growing market of environmentally aware consumers willing to pay more for sustainability.
Regulatory complexities and the need to obtain sustainability certifications. Compliance with environmental standards can lead to government incentives and competitive advantages.
Need to educate consumers on the value and impact of sustainable choices. Greater customer engagement through transparency and sustainability-driven marketing strategies.
Adjusting operations, supply chains, and logistics to be more eco-friendly. More efficient and resilient supply chains with reduced waste and carbon footprints.
Risk of skepticism or accusations of greenwashing from consumers. Authentic sustainability efforts can differentiate the brand and create a positive public image.

Examples of green retailers 

  • Patagonia – As Patagonia uses renewable and recyclable materials to manufacture their clothing, in addition to allowing customers to bring in their clothes to be mended – Patagonia is one of the best examples of green retail. 
  • IKEA – Known for their affordable products made from sustainable materials, IKEA has implemented the use of solar panels to work towards the ideals of green retail and to become a climate positive business by 2030.
  • The Body Shop – By 2020, 29% of any plastic used by The Body Shop was derived from recycled materials – and they also offer customers the opportunity to refill their favorite products with reusable containers to help avoid additional plastic waste. 

These companies demonstrate that even if it can be prove challenging to transition to become a green retail business, that it isn’t impossible – and that small efforts to adhere to the ideals of green retail can make a difference.

busy shopping mall

How can your business shift to green retail?

Switching your business to fall under the umbrella of green retail may seem daunting at first, but with small steps – your company can effectively make the transition and reap the benefits. 

  • Start Small – Companies such as Starbucks have made small efforts towards green retail, such as by offering their reusable cup program – where customers can get a small discount for bringing their own cup. This shows how transitioning to becoming a green retailer doesn’t have to happen all at once, but rather in slow – but effective steps. 
  • Conduct a LCA Assessment – It can be challenging to know how to reduce the environmental footprint of your product or service if you don’t know it’s current impact, but that’s what an LCA assessment is for – and it’s something we can help you with at Greenly to assist you in improving upon your current sustainability initiatives.
  • Use Renewable Energy & Energy Efficient Equipment – This is one of the most passive, but effective ways to get started with green retail – as opting to switch out your current energy sources for solar panels or wind turbines and using energy efficient equipment can help to reduce electricity usage and your overall environmental impact.
  • Set Achievable Goals –  Working towards becoming a green retail business can be daunting, and therefore – it’s more productive to set small, but achievable goals to help your company make the transition effectively.  
  • Employee Training – We’ve got a whole guide on the different types of employee training and how it can benefit your business, and it can prove especially useful when it comes to transitioning to the ideals of green retail – as it can help your employees to remain productive and innovative during the process. 

Overall, green retain will continue to become the new norm in retail as businesses continue to adapt to the ongoing effects of climate change – and while it can be challenging at times to accommodate to ideals such as green retail, third-party companies like Greenly are here to help.

green retail infographicgreen retail infographic

What about Greenly?

If reading this article about green retail has inspired you to consider your company’s own carbon footprint, Greenly can help.

At Greenly we can help you to assess your company’s carbon footprint, and then give you the tools you need to cut down on emissions. We offer a free demo for you to better understand our platform and all that it has to offer – including assistance on how to reduce emissions, optimise energy efficiency, and more to help you get started on your climate journey.

Learn more about Greenly’s carbon management platform here.

ghg assessment with greenly
Sources

UK POS https://www.ukpos.com/knowledge-hub/what-is-green-retailing 

SOLUM https://www.solumesl.com/en/insights/sustainability-in-retail 

Lark https://www.larksuite.com/en_us/topics/retail-glossary/green-retailing 

Patagonia https://www.patagonia.com/returns.html 

Environment America https://environmentamerica.org/center/articles/ikea-is-going-solar/ 

The Round-Up https://theroundup.org/why-are-sustainable-products-more-expensive/ 

Starbucks https://about.starbucks.com/stories/2024/starbucks-to-lead-first-ever-city-wide-reusable-cup-project-in-california-with-nextgen-consortium/

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