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The Role of Retail in a Sustainable Future FoodProWest - 2010 June 4, 2010 - Burnaby BC May 5, 2009. Collage (From the French coller , to stick) is regarded as a work made from an assemblage of different forms, thus creating a new whole. In On Around. Health & Wellness. Driven by Boomers
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The Role of Retail in a Sustainable FutureFoodProWest - 2010June 4, 2010 - Burnaby BCMay 5, 2009
Collage (From the French coller, to stick) is regarded as a work made from an assemblage of different forms, thus creating a new whole.
Health & Wellness • Driven by Boomers • Physical Health & ‘Looking Good’ • Younger Canadians concerned with healthy eating and exercise • Childhood obesity a looming issue 19 www.dig360.ca
Retail is TheatreRetail is PeopleRetail is Logistics www.dig360.ca
Complex systems Shoppers shape retail Retail shapes shoppers www.dig360.ca
25% of retail = food & bevCanada (1997 - 2007)Source: Statistics Canada (Trade Group) 25% 7% 34%
Two retail worlds 2/3 $ Sales Chain Stores (3+ Stores) • Large Retail has clout & influence • Small Retail has entrepreneurship, flexibility, adaptability • All Retail is part of the Larger System
Growth start-ups & concepts* Types of retail competitors Mom & Pops (Self employed) Chains The majority At risk (but continuously emerging) Fewer in number Catalysts for retail innovation Concentration of Sales $ Greatest influence www.dig360.ca
Retail strengths and weakness Strong: on tactics and short-term strategy, adaptation to its ‘environment’ and adopting new tactics. Weak: true innovation, organizational change, long-term vision and strategy.
Canadian Retail Sales % Change1999-2009 % change in dollar sales from prior year Source: Statistics Canada
Just 11 of top global 250 are Canadian Only 7 of top global 20 are in Canada today Foreign retailers often choose Canada as warm-up for US Outperforming US past few years Canada is under-competed
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. www.dig360.ca
Technology Inventory management, supply chain Sales growth, expansion Doing more with less Staffing New channels and competitors … and Sustainability What keeps retailers up at night? www.dig360.ca
Community • Not just your neighbours • Social networks & media • Building community with your audiences… but also enabling them with each other 21 www.dig360.ca
Retail relatively benign 34 www.dig360.ca
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs". www.dig360.ca
Shoppers want green plus plus • …Price, Quality, Convenience, Design • Expect brands to “be good” • Often a paradox in the same shopper. 20 www.dig360.ca
Green high on public agenda • Must help bottom line • Catalyst is price curve www.dig360.ca
Sustainability drivers • Waste Reduction – cost savings • Labour Market key • Not green product sales • Health + kids excepted • Price falling will help • Risk management, Regs • Brand differentiation • Avoid falling behind • “Right thing to do” 34 www.dig360.ca
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 www.dig360.ca
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 Green retail activities(Executive survey from DIG360 Retail Cares Study 06)
Org charts matter • Where in the organization does sustainability lie? • Are the messages and measures in sync? www.dig360.ca
Consortium www.dig360.ca
2010 • Global leaders continue to lead • Grocery at front of categories • Canada ?? • Waste reduction = bottom line • Moving to product and package • Pushing back on supply chain www.dig360.ca
Those stuck in the middle at risk www.dig360.ca
Three levels of true green www.dig360.ca
Suppliers will produce green atgreat pricegreat qualitygreat designgreat convenienceThis will happen
Sustainable Retail • The next transformative catalyst! • Similar to Internet in 90’s www.dig360.ca
Lessons from Internet adoption Disruptive or Transformative? Publishing “Yellow Page” Netscape Dial-up, bbs email “Retail Dead” New Economy Ecommerce Alt. Channels DSL Rich media Multi-Channel Web 2.0 Alt Platforms 1994 1999 2009 www.dig360.ca