Retail Dude

Every company or retailer worry about their bottom line, because this is the thing which they want to see increasing on day to day basis and for that they strive day and night. But now their problem become triple and they have to worry triple times as now their is not bottom line their is triple bottom line to take care of.

The Triple Bottom Line (TBL) is the phrase was coined by John Elkington in 1994. It was later expanded and articulated in his 1997 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business. The concept can be old but because of the much hype of green, many retailers are going to materialised this concept now. The green is about sustanability which in turn is an explicit component of most CSR agendas and is being used by many to rethink and retool business processes and their responsibility for ’stakeholders’ rather than shareholders. In this case, ’stakeholders’ refers to anyone who is influenced, either directly or indirectly, by the actions of the firm. According to the stakeholder theory, the business entity should be used as a vehicle for coordinating stakeholder interests, instead of maximising shareholder(owner) profit.

TBL determines the impact of three P’s : profit, people and planet on the business and this is becoming the standard framework for CSR. “Profit, People and Planet” are used to succinctly describe the triple bottom lines and the goal of sustainability. Thus a comprehesive CSR agenda should cover economic, social and environmental factors.

In my marketing classes I saw these “P”s increasing from 4 (Product, Price, Place, Promotion) to 7 (Product, Price, Place, Promotion, Packaging, Positioning, People) but now what I am seeing is a new P is adding to it which is “Planet” making them 8Ps of marketing mix, but ultimately all these Ps lead to one P only that is “Profit”, which really matters in the end.

-Prateek Katiyar

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“Lighting the way to greener retail” is a report by Naulight which I went through recently. The report concludes the benefits of replacing environment unfriendly fluorescent tube with digital lighting in refrigerated display. By doing so a mid size retailer can save up to 50% in their lighting expenses apart from the benefits to the environment.

The report says that fluorescent tubes used in refrigerated display consume excess energy as they produce heat in a chilled environment. Replacing them by digital lighting would result in reduce energy consumption as well as improve merchandising appeal.

Naulight also performed a small test with one of its retail customer whereby it replaced the fluorescent tubes in one side of the aisle with digital lighting and kept other side same. Result was 19% higher sales in the side where lights were replaced.

So, replacing fluorescent tube with digital lighting is a good idea as it will result in reduced energy consumption i.e. reduced cist, increased sales and improved environment.

Full report can be viewed at:

http://www.greenbang.com/wp-content/uploads/2008/09/lighting-the-way-to-greener-retail.pdf

 - Rajeev Damani

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On the internet i came across a list of top 10 retailers not top because of their sales figure neither because of their revenues and bottom line etc. They are top in applying green thoughts to their organization and lead with the green banner in their hands. This also astonished me as i came to know that this green bug bite some of them way back in 1998

An electricity supplier focused on renewable sources — Juice Energy Inc.– picked the following companies as frontrunners in green business :-

Patagonia
In 1998, Patagonia became the first California-based company to buy electricity from 100 percent renewable energy sources and achieved LEED gold certification for its Nevada distribution center. Additionally, Patagonia is a leader in recycling, with its Common Threads Garment Recycling Program, which recycles used fleece for use in new products.

Kohl’s
Kohl’s is the second largest retail purchaser of green power and the largest among department stores, using 201,396,000 kWh annually. Kohl’s is also working to complete the largest rooftop solar project in U.S. history next year, with installations at 63 of their 80 California locations.

Whole Foods
Whole Foods, a leading natural and organic supermarket, purchases green power equal to 100% of their electricity usage, over 509,100,000 kWh annually. Their green power usage earned them the distinction of EPA Green Power Partnership Power Partner of the Year 2006 and ranks third among all green power purchasers. Whole Foods also gained LEED Silver certification for its Sarasota, FL store, the first supermarket to earn the designation.

prAna
In 2005, the outdoor and lifestyle apparel wholesaler prAna launched their Natural Power Initiative to purchase green power equal to the electricity usage of all 250 prAna retailers, the company’s corporate headquarters, and the homes of all their full-time employees, equaling 29,678,000 kWh annually. Now prAna plans to purchase wind power for their entire North American dealer base of approximately 1,000 retail partners in addition to its contracted U.S. - based sewing facilities.

REI
REI, or Recreational Equipment Inc., purchases green power equal to 100% of their annual electricity consumption, totaling 63,080,000 kWh, which ranks 9th among retail purchasers. REI has also committed to reducing CO2 emissions by 1/3 from the 2006 baseline by the end of 2009.

UPS
UPS operates the largest alternative fuel and low-emission fleet in the industry, with 19,647 such vehicles worldwide. UPS is also reducing its emissions by purchasing 2,949,545 kWh of green power for its California facilities and streamlining delivery routes resulting in the elimination of more than 28.5 million miles of driving to date.

Timberland
Timberland recently introduced Green Index tags on a number of its products, which rate products based on environmental factors such as greenhouse gas emissions, the use of solvents, and organic content. Timberland also plans to become “carbon neutral” by 2010 and recently changed all packaging use for its footwear to 100% post-consumer recycled boxes and soy inks.

Nike
Nike has set a goal to be “carbon neutral” by 2011 and currently purchases 79,820,000 kWh of green power for its World Headquarters, representing 72% of annual consumption. The company is also designing its footwear to meet targets for waste reduction, elimination of volatile organic compounds and increased use of environmentally preferred materials by 2011.

Wal-Mart
Wal-Mart has made a commitment to reduce overall GHG emissions by 20% over the next 8 years and set a long-term corporate goal to purchase 100% of their energy from renewable sources. Wal-Mart has also set a goal to increase fuel efficiency of its fleet by 25% over the next 3 years and is currently the largest single purchaser of 100% organic cotton products.

Target
The discount retailer, Target, became a certified organic produce retailer late last year and now offers more than 500 choices of organic certified food. Target also reduces waste through food-donation programs, giving away nearly 7 million pounds of food last year. They also have four buildings in California using on-site solar electricity, with systems under development at 14 additional stores.

- Prateek Katiyar

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I am not going to give you  tips on becoming HULK But as I talked lot about the green initiation and sustainability plans of the big retailers and the future strategies of the small retailers to become eco friendly in the near future, but what about you as a person are doing to help our mother earth? No no no don’t worry I am not going to give you a check list of items saying switch off the lights, use solar power, say no to plastics etc. I am gonna tell u a simple step in which without doing u will become eco friendly. As everyone of as use computers as a part of office work or as a entertainment medium in home or to find location of friends home on google maps, we all use PCs and PC use power to run. So here is a freeware which can tune your PCs power usage as per your parameters and also help you to save energy as well as your money. Edison ( ya the name will make you to recall man who invented bulb to use energy but ironically in virtual world is helping in saving energy) will help your PC to go Green. Edison allows you to set different energy preferences for work and non-work time, then choose the times you want each profile to run. The power settings determine how long your PC should wait before turning off the display, powering down your hard drive, and suspending your computer. After you set your preferences, Edison also estimates your yearly savings in terms of money, energy, and CO2 emissions. Edison is freeware, requires .NET 2.0 and an email address for registration.

You can find this freeware here

Just give it a try

-Prateek Katiyar

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Lets start with the retailing giant - Walmart. Indeed Wal-Mart is the retailing giant, but what about their sustainability initiatives? Wal-Mart CEO, Lee Scott, committed that Wal-Mart will invest $500 million in sustainability projects and will become the leader in green retailing. they already started selling green products to the masses. Wal-Mart is already the leader in organic milk sales and is the largest buyer of organic cotton. But selling green & organic products is not the only way to become green and eco-friendly. The initiative also involves waste management, energy conservation, lowering the carbon footprint. These are the things on which the giant is working on and soon be trying be be a leader in that area also. Walmart is addicted to be a leader in whatever thing it involves in. But what we have to thing is, it is only the store that should be a green one, what about the supply chain. Retailer strive to convert the supply chain into a value chain but when they will make it a “Green Value Chain”.

- Prateek Katiyar

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The business climate is changing and the so called globalization had already put lot of stress on the retailers. Time to time retailers came up with different and innovating ideas, some of them failed, some became their daily dose of business and some are still in infant stage. But all the previous implementaions showed that you have to ride the wave of change or else you will find yourself beneath it. So what is the current wave retailers are trying to exploit, its the GREEN retailing. To create a sustainable environment for their people and their planet, retailers must take responsibility for being green while staying in the black. The amount of awareness and lots of green initiatives already opening their wings wide open, retailer have lots of stress to go green. So what all retailers are doing to go green …………. See this space for more greener newz

- Prateek Katiyar

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