At a time of increasing uncertainty and change across the global retail industry, together with our international partners, JCWG felt that it was critical to understand more about how retail leaders are identifying and responding to these challenges. Part four of five blogs on this report focuses on Purposeful Retail.
In the evolving landscape of purposeful retail, where sustainability and diversity take center stage, a profound commitment to turning words into actions is becoming increasingly crucial. Our recent findings shed light on the intentions and challenges that retail executives face in aligning their businesses with these values.
A notable 4-in-10 retail executives express dissatisfaction with their current efforts, believing their businesses pay (far) too little attention to making their offerings and processes more sustainable. This sentiment signals a collective desire among leaders to steer their organizations toward more eco-friendly and socially responsible practices. Half of the respondents emphasize that their attention to sustainability is aligned with the urgency of the matter, highlighting a growing awareness of the need for swift action.
Examining the consumer perspective, we discover a nuanced picture. While 38% of respondents actively experience a (very) high level of awareness and demand from customers regarding sustainability and diversity, another 31% do not perceive such developments at all. This complexity in consumer behavior underscores the importance of understanding and responding to diverse customer expectations in this arena.
Notably, the Fashion, Shoes, and Sport category lags behind in conscious consumerism, with only 27% of respondents actively experiencing these developments. This indicates a need for heightened efforts and targeted strategies in these specific sectors to meet evolving consumer expectations.
Turning to the actions that respondents are currently taking or planning to implement in 2023, three key areas emerge:
- Discovering and leveraging opportunities in circularity and recycling.
- Installing diversity and inclusivity standards in hiring processes.
- Improving transparency in the sustainable value of product offerings.
However, regional disparities reveal that in North/South America, fewer actions are being taken per respondent compared to the EU, indicating a potential lag in addressing these issues in these continents. Interestingly, 67% of respondents in the Americas are actively working on integrating diversity and inclusion in hiring processes, the highest across all continents.
Recognizing that the product or category in which a retailer operates plays a pivotal role in determining actionable steps, the challenge lies in finding sustainable solutions that suit the nature of each business. While refurbishment may not be suitable for every product, some categories may find success in emphasizing repairability.
Purposeful retail demands a commitment to bridge the gap between intentions and actions. The journey toward sustainability and diversity requires a holistic approach, understanding diverse consumer sentiments, and tailoring strategies to fit specific industry nuances. As retailers navigate this path, the true essence of purposeful retail will emerge not just in words, but in the tangible actions that shape a more sustainable and inclusive future.
Unlock valuable insights and stay ahead in retail leadership! Download the World Retail Congress Global Retail Executive Survey report today to gain a competitive edge, informed decision-making, and actionable strategies. Click the link here to access your copy now!
Need help defining your retail business’ purpose? Reach out to the team at JCWG!
Image Source: Ketut Subiyanto from Pexels
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