Sustainability in Retail: Insights from Impact Ireland 2024

We joined brands, retailers and industry gurus from the POPAI community at last week’s Impact Ireland: Sustainability in Retail event held in Dublin.

Alongside global brands like Diageo, HP, and Heineken, as well as major retailers such as Boots, we delved into sustainability trends shaping the retail landscape over the next 12 months. We looked at opportunities for retail brands to commercialise sustainable choices effectively, highlighted examples of success, and addressed key barriers to progress.

Presentations and focus points ranged from sustainable materials and design innovations in point-of-sale displays to communication and understanding the shopper. We also examined the crucial role of POS in supporting effective product recycling efforts, demonstrating how retail environments can play a pivotal part in closing the sustainability loop.

Consumers and the Complete Shopper Journey

One of the most actionable insights revolved around the complete shopper journey. Sustainability begins well before customers enter a store. It starts with internal or agency-led creative processes that integrate sustainability into the broader brand experience. While the in-store environment offers an immersive opportunity to engage consumers, this must align seamlessly with the post-purchase phase across other marketing channels. Achieving this requires working with partners who have expertise across the full journey to ensure consistency and continuity.

The concept of “phygital” – blending physical and digital experiences – was a prominent theme, showcasing how sustainability can enhance retail strategies. Crucially, however, sustainability should complement, not dominate. It must act as a value-add rather than the central focus, ensuring that core customer needs are met first before introducing the “green benefits.”

Addressing the Value-Action Gap

A significant challenge for retailers lies in the value-action gap. While numerous reports, such as those by Deloitte UK, indicate that a majority of consumers claim sustainability influences their purchasing decisions – with some studies citing figures as high as 70% – real-world behaviours often fail to align. For instance, despite many shoppers stating they would pay more for sustainable products, only a small percentage follow through.

This intention-action gap underscores the need for retailers to make sustainable choices more accessible and intuitive. The concept of the “invisible hand” of sustainability was highlighted as critical: embedding eco-friendly practices so seamlessly into the consumer journey that making sustainable choices becomes effortless.

Interestingly, consumer engagement with sustainability trends is strongest among two key demographics: 18-24-year-olds and those over 55. Understanding and targeting these groups could be the best place for retailers and brands to focus on.

Designing for Sustainability

A pivotal takeaway was the importance of sustainable design. According to the Ellen MacArthur Foundation, 80% of a product’s environmental impact is determined at the design stage. This statistic underscores the power of designing POS and retail displays with circular principles in mind to reduce waste and enhance resource efficiency.

The industry now has access to a greater variety of alternative materials that outperform traditional options in both sustainability and cost. Coupled with advanced design capabilities, robust data insights, and better end-of-life solutions, there are few excuses left for not embracing sustainable design. Retailers and brands must adopt these principles as standard practice.

Transparent and Honest Messaging

With stricter regulations around “green claims” coming into force, the days of vague or unsubstantiated sustainability statements are over. Transparent, authentic messaging is more critical than ever for maintaining consumer trust and credibility.

Diageo’s presentation highlighted how understated, fact-based communication, showing how a commitment to honesty can succeed in connecting with customers. Retailers risk significant reputational (and financial) damage if their sustainability claims are perceived as insincere. Instead, brands must focus on substantiating their messages with measurable impact metrics, helping consumers understand the positive outcomes of their choices.

Strategy Strategy Strategy

Sustainability is a multifaceted challenge that requires a well-defined strategy. Retailers face growing demands from consumers, tighter legislation, increased data reporting requirements, and heightened expectations around supply chain transparency. Developing a clear, forward-thinking strategy is therefore essential.

Collaborating with experienced partners is critical to achieving this. Partners who can provide insights, adapt to market changes, and share best practices can accelerate progress in areas such as design improvements, data sharing, and communication. By aligning these efforts into a cohesive strategy, brands can meet consumer expectations and maintain traction on sustainability initiatives.

 

Top 3 Takeaways from Impact Ireland 2024

  1. Adopt a Circular Mindset: Sustainable retail displays and POS must consider end-of-life solutions right from the design stage.
  2. Collaborate Across the Value Chain: Transparency and collaboration among brands, retailers, and suppliers are essential to scaling sustainable practices.
  3. Bridge the Value-Action Gap: Make sustainable choices intuitive for consumers and ensure consistency across all customer touchpoints, from in-store displays to digital interactions.

 

If you’d like to explore these insights further or learn how we can support your business with sustainable retail solutions, we’d love to hear from you. Reach out at [email protected].