By Gail Appleson
ST. LOUIS POST-DISPATCH
01/17/2008
Green is the new black when it comes to what's in fashion among retailers attending their biggest trade show of the year.
Going green was a key topic at the National Retail Federation's annual convention that ended Wednesday in New York City. Not only did Wal-Mart, Kohl's, Best Buy and other retailers make presentations about their efforts, but for the first time the meeting's huge exposition center held a "Green Pavilion" of vendors showing everything from gift cards made from recycled plastic to energy-saving cash registers.
Also, a group of retailers calling themselves the Sustainable Retail Consortium had its initial meeting here Wednesday.
"Green is not a trend, it's a new way of life for us," Dan Butler, NRF vice president of merchandising and retail operations, said. "Going green is not going to go away."
Retailers know that there is a growing interest among consumers not only about buying environmentally friendly products but shopping at stores that have "green" policies that govern the merchandise they sell as well as how they operate their own businesses, he said.
"One of the things of increasing importance for all businesses is managing their reputations," said James Fisher, marketing professor at St. Louis University's John Cook School of Business. "Companies have to be more vigilant. They have to be ahead of the next trend. That's what they are doing here. I see it in the context of the bigger picture of corporate governance and corporate responsibility."
Businesses are being held to a higher standard and particularly retailers because "they are in our everyday encounters," Fisher said.
Wal-Mart Stores Inc.'s image, for example, has been battered by criticism of the salaries and benefits it pays workers along with its long-standing battle against unions.
However, over the last two years it has emerged as a leader among retailers for adopting ambitious "green" policies that govern a wide number of areas. These range from the products it carries, where they come from and how they are made and packaged to energy-saving and waste-reducing efforts within its stores.
"Wal-Mart is definitely doing a lot of things that are different and they are a huge leader," Butler said. "What they are doing could have a huge impact on the entire industry."
Indeed, retailers and suppliers filled an NRF "super session" on "Environmental Sustainability at Wal-Mart" on Tuesday.
During the session, Leslie Dach, Wal-Mart executive vice president of corporate affairs and government relations, discussed the lessons the giant retailer had learned and urged other retailers to join its efforts. These changes don't have to cost customers more, they can save them money and they also may help a retailer's bottom line, he said.
Wal-Mart realizes that its core customers don't have the "luxury" of choosing between a value-priced item and a more expensive product that's good for the environment. So it is trying to offer inexpensive products that are Earth-friendly, Dach said.
For example, Wal-Mart plans to sell only concentrated liquid laundry detergent and is in the process of phasing out larger jugs. The conversion is to be completed by May. The smaller bottles are made with less plastic, use less packaging material and less fuel for transport.
For consumers, it is more economical and easier to carry.
Wal-Mart hopes this effort will move the entire industry toward smaller bottles, Dach said.
Among other efforts is the company's work with vendors to reduce paper packaging and eliminate waste. For example, it is aiming to develop "Extended Roll Life" products that condense several rolls of toilet paper or paper towels onto one roll. This reduces the amount of plastic wrapping and cardboard roll cores. It also means more of these products can fit on trucks, thus reducing fuel consumption.
Wal-Mart also offers incentives to its employees to sell and promote environmentally friendly products. In the St. Louis area, the Wentzville Supercenter won a regional award from Wal-Mart last year for best sales of certain Earth-friendly products.
Other retailers agreed that "green" efforts are not only the right thing to do, but they will pay off in the long run due to customer approval and loyalty.
L.L. Bean, for example, has been expanding its bricks and mortar operations and opened three stores last year with a new prototype using energy- and water-saving technologies and recycled materials such as rubber flooring and fixtures made of reclaimed pickle barrels and barn board.
Ken Kacere, senior vice president of retail for L.L. Bean, said during a convention presentation that the company's customers want to see and understand what L.L. Bean is doing in the stores and to be part of the experience.
"The more you can bring it to life to them, the more it resonates with them," he said. The new stores, located in the Northeast, are being well-received by customers and L.L. Bean expects significant sales growth.
"Five years from now being green should not be that big of a deal," said Joseph Nevin, senior principal of Bergmeyer Associates. His firm designed the new L.L. Bean Earth-friendly prototype. "It's the way it should be."
When the new Wal-Mart Supercenter opened in Columbia earlier this fall, it provided job opportunities for more than 200 people...
