The voices quieted, people found their seats, the bustling slowed…

“Can retailers save the world?”

The oddly profound question was posed from the podium.

Big question, some retailers thought – can I change the world? Maybe influence a trend, hopefully add a new product or value to the market, perhaps be that go-to retailer for some of my customers – but change the world?

Mark Startup, President and CEO of Retail BC continued “as an association of retailers passionate about retail excellence, should we be able to change the world?”

Again, people shifted a little uneasily in their seats unsure of where this challenge was going, realizing on some level the absurdity of the question, and on another the validity of it. Hearing this challenge was not only a few retailers with passion, but fifty CEO’s, COO’s, Senior Managers, Owners and Presidents of BC’s most influential retail companies.

What ensued was over two hours of conversation about why, why not, and how BC’s retailers can begin to understand their opportunities and challenges when faced with how their livelihoods impact the world – for better or for worse.

You see, on Monday Feb 2nd, fifty key players were invited to a summit to discuss the role retail plays on our environment, and on our world. As an industry based on promoting consumption, the foundation of successful retailing (which is increased sales) can be seen as the antithesis of conservation and sustainability. In fact, it was pointed out that Obama’s stimulus package for his country is entirely based on increasing spending, and thus consumption. The focus and intention is to stimulate many industries, and retail is one of the most vital.

Should the conversation have ended there? It could have. Retailers could have denied the invitation, decided that this would be a waste of their very valuable and limited time, and gone on with the next strategic merger, marketing decision or buying trip. However, these leaders are just that - leaders - because they have a powerful sense of responsibility, to their customers, their people and their community. And the voices of these three important stakeholders are whispers gaining momentum speaking up for sustainability – and the voices inside their own heads are echoing the same words.

For every idealist, there are more than a handful of realists - retailers are no different. Aware of the bottom line, and committed to turning profits, a warm and fuzzy feeling neither appeases stakeholders, nor supports the longevity of the business, so real concerns – and barriers were raised by many.

There are challenges on moving to a sustainable model, especially for retailers who have yet to commit and ‘buy in’. It seems that minor changes on the operations side of the business, such as breaking down and recycling boxes, changing up lighting, ensuring shopping bags were either recyclable or biodegradable, were more of the norm than the exception. Many retail renovations are being conducted with sustainable ideas in mind; procedures are being brought in at every staffing level to contemplate energy savings. At a time of thinning margins, the latter, resulting in reduced energy costs, is an attractive option for many retailers.

Where the challenges arise are with customer expectation, product sourcing and interprovincial discrepancies. Each of these obstacles bring with them their own roadblocks, and what was discussed also led to some opportunities.

Customer expectation appears to be an interesting obstacle. First and foremost, many shoppers look for value, quality and above all, cost before making a decision to purchase. When all else is equal – they will then look to added benefits such as ‘locally made’ or ‘made from sustainable materials’. Some eco-minded shoppers will pay a premium for ‘green’ products; however en masse Canadians are still unconvinced that eco-products are worth their financial backing. The key here is to discuss the value and long term wear over pricing – which is easier in some categories than others.

This led the group to the topic of product sourcing and supply chain compliance. With limited purchasing opportunities, how are retailers to stock their shelves with sustainable products? Some retailers have found products that meet their own high standards and values, but again – at a premium. In response to this challenges, some BC retailers who typically compete in their category, have come together to be able to demand compliance from their shared suppliers to incorporate more sustainable practices into their own manufacturing, packaging and shipping procedures. This however, requires significant buying power to have the influence needed to illicit change.

And finally, many chain retailers highlighted interprovincial discrepancies as real challenges for nation-wide sustainability programs. Standards in Nova Scotia differ significantly from those in Alberta and vice versa. The standards make it challenging to use biodegradable bags as the definition and requirements differ from one province to the next; this creates a significant challenge to comply and meet the diverse standards throughout Canada. This challenge, as with the others, can all be solved with increased capital and unlimited resources to spend at will. However, we all know that retail margins are not what they once were, and this would be impossible – a theme that immerged time and again throughout the discussion.

Though conversation erupted at each breakout session, and many options were met with their own challenges, it was clear that there is a desire from the community to take action and lead our industry into a sustainable future. At the end of a few hours of discussion, debate, disagreement and consensus, there was an understanding that the retail industry needs to decide if this initiative is important enough to make a bold statement and stand with a shared vision.

There was also an understanding that initial small changes can, and will, impact the internal culture and the overall perception of the industry that is often seen lagging behind other industries with an established commitment to sustainability.

Retailers, however, also shared an understanding that they have the ability to impact their circle of influence – customers, staff, and in some cases even suppliers, and need to build a vision for a sustainable future into their business model.

The summit didn’t solve the world’s problems; in fact, as any good summit tackling a foremost issue should, it raised many more questions. However, one theme resonated loud and clear; the internal understanding of how we are borrowing this planet from our children, began to mesh with more top of mind considerations regarding business practices. And at a time where the meeting of these two perspectives is rare, the summit was a significant starting point.

And now, retail leaders are heading back to their companies to bring back some shared ideas, and find out how other aspects of their businesses are run to perhaps integrate some new behaviours. And still others can empathize and understand, even when their category will be one of the most difficult to ‘green’ in the industry.

So as ideas were left to sink in, and adversaries shared a drink, an understanding was reached that this is the beginning of a significant undertaking within the retail industry. Leaders will immerge, programs developed and issues lobbied, and the most significant question resounded loud and clear: are we as an industry and as individuals, going to change with the world, or going to change the world? - it’s our choice.