Creating Culture of Change for Retail Sustainability (Passion For Retail 09)

Creating A Culture of Sustainability

Retail BC

Passion for RetailConference

May 5,2009 - Vancouver BC

Panelists

Amy Curry-Staschke, Director of Global Compliance, Lululemon.

David Labistour, CEO of Mountain Equipment Co-op.

Satnam Lalli, Independent Pharmacist and National Board of Pharmasave.

Carmen Spagnola, Founder of M, Sustainable Bed and Bath Retailer.

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Change

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Change

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Three levels of true green

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Three levels of true green

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Complex systems

Retail shapes

shoppers

Shoppers shape retail

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Retail strengths and weakness

Stronger: on tactics and short-term strategy, adaptation to its ‘environment’ and adopting new tactics.

Weaker: true innovation, organizational change, long-term vision and strategy.

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Types of retail competitors

Mom & Pops(Self employed)

Growth start-ups &

concepts*Chains

The majority

At risk (but continuously

emerging)

Fewer in number

Catalysts for retail

innovation

Concentration of Sales $

Greatest influence

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Technology drives retail change

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Global Sourcing has too

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“Good & Evil”

Often a paradox in the same shopper.

Shoppers want green plus:Price, Quality,

Convenience, Design

This is changing...

... frugal = chic?

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Canadian Retail Sales % ChangeDecline begins in Nov.

All RetailLess Automotive

Source: Statistics Canada

% change from same month prior yr.

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Now = tide is changing

Long period of growth slowing even earlier

“Rocks” getting exposed

There will be a period of retail chaos

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Short-term challenges

No growth

Some winners

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and opportunities

Acquisition

Real Estate

Improvement

For those with good balance sheets

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Green still on agenda

Must help bottom line

Catalyst to price curve

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Sustainable Retail

The next transformative catalyst!

Similar to Internet in 90’s

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Lessons from Internet adoption

Disruptive or Transformative?

1994 20091999

Dial-up, bbsemail

Publishing“Yellow Page”Netscape

“Retail Dead”New EconomyEcommerce

Alt. ChannelsDSLRich media

Multi-ChannelWeb 2.0Alt Platforms

Discussion:Creating A Culture of Sustainability

Retail BC

Passion for RetailConference

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Q1: Possible barriers… (from DIG360 Retail Cares Study)

Customers not paying for it.

Lack of human resources

Budget restraints

Lack of time

We are doing much already; there are diminishing returns to our efforts.

Customers not demanding it

Difficult to make a business case

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Question #1

Why discuss “change”, “strategy” & “culture”? ...

... we’ll tactically outsource or add solutions created by others as appropriate.

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Sustainability drivers

Waste Reduction – cost savings

Not green product sales Health + kids excepted Price falling will help

Labour Market key

Risk management

Brand differentiation

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Q2: Green retail drivers (Executive survey from DIG360 Retail Cares Study)

More common

It’s simply ‘the right thing to do’

Reducing costs

Acting as a general brand differentiator

Avoid lag behind our peers

Attracting and retaining employees

Meeting regulation

Less common

Generating sales from “ethical” shoppers

Responding to key product vendors’ demands

Attracting investors

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Question #2:

OK, so we should consider ‘culture’, change management ...and continuous green improvement...

But how do I build that foundation in my organization? What do I need to consider?

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Question #3:

What is retail’s gift (to a sustainable future)?...

Am I to be an outstanding adapter and adopter of other solutions? Or... help develop the future ?

Do I do this alone, or work with peers?

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Green retail activities (Executive survey from DIG360 Retail Cares Study)

More common

Reducing waste in operations +/or reducing energy use.

Offering environmentally friendly products to consumers

Mandating eco-friendly packaging

Developing or designing green products

Incorporating green procurement of supplies and services.

Less common

Supporting specific environmental groups

Conducting green building and design (such as LEED)

Many mall-based / leased premises

Using green power

After sales environmental product stewardship

Public accountability reporting

Participation in carbon offset programmes

Thanks!

For more information, contact:

David Ian GrayDIG360 Consulting Ltd.

davidiangray@dig360.cawww.dig360.ca

Follow on Twitter: www.twitter.com/davidiangray