OPINION
‘Never waste a crisis’ Andrew Goodacre, CEO of Bira (British Independent Retailers Association), discusses how current economic challenges can present real opportunities for businesses
W
e have been warning for some time that high street retailers are facing a tsunami of business cost increases - energy up by 250-300%, rates up by 100%, labour costs up by 10% - and then there is the supply chain inflation. Only the other week I discussed this with the business minister, and while there is sympathy, there is little action from the government. In management there is a phrase: ‘Never waste a crisis.’ I think independent retailers, faced with the challenges outlined above, need to take that phrase to heart. The cost of energy will not reduce in the near future and, if anything, it is likely to increase even more. So, businesses now need to take the steps to reduce energy usage. Obvious, I know, but the advantage of focusing on this area is that retailers can also strengthen their
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own ‘green’ credentials and become part of the positive trend for retailing sustainability. It’s not all gloom in retail, and the drive toward sustainable retailing is becoming a real opportunity for businesses. I’ve spoken to several indie retailers about their approach to reducing their carbon footprint. In
“Combine a more efficient way of running your business with sustainable supply chains and products, and I believe that indie retailers could be onto a winning retail offering”
reality, retailers have to focus on areas they can control directly, and then work with the supply chain to create further sustainable options, and ultimately increase sales. Every business can reduce its costs, from reducing staff hours to using low energy bulbs. There are grants and funds available to businesses to introduce energy saving changes into the premises. However, this is just the tip of the iceberg (a suitable analogy for global warming!) as businesses need to review their opening hours, temperature control, and any number of small actions that collectively make a bigger difference. Combine a more efficient way of running your business with sustainable supply chains and products, and I believe that indie retailers could be onto a winning retail offering. All the recent research suggests that consumers are more aware of environmental issues and want to make informed choices, especially when it comes to environmental impact. The large brands are already working hard and spending lots of money to present their ‘green side’. Indie retailers don’t need to spend lots of money to achieve the same thing, because the local consumer will respond much quicker to strong local messaging on the high street. The sustainability message can also be enhanced by not using plastic in packaging. The plastic packaging tax will soon be with us. I don’t expect this to impact on the smaller retailers, but steps taken to remove plastic would enhance the drive to sustainability. Many smaller retailers re-use the
CEO Andrew Greenacre
packaging they have received from suppliers, which gives a strong message to shoppers about their commitment to reducing their carbon footprint. We have a crisis with the cost of energy. We have an opportunity with sustainable retailing. This is one of those occasions when short term action taken to address the crisis can enhance the longer-term business opportunity for increasing sales and profits. I don’t wish to underplay the energy crisis - it is real and potentially very damaging. However, there is this opportunity to refocus your business in line with consumer expectations and find a way of surviving and prospering.
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