Retailers Boost Sustainability with Tech

Retailers worldwide are responding to increasing consumer demands for sustainable and responsible shopping options, leveraging technology to improve their environmental performance. In Latin America, 44% of shoppers have stopped buying products they perceive as harmful to the planet. As environmental concerns regain prominence following a two-year downturn, retailers are adopting advanced technologies to meet these consumer expectations and drive sustainability in their operations.

“Consumers are increasingly seeking healthy and sustainable products, leading to greater diversification in the channels and store formats they visit to meet these needs,” said Roberto Butragueño, Retail Vertical Director, NIQ, in an interview with MBN. 

Interest in sustainable purchasing is at a five-year peak in Mexico, according to Kantar’s 2023 Sustain to Gain report. The study found that 63% of Mexican shoppers consider sustainability when making purchasing decisions, up from 44% the previous year. This includes both “eco-considerers,” who occasionally prioritize eco-friendly products, and “eco-actives,” who consistently shop with conservation in mind. The eco-active segment in Mexico grew from 15% in 2022 to 21% last year, reflecting a broader trend across Latin America.

Moreover, 63% of Mexican shoppers who seek sustainable products contribute significantly to overall spending, indicating that financial security enables conscious shopping. “This is, of course, a product of social inequities; conscious shopping is a privilege born of financial security. However, it also suggests that the proportion of shoppers interested in waste reduction could increase if sustainable options were more accessible. Latin American shoppers increasingly look to retailers to make that vision a reality,” writes John Gregg, Regional VP and General Manager for Latin America, Sensormatic Solutions, for MBN. 

Popular apparel brands have made slow progress in their decarbonization efforts, according to Stand.earth's 2024 Clean Energy Close Up report, as previously reported by MBN. Despite some improvements, most brands score low in their efforts to reduce emissions and transition to renewable energy. Issues such as “greenwashing” — where companies misrepresent their environmental impact — remain prevalent.

“Implementing sustainable practices can be daunting,” says Gregg, particularly amid economic challenges and rising operational costs. However, with half of Latin American consumers actively seeking companies with environmental impact offset programs, addressing sustainability is becoming increasingly essential. Consumers recognize the complexities of achieving sustainability goals and are supportive of retailers taking initial steps, facilitated by technology.

Emerging technologies are central to helping retailers achieve their sustainability goals. Data analytics tools and real-time processing capabilities provide insights into waste drivers within retail locations, enabling leaders to optimize operations effectively. For instance, real-time tracking allows retailers to monitor the impact of adjustments on various store processes, ensuring that sustainability efforts do not impede performance.

The use of technology in inventory intelligence data helps retailers reduce waste from spoilage and overstocking by offering insights into stock levels and sales patterns, significantly impacting supply chain waste reduction in Latin America, Gregg suggests. Connected systems minimize energy consumption and emissions through in-store power-saving modes and cloud-based remote servicing, while innovations in clean manufacturing and alternative packaging contribute to reducing plastic waste. Additionally, new business models such as circular retail and e-commerce, as exemplified by Brazil’s Renner Ecoestilo program, cater to consumer interest in sustainability, with retail analytics guiding the implementation and assessment of these initiatives.