Ethical buyers to drive retail strategy 

The ethical buyer is having a significant impact on future retail strategies, as half of retailers set to focus on this area in the next two years, a new research has revealed.

Brand reputation is the main driver behind ethical action, closely followed by attracting and retaining customers, according to the survey conducted by leading consultancy firm RSM.

The survey also revealed demand for more flexible and faster delivery as the joint top area of focus for retailers– highlighting the impact consumer behaviour has on future retail strategy.

In addition, more than half (55 per cent) of retailers see reducing their carbon footprint as the most important social and environmental issue that retail businesses need to address; with sustainable supply chains (53 per cent) and being a conscious employer (52 per cent) making up the top three most prominent issues.

However, only 37 per cent of retailers said that reducing environmental impact was a priority for them – highlighting a slight mismatch between views and action.

“The importance of strong ethical credentials to consumer-facing brands can’t be overstated. The ethical buyer spends with brands that have a positive impact on society and are more likely to boycott brands that fall short,” Jacqui Baker, head of retail at RSM UK, commented.

“So, it’s not surprising that brand reputation is the main driver for social and environmental changes as high-profile naming and shaming for poor treatment of staff and suppliers not only creates a reputational and commercial risk, but it can make it much harder to attract new staff and customers. Being a conscious employer goes way beyond brand reputation, it needs to be embedded into the fabric and culture of the business to really resonate with employees and consumers.”