Most consumers thinks that retailers could do more to improve their green credentials, says a recent report, stating that consumers want budget-friendly ways to shop green.
According to the latest data from Retail Insight, despite increased grocery prices and the rising cost-of-living, 79 per cent have tried to be more sustainable in their buying habits in the last 12 months.
With the average UK household now spending £87 on groceries each week, 82 per cent are trying to reduce food bills in response to the cost-of-living, up +16 per cent year-on-year.
This shift towards green and economical food spending is also changing how consumers want retailers to evolve their sustainability efforts. Eighty three (83 per cent) said retailers could do more to improve their green credentials, rising +9 per cent year-on-year and increasing to 90 per cent of Gen Z respondents. Meanwhile, almost three quarters (72 per cent) felt retailers spent too much time championing ‘obvious’ green initiatives, such as recycling, and should do more to focus on reducing food waste.
While disposable incomes remain squeezed, UK consumers’ desire to shop ‘green’ is prompting a shift in sustainability efforts, with shoppers now focusing on minimising food waste, helping them to protect their wallets as well as the planet.
Almost half (49 per cent) now ensure they only buy the food they need to reduce waste – up +2 per cent compared to 2022 – while 47 per cent are turning to discounted groceries that are expiring to help retailers send less food to landfill. A further 41 per cent have started meal planning to cut down on overbuying food that could lead to food waste, up +5 per cent year-on-year.
Paul Boyle, CEO of Retail Insight, commented, “Our research shows that despite the ongoing squeeze on household spending, consumers want budget-friendly ways to shop green. This is prompting more acceptance and demand for marked-down food that cuts costs and reduces waste.”
“Retailers will need to act to meet the increased demand for marked-down goods but will need to ensure that they are maximising their sell-through,” Boyle continued.
“Currently, 90 per cent of retailers use static markdowns to sell-through fresh or ambient products nearing their best, which apply binary discounts at various stages leading up to the end of the product’s shelf life. While this helps drive demand, these discounts aren’t optimised for volume or profit maximisation, meaning retailers miss out on uncaptured margin and create excess waste – a ‘lose, lose’ situation. By adopting dynamic markdown models, retailers ensure they don’t leave margin opportunities on the table.”