Don’t put a price tag on green

Retail Systems Research (RSR), a Miami-based firm, found out “winning retailers (those who already outperform their peers)” do not consider cost reduction as a reason to implement green practices.

In RSR’s report, “What Can Green Do for You?,” the firm asked how important are cost savings in discussions of green implementations. Some 48 percent of “winners” said it was virtually unimportant.

However, none of the underperforming retailers surveyed responded the same way. Instead, 77 percent of the underperformers viewed cost reduction as a high priority.

“This is a fascinating indicator of how, once again, winners don’t just do things differently, but tend to do different things,” said Steve Rowen, an RSR partners.

A similar pattern emerged when asked about social responsibility.

“From our results, 72 percent of winners view ethical obligation as an ‘important or higher’ motivator to bring about more environmentally-responsible products and practices. Only 28 percent of laggards identify ethical obligation as any type of importance at all,” he said.

And 71 percent of underperformers pointed to ethical obligation as “less than important,” with 57 percent identifying it as of “little to no” value at all.

Retailers that outperform their peers are actually investing now, giving less thought to cost-reduction and viewing the brand building done today as smart business for when customer demand invariably heightens, Rowen said. In addition, winning retailers recognize that their actions have greater impact than that of just financials.

The report will be available for purchase April 24.

-- Kelli