06 Apr 2020
Posted in Retail
COVID-19 pandemic will put sustainability concerns on hold, says GlobalData
Sustainability was the buzz word of 2019 and would have continued to increase in prominence in 2020. However, the global outbreak of coronavirus (COVID-19) will bring progress to a halt, according to GlobalData, a leading data and analytics company.
Emily Salter, Analyst at GlobalData, comments: “Making changes to materials, logistics and production processes to improve the sustainability of products and operations will slow, as sustainability is no longer top of retailers’ and consumers’ agendas. This is due to long-term adjustments being costly and many non-food retailers will be financially unstable as they emerge from this crisis after a significant period of low or no sales.”
Sustainability and single-use plastic will be less important to many consumers in the short term where hygiene and cleanliness is more of a priority to prevent the spread of the virus. Prior to the outbreak, shopping habits were starting to shift – 74% of nationally representative UK consumers surveyed in 2019 said they would prefer to shop at a retailer that has more loose fruit and vegetables. However, the prioritisation of health over the environment has led to a drastic increase in sales of anti-bacterial gel and hand wash in plastic bottles, with little regard for plastic-free alternatives or refills that may be available.
Salter continues: “Another issue is the problem of unsold stock that retailers will be stuck with, as all non-essential stores and some websites have ceased trading temporarily. Some items and ranges could be able to be sold at a later date, but this may not be the case for highly seasonal and trend-led pieces, raising questions about how these items will be disposed. Given Burberry came under fire for burning stock in 2018, retailers must be careful how they deal with this issue. Acting quickly, Kurt Geiger has announced it plans to donate some of its stock to NHS staff, clearing through the excess while also generating positive press.”
Additionally, during the outbreak consumers will be less likely or unable to buy second hand items – sales via some Facebook neighbourhood groups for instance are being discouraged or stopped, and willingness may decline after the crisis is over due to lingering concerns about the hygiene of used products.
Salter concludes: “Although sustainability will slowly become more important again once the spread of COVID-19 has ceased, the increased awareness of cleanliness and germs is likely to remain at the forefront of shoppers’ minds and will continue to hinder the growth of sustainability initiatives, such as refill stores.”