The subject CSR in mass distribution it is not new. But in today’s context, when the planet is at the center of attention, this topic takes on a larger dimension in the hearts of consumers. And the big retail brands have understood this well.
Development of awareness of CSR issues in mass distribution is exciting because the industry has now reached a stage of maturity that requires it to find new tools for growth and new means to develop its competitiveness. PUSH CSR is one of them and has become a major problem in the industry within a few years.
In this article, we will explain how retail banking works CSR as a growth lever.
The return of mass distribution will have an angle CSR Important. Not that the sector wants to show that it is ready to do anything to save the planet (that’s not the question), it’s all about acceptance new ways of more responsible consumption AND reduce the carbon footprint as much as possible caused by industry activity.
Mass distribution, which is firmly anchored in the everyday life of consumers, clearly has a role to play in conveying its values in terms of Sustainable Development.
However, the sector has undoubtedly reached the end and this is pushing brands envision a new economic model : 1, hypermarkets are no longer as attractive as before and 2, consumers have changed their habits (especially thanks to the rise of the web). The industry is therefore very interested in thinking about the world of tomorrow: innovating, diversifying and finding new differentiation strategies. This leads to a redefinition of its location and a review of its communication. This is the place CSR interferes.
Large-scale distribution must respond to two main challenges in its development:
- preserve the DNA of the brand, what makes up its history, communicated values, mission;
- improve the image conveyed and the way it wants to differentiate itself from its competitors
In practice, of course, it includes communication (see for example how Intermarché playing the emotion card or whatever Crossroads insists that ActForFood strengthen its proximity). But it also includes developing concepts, revising its range, expanding the local offer, defining the location policy, revising its external/internal layout, optimizing its surfaces for investments in sustainable solutions (electrical distribution, solar panels, green facade).
These projects are carried out by all brands without exception
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Failure to apply the CSR policy weakens the brand’s competitive position
PUSH CSR has become a development criterion for large retail brands within a few years. They are involved in building the image and spreading the values they want to convey.
Of course, mass distribution does not work alone. Policy decisions often accompany the orientation: Garot law, Agec law are among the recent policy decisions that have given the industry an impetus and allowed many solutions to be deployed on a large scale. This would already be the case for anti-waste strategies, for example, and will undoubtedly be the case for refunding advances.
CSR responds to new consumer expectations and is more sensitive to sustainable development
Recent history has shown that consumers gravitate towards brands that implement a low price policy.
But one value has changed. The consumer is becoming more responsible and this criterion is becoming key when choosing brand sponsorship.
The modern consumer defends his consumer interest by looking for products that provide good value for money, guarantee reliable information and safety of use. It also defends its civic interest through a responsible consumer approach: consumption that incorporates the principles of collective well-being into the selection criteria, beyond the definition of consumer interest limited only to value for money.
The commercial transaction is thus revised, “transitioning from an exchange responding to the typically economic logic of maximizing marginal utility to a social relationship with a moral and political content.”
Here are the major environmentally responsible initiatives undertaken in mass distribution
We mentioned about food waste, because this fight is one of those that has had the greatest impact on the French in recent years. However, there are other fields where CSR intervenes.
Food waste
Backed by the Garot Law, brands are consolidating theirs fight against food waste. While there are certainly many things that need to be put in place, the battle is now facing the shops.
Upstream data detection using artificial intelligence technology, recovery of unsold goods, anti-waste bin, recovery of animals, there is no shortage of actions.
And that resonates with consumers, as evidenced by the success of social media posts on the topic.
Recycling (in the broadest sense of the word)
The topic of recycling is vast packaging there are many for recycling. Whether it is plastic bottles, providing pallets, providing blank sheets of paper on one side, cigarette butts, coffee capsules, light bulbs, batteries, masks.
Instead of a local menu
Large-scale distribution relies on short circuits and struggles to developlocal menu. By the term “local offer” we must understand that these are products listed in the store without the need to go through an intermediary. Here it is the manufacturer who is in close contact with the store.
This trend will continue even more in stores in the coming weeks. Several projects are opening to increase this value local menu in the shop :
- referring to new manufacturers
- digitization of manufacturer/distributor relations
- better promotion of the local offer in stores
Today, the share of local offer in the hypermarket is around 2%. In an optimistic future, this number could double to around 5%.
No more plastic
Michel-Édouard Leclerc made it a struggle in the early 2000s. Plastic is now gradually disappearing from stores. Replaced by kraft bags, cotton nets or even burlap, plastic will disappear entirely in the coming years. Some departments are still struggling to completely replace it: the pastry department is a perfect example.
End of paper prospectus
Great topic. THE local initiatives stop the prospectus continue to proceed. All brands are participating. Sometimes a little standard in the face of costs and lack of paper, or in fact ecological beliefs. Cora stopped distribution in 2023. Leclerc generalizes the removal of the prospectus in September 2023. Other brands follow the movement in a more gradual way.
Second hand and second hand
Thanks to the support of digital solutions such as LeBonCoin, BackMarket or Vinted, consumers finally approved this new way of consumption. Rather than buying new products, they now easily switch to second-hand products. Entire departments are beginning to devote themselves fully to this new way of consumption, with the support of, for example, Rediv, which supplies second-hand stores.
In bulk
Bulk sales should represent 20% of the sales area in supermarkets by 2030 (a project required by the Climate Act). Consumers demand this practice but often avoid it because of the high prices.
Meanwhile, mass distribution has little choice but to follow the rule and provide solutions: bulk in the fruit and vegetable section, at VAT, in liquids and even in the back-to-school section with playpens.
Setpoint
Initiatives around deposit in mass distribution are still marginal. Nevertheless, it is well anchored among its German neighbors order in France it is slowly coming back. PUSH order consists in returning the container to the place of purchase of the product so that it can be reused.
Loop with Carrefour is being deployed in stores. A solution like NoWW also appeals to some hypermarkets in the west of France or Bernie.
Water management
Like energy, water will also be subject sobriety plan. Carrefour was one of the first brands to commit to reducing water consumption at its points of sale by 10% by 2025.
Solar panels and shades
of Solar Panels on the roofs of hypermarkets. This script could be written in the coming months. The law also aims to require large stores to cover half of their parking lots with shade Solar Panels. This represented an investment of almost 9 billion euros.
Revegetation of surfaces
Other stores prefer green solutions reduce their carbon footprint. On the roof, on the facades, greening has proven itself in reducing heat in the city, developing biodiversity through the development of ecosystems; retain rainwater and also allow better integration of buildings into the urban landscape.
The Green It
We probably haven’t heard the last about Green IT.
THE Green Italso called responsible digital, refers to digital practices that result in reducing one’s own carbon footprint (editor’s note: digital represents 4% of global greenhouse gas emissions).
Specifically, it involves the use of IT tools:
- extending the life of computer equipment: repairing rather than buying new;
- prioritize purchases of refurbished equipment;
- choose local servers: storing data on servers hundreds of kilometers away is very energy-intensive;
- turn off computer equipment in the evening;
Today, simply turning off computers in the evening has a greater impact than turning off a sign on a facade.
So many actions in a nutshell that contribute to making business more responsible.