Bringing Sustainability to Retail

Keen Footwear markets itself as "an active outdoor company," staffed with employees who enjoy nature and care for "the world we live in." It makes sense that its marketers would extend that environmental sensitivity to their in-store presentation--but that philosophy brought some challenges that remain to be met."As part of our overall brand strategy and personality, we have taken a stand on sustainability," says Tony Kaplan, retail marketing manager for the Portland, Ore.-based shoe company. "We want to take small steps toward being kinder to the environment as part of the brand's platform. As we started work on our new global merchandising system, we wanted to ensure it was consistent with that philosophy. So we took a step back to look at materials first, to see what we could be doing differently and be more aware of what we were producing."The result was a line of wall, table and bench fixtures made from wheat board, which is constructed from chopped wheat straw, and sunflower board, made from the hulls of sunflowers. The wall program features a variety of shoe shelves made of wheat board, Kaplan explains. Tables and benches are made of wheat board with fluted corrugated on the sides and as filler for the tabletop, with a sunflower-board top. A corrugated wall system with metal reinforcement also is being used, with recycled cardboard serving as a substrate for graphics."Wheat board provides a better solution than MDF or other pressed boards, and it really stands out," he says. "It makes a statement about the brand and ties in with the consistency of our message." The program began rolling out last fall, with components reaching about 100 stores in 2007. The goal is to have at least some elements of the program in about 500 locations worldwide in 2008 and grow from there, with concept shops a particular focus.Work to be DoneThe program fits Keen's message perfectly--but there is still work to be done to make it the perfect merchandising system, he notes. "The resolution on the cardboard is not as crisp as we can get on other materials," he says. And some high-end retailer response has been skeptical. "It was a bit of a hard sell, because they thought we wanted to put a 'pizza box' into their stores. They were concerned how it would fit with their high-end image." The materials were sourced with the help of a retail agency. "We spent a fair bit of time researching the options," he says. "That was a big part of the process." Their use also bit into the budget. "No question, these materials are much more expensive," about 25% to 30%, he estimates. "But I expect that cost to come down as more of the materials are produced and fabricators become more familiar with them. There are a lot of amazing materials on the graphics side, and that's what we're looking at next."Keen doesn't promote the sustainability of its displays in the store, he notes. But that attribute is promoted in sell sheets to the retailers. "We want to mark our fixturing system with a badge of sustainability and recycling, and create a message for the retailers that reinforces to them what we're about. We also want to create messaging that makes that point for consumers without taking away from the product focus, but we haven't gotten there yet."These tradeoffs work for Keen, which is associated closely with the environment. But other companies may find the drawbacks too daunting. Even so, a variety of marketers and retailers are finding ways to make their programs incrementally more environmentally friendly today. Green Merchandising Grows For instance, General Mills' Pillsbury division is using a "green" cooler to merchandise ready-to-bake products that uses less electricity. They also don't contain compressors or oil, so they can be shipped more economically. "It's critical for us as a company, as a category leader, to demonstrate leadership," says George Tuszkiewicz, new technology leader at Pillsbury.Clorox has introduced the Green Works line of products that marketers call "the first line of natural cleaners developed by a major consumer-products company." The five-SKU line, rolled out nationally in January, includes plant-based ingredients and recyclable packaging. Retailers can take advantage of these products to build their own image, notes Robin Albing, founder of the Albing International Marketing consulting firm in Flemington, N.J. "As these product lines grow, the amount of shelf space they receive grows, and retailers are separating them out." She noted the Clorox products displayed across the aisle from traditional cleaners in a mid-level ("not upscale") supermarket, she says. That draws more attention to them and reflects on the store for carrying these products. Universal's Varied EffortsSome companies are changing their policies at a fundamental level to ensure more sustainable concepts are incorporated. NBC Universal, for instance, tied into its DVD release of the eco-friendly movie "Evan Almighty" with several promotions to aid the environment. It also produced displays made of recycled materials and released the Canadian version of the DVD in a thin cardboard sleeve. The display pieces were so effective that the company now intends to use the recycled materials for all of its 2008 displays.The initial impetus came from parent company General Electric, which promotes the Ecomagination program to find more environmentally friendly ways to build products, explains Elizabeth Bishop, director of creative services for the University City, Calif.-based company. "It was the right title to work with, and GE gave us the catalyst. We challenged our vendors to help find the best approach." A key goal was to increase the post-consumer recycled material in its display pieces, she says. Displays typically used 25% post-consumer material, but marketing agencies helped uncover materials that were 75% post-consumer recycled materials. "It was fantastic to be able to triple our recycling efforts for these pieces all at once," she says. The cost was about the same, she notes, and she expects them to drop as more of the material is produced. The recycled materials proved successful both aesthetically and structurally at retail, she says, and it now will be used throughout Universal's merchandising for the tens of thousands of display pieces it produces each year. The company also used paper that contained 72% recycled content for the DVD inserts, and that too will be a standard. Green MeetingsUniversal now is turning its eye to creating a better packaging option to replace the Amaray DVD plastic case. It's a daunting challenge, because the case provides protection, it offers a good-sized facing for brand display (and shrinkage resistance), and it's cheap. But its carbon footprint is too large to survive for long. "It's our struggle, and we need alternatives," she says. "We have to work with our suppliers to create a better mousetrap." Retailers, too, are taking steps to green up their presentations. But the ability to execute these programs, as with many corporate-driven directives, is critical. Home Depot, for instance, has developed an "Eco Option" program that labels each product's environmental benefits, and it promotes these lines in the store with merchandising and signage. But the in-store efforts could use a boost, says Steve Belletire, associate professor of industrial design at Southern Illinois University in Carbondale, Ill. "They're much better about promoting these products online and in print than they are in-store," he says. "There isn't much support material to explain carefully and clearly what these labels mean. It's much, much better at the Web site than at the point of sale. And bringing it to the store is key." REI, meanwhile, has made an impact by providing in-store displays to encourage customers to return used equipment and gear for recycling. "They are trying to educate customers via P-O-P about ways to improve the environment," he says. REI also offers a tagging system that presents both the pros and cons of specific merchandise's environmental impact. "It's not a one-sided approach. They are telling their customers that they respect the desire for information and will let the customer make the decision." Postive OutlookMore such efforts are sure to come, as marketers and retailers try to minimize their environmental impact--and market this approach to their customers for a benefit. "These materials are absolutely appropriate for any company, whether you're tied into this cause or not," says Keen's Kaplan. "The availability of products currently makes it more difficult, but that's going to change as the capabilities increase."Bishop agrees. "If it costs the same and is good for the environment, why wouldn't you do it?" she asks. "That's our challenge--to always keep it positively weighted and keep finding improvements."

Bringing Sustainability to Retail

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