The crisis in the global economy will not derail grocery retailers’ sustainability agenda – although it might slow down the trend towards more ethical and environmentally friendly products and policies.
That was one message emerging from today’s IGD convention – entitled The World Turned Upside Down – held at London’s Royal Lancaster Hotel.
IGD chief executive Joanne Denney-Finch said: “Will we as consumers go back to the basics of price and value, or stay true to our new values? We will go back to value but we will not abandon [ethical values] overnight.
“But if you aspire to shop ethically and see price as a barrier, you don’t jump on board.”
Shoppers already committed to buying more ethical and environmentally friendly products were also likely to shop around more, she added.
A poll of the convention’s 600 delegates – drawn from the UK’s grocery retail sector and its suppliers – found 48% saying sustainability remained “a long-term commitment, regardless of the economy.”
Sainsbury’s chief executive Justin King said it was inevitable that sustainability would slip down the agenda.
But he added: “It’s not a short-term marketing idea. It can give you a real competitive advantage in the long-term.”
King said customers would become more questioning of supermarkets’ green and ethical claims, however.
“Customers, frankly, can sniff bullshit. But there’s no indication people are shifting back. Will the momentum slow? Yes.”
He added that as the economy emerged from the slowdown customers would reward companies that remained true to their principles.
King said: “People will be more challenging about whether sustainable claims are real. They will be much more challenging of so-called greenwash. A lot of the greenwash will be washed away.”
Tesco executive director Lucy Neville-Rolfe said: “Some say customers are more interested in saving money than going green. But our customers are saying they want both.”
Her company’s green credentials were the fourth most important reason cited by shoppers for visiting its stores but, she warned, ”going green has to be affordable”.
