The Times, May 2010
The supermarket sector was one of the first to start taking sustainability seriously. It was some years ago that the ‘big four’ (Asda, Morrisons, Sainsbury’s, and Tesco), began to realise that their actions and approach in this area were going to become a core part of their offer to consumers and started trading barbs over ethical credentials. This means that they have all had some time to sort out their strategy and start putting it in place.
Consumers’ overall impressions of the sector bear this out. In this month’s exclusive Concerned Consumer Index survey on the supermarket sector, conducted by Populus for the Times, we find that although it’s still a minority, the number of consumers that think the sector is doing enough to tackle social and environmental issues has been rising steadily over the past three years and now stands at 44%. This is significantly higher than other sectors. The efforts have been noted.
The relatively established nature of the supermarkets’ activity - and the fact that the big players have all adopted somewhat different approaches - makes it a particularly interesting sector to consider in terms of business strategy in the sustainability arena. We can begin to evaluate the relative success of different approaches. And given that, in this month’s survey, over 50% of consumers say they would consider moving to another supermarket if they were particularly impressed by its social and environmental performance, it’s clear that getting this right really matters.
Tesco’s biggest move has been on carbon. It has proclaimed its intention to put a carbon label on every one of its own label products and has included them on many items already. Interestingly, WalMart, over in the US, seems to be following suit.
This is leadership activity. It’s a big bold claim that goes above and beyond its competitors. And it could lead to real change throughout the supply chain. All of which sounds great, right? However, consumers in this month’s survey rate both Sainsbury’s and M&S higher on how green they are. Perhaps unsurprising when we note that only 7% say a commitment to being carbon neutral would be the most likely factor to make them actively choose to shop at a particular supermarket. Consumers’ knowledge of all things carbon is still nascent, yet the knowhow needed to understand and make sense of carbon labels is incredibly advanced. So, arguably, Tesco is too far ahead of its consumers on an issue that can still seem obscure. It has failed to carry its consumers with it in its march towards a more sustainable future.
Sainsbury’s makes an interesting comparison point. Rather than taking one big leadership stance, Sainsbury’s have been continually addressing a number of issues, like fair trade, which do seem to really fit with consumers’ interests. 23% say it’s this that would make them most likely to choose to shop somewhere. And the areas Sainsbury’s chooses to pursue are easy to follow and understand - and evident to anyone walking into the store.
As Ben Eavis, Corporate Responsibility and Ethical Trading Manager at Sainsbury’s, says “Our customers expect us to take sustainability seriously, so it is important for us to find ways of communicating the work we are doing in a way that everyone can understand.”
This is why we have invested in becoming the world’s largest Fairtrade retailer. Whilst customers might not understand all of the specifics, the Fairtrade brand is an excellent shorthand for good practice, that is widely recognised, with associated values that are easily understood.”
Sainsbury’s appears to be doing a better job of taking its consumers with it on its journey into the future. And because the strategy runs a gamut of issues, it’s easy for the messages to seem fresh, and their cumulative effect on the perception of levels of activity and intent is compelling.
What Sainsbury’s have, however, perhaps failed to do is to wrap all the activity into one easily identifiable over-arching message or statement of intent. Consumers struggle to express exactly what, when it comes to sustainability, Sainsbury’s is all about.
Here, of course, is where we turn to M&S. It has tied all of its activity together into one clear message of change, Plan A. And consumers do see M&S as a leader when it comes to being ‘green’. But even M&S, with a comprehensive plan, has been unable to differentiate itself on all the specific issues which matter to consumers, despite achieving a leading ranking in seven of the 11 issues in our survey. Recognition of the scale of the challenge is certainly something that Mike Barry, Head of Sustainable Business at M&S recognises,
“Plan A is trying to address every issue and being top of class in every area with consumers is a big ask. But, just because it’s difficult isn’t going to dampen our commitment. That’s why we’ve committed to become the world’s most sustainable retailer by 2015.”
So, while different supermarkets score in different areas, none have managed to piece all the bits of the puzzle together. To lead, but in a way that takes people along for the ride and makes them feel involved, rather than leaving them behind. To address the wide range of social and environmental issues which are so relevant to the sector, rather than focusing in one narrow area. To do so in a way that’s there for anyone walking into the store to see - and understand. And to pull this all together to create a brand-centric vision for a more sustainable future that we can all share. This is the real challenge - for supermarkets and for everyone else.
