Wal-Mart tells vendors to supply environmentally safe merchandise - discount store chain will use special signage to indicate environmentally safe products

Discount Store News, Sept 4, 1989

Wal-Mart Tells Vendors to Supply Environmentally Safe Merchandise

BENTONVILLE, Ark. -- Wal-Mart has become the first major retailer to publicly identify itself with the nation's growing concern over the environment by "challenging" its suppliers to provide environmentally safe products.

As the nation's third-largest retailer, Wal-Mart's action could eventually have a major impact on how manufacturers produce and package their goods. Wal-Mart's challenge, announced in full-page ads in The Wall Street Journal and USA Today, is seen as boosting the swelling effort among food and general merchandise manufacturers to provide environmentally sound products in recyclable or biodegradable packaging.

In the ad, Wal-Mart said it would "highlight the improvements you make with special signing in our stores alongside your products. Together, we'll provide our customers with the choice to purchase environmentally improved products."

The discounter, however, didn't plan to drop any products because of environmental considerations from the mix in either the Wal-Mart or Sam's Wholesale Club stores, a company spokeswoman told DSN.

The special notices will be shelf tags and other "highlight" signs, the spokeswoman added, but no date was given for the rollout of the signage.

Wal-Mart's environmental awareness program is similar to its "Buy American" effort to promote the use of merchandise manufactured in the United States. The company has reaped heaps of positive publicity from that ongoing campaign, enhancing its perception as a socially conscious retailer and creating jobs in many of its prime markets. Other merchants have been seen also-rans, claiming identical efforts to purchase more American-made goods but failing to derive the same consumer recognition.

A similar situation could occur in Wal-Mart's environmental drive. The retailer has again staked out a position as a socially responsible company, while competitors are reduced to playing follow-the-leader in their concern for the environment.

Before placing the ads in the two newspapers--which have the largest business and general readership, respectively, in the nation--the company sent letters to its suppliers calling on them to house their products in environmentally harmless or recyclable packaging. The company received a positive response from many vendors, the spokeswoman said.

Wal-Mart undertook its campaign in response to customer letters voicing distress about the state of the environment, the spokeswoman said. The ad noted this impetus by stating: "Our customers are concerned about the quality of our land, air and water, and want the opportunity to do something positive. We believe it is our responsibility to step up to their challenge."

The ad goes on to declare that "we are all linked to our environment by the products we manufacture, sell and consume. We encourage you, our manufacturers, to look for ways to provide Wal-Mart and our customers with more merchandise and packaging that is better for the environment in manufacturing, use and disposal."

Wal-Mart calls its effort "a first step," adding: "We're convinced that we can begin to make a difference."

The company's timing is opportune, coming as the "Green Revolution" gathers strength and a growing number of manufacturers are starting to use biodegradable or recyclable packaging. More and more communities, meanwhile, are requiring households to separate garbage into reusable and non-recyclable refuse.

Also, one recent consumer survey reported that more than half the respondents didn't buy a product because of environmental concerns, while about three-quarters said a company's environmental reputation influenced their purchasing decisions.

The survey also indicated that consumers were ready to pay more for environmentally sound products.