'Green' a force at store level - Retailing & The Environment

Discount Store News, March 18, 1991

|Green' A Force At Store Level

The explosion behind the environmental revolution of the 1990s was sparked by consumers and--most aggressively--by their children.

Because of this, store level commitment by retailers can have a tremendous impact on how shoppers view their neighborhood discounter. While headquarters environmental policies are important, the retailer's message to the consumer touches her when she finds recycled paper notepads on the shelves, notices whether she gets plastic or paper bags at checkout, and learns that the store will safely dispose of her used motor oil.

The store level efforts being made by retailers vary, but generally fall into one or more of several categories:

* Researching, stocking and flagging environmentally improved product alternatives, and promoting these alternative goods in advertising; * Partially or fully subsidizing reusable fabric shopping bags and/or providing a place where consumers can deposit their plastic or paper shopping bags to be recycled; * Offering to take back a wide range of products and packages for recycling such as car batteries, motor oil, aluminum cans, paper and glass; * Spearheading or becoming involved in community environmental efforts like tree planting, clean-up campaigns and Earth Day; * Providing literature on the environment, recycling, and related topics; * Recycling wastes generated in backroom store services like corrugated cardboard; * Fundraising, or making donations to local environmental organizations.

While retailers are proactive in recycling and environmental efforts, one discount store executive, who asked to remain anonymous, summed up the sentiments of many industry members: "There are pros and cons to becoming a depository for anything. As retailers, we're not in the business to be recyclers. We are doing it as an interim step until the municipalities come on stream. I personally feel that curbside pick up will ultimately be the most efficient way to handle the recycling aspect of the environmental movement."

Regardless of the size of the chain, some discounters, like Kmart, encourage stores to tailor their environmental programs to the needs of their communities. Others, like Target and Pamida, have instituted chainwide programs.

Frank Schlosser, president of the 176-unit Pamida chain, said the company is investigating new programs and services to help customers with environmental issues. Voicing the sentiments of all retailers interviewed, he explained, "We can't afford to lose money, but we do hope to break even."

Pamida is currently testing a plastic bag recycling program, and will decide in about two weeks whether it will become a chainwide program. One test that just recently proved to be worthy of rollout is the sale of 5-quart jugs for 95 cents. "The customer returns it filled with old motor oil and we'll dispose of it," Schlosser explained.

Pamida stores sell reusable cloth bags at cost--$2.99--and have found that response is mixed. "In some areas it's doing very well; in others, not as well," Schlosser said.

The chain identifies environmentally safe products with green tags, a decision which requires Pamida and others to do extensive research.

"We are being very, very cautious. It's up to us to look at the product ourselves to decide whether it is worthy of a green tag," he added.

Wal-Mart, which has been flagging environmental products for a little over a year, is currently updating the products it will stand behind as environmentally safe, according to Jill Arbuthnot, an environmental marketing assistant for Wal-Mart.

Headquarters was flooded with responses to a letter sent by Bill Fields, executive vice president, merchandise and sales, last August, asking vendors to make improvements in the environmental aspects of their products.

"The new flags are being sent to the stores now . . . Stores will have over 200 flagged items now; a year ago there were less than half that number," said Arbuthnot.

After closer examination, some of the products originally flagged did not meet Wal-Mart guidelines and no longer have flags, she noted.

Kmart had begun signing environmental items last year too, but is now conducting a study with Wayne State University to select items worthy of being called safe.

"The initial set was developed with vendors," said Ed Powers, director of government operations at Kmart, "but we decided we really needed a third party. We selected high-volume, high-use products to be evaluated. Results should begin to come in within the next 30 days."

While "green signing" is one method shared by a number of chains, others are employing unique methods to help not only the environment, but the community as well.

Clover Stores, the Philadelphia-based regional discounter, has found a local company that is turning the plastic bags Clover stores collect into everything from picnic tables to boat docks.

The manufacturer, Riverhead Milling, has found a way to blend recycled thermoplastics with wood fiber to produce a wood product called Rivenite that can be sawed, planed, and used like wood.