For our Retail Insight this month, Simon Layton, Centre Director for Trafford Centre takes some time out of his day job as he puts conscious consumerism and the environmental change in retail under the microscope.
What does the future of retail look like in a climate of conscious consumerism and environmental urgency? The operation, management and design of shopping centres have never been so intensely in the spotlight.
Sustainability in retail involves a comprehensive approach to minimising carbon emissions and promoting ethical practices, while ensuring long-term viability. To this end, leading retail and leisure destinations need to become champions of sustainability and innovation to continue evolving in line with customer habits.
Shopping centres cover vast areas and house a diverse range of stores, restaurants and entertainment options. Given the scale, shopping centres play a critical role in shaping the retail landscape and must lead by example when it comes to sustainability. By integrating sustainable design, energy-efficient systems and environmentally friendly practices, shopping centres can set the standard for the entire industry.
We all know that shoppers are savvy, so while the cost-of-living crisis and inflation rates are not seeing positive changes, consumers are still willing to spend more on products and in stores and shopping centres that reflect their sustainable values. In fact, a recent study by PwC showed that consumers are willing to spend 9.7 per cent more on sustainably produced or sourced products.
Sustainability has certainly become a buzzword in the retail industry, with many brands and shopping centres using it as a selling point. However, despite the widespread discussion, few are truly taking meaningful action or putting concrete measures into place.
Shopping centres must integrate Environmental, Social and Governance (ESG) plans into every facet of their operations, from management practices to daily functions. Consumers are not only seeking quality products and services, but also want to engage with businesses that align with their values. By prioritising sustainability, social responsibility and ethical governance, shopping centres can enhance the overall customer experience, foster loyalty and attract more socially conscious shoppers.
Trafford Centre’s ESG strategy took 18 months to develop. It is a detailed and thorough policy focused on achieving widespread positive environmental and social change, bringing colleagues, tenants and the local community together.
By embracing change and the challenges associated with change, shopping centres can redefine themselves as environmental collaborators, setting down the building blocks for generations to come.”
The brand’s pioneering ESG programme, called ‘For Our Future’, has seen the centre reduce the direct greenhouse gas emissions of the spaces it controls and aims to achieve Net Zero Carbon in Scope 1 and Scope 2 emissions by 2030. Added to that, Trafford Centre has just been awarded a Gold ModeScore rating for its commitment to accessible and sustainable travel for all who visit and work at the centre, which is an industry first for such a large-scale retail destination.
Shopping centres need to collectively set the bar high by integrating cutting-edge technologies to reduce greenhouse gas emissions, energy consumption and waste. Like so many high street retailers, shopping centres are taking action, upgrading energy efficiency through the installation of solar power, LED lighting and upgrading heating and ventilation systems.
Green lease schemes are a good place to start too. The initiative aims to integrate environmental considerations into tenant agreements, promoting sustainable practices throughout the shopping centre. These are all measures to reduce carbon footprint, while creating inviting spaces for tenants and visitors.
It was recently announced that 2024 was the fourth hottest year on record for UK, so as we continue to face hotter, dryer climates and less predictable rainfall, smart water-saving solutions and management need to be incorporated into centres’ ESG strategies. Waste management must also be addressed through robust recycling schemes.
By engaging local communities and tapping into collective intelligence, centres can better prioritise and facilitate sustainable change. For example, by hosting workshops and educational campaigns, centres can inspire their tenants and visitors alike.
Retailers are increasingly looking for commercial space that matches their own sustainable goals. It is inevitable then, that shopping centres with green credentials are winning in the race to attract the most desirable tenants, which obviously has mutual benefits.
Environmental consciousness is at the forefront of everybody’s minds and shopping centres need to align with global sustainable goals. The concept of ESG is becoming a ‘must-have’ rather than a ‘nice-to-have’. In fact it has become a matter of corporate responsibility. Investors and consumers are placing growing pressure on businesses to adopt eco-friendly practices across the board.
By embracing change and the challenges associated with change, shopping centres can redefine themselves as environmental collaborators, setting down the building blocks for generations to come.
