FROM THE DESK OF DEBORAH WEINSWIG

Conversations on Sustainability and Grocery at Groceryshop This week, I and other members of the Coresight Research team were at Groceryshop 2021. It was amazing to return to an in-person conference after so long attending digital-only events and it was inspiring to hear so much about the sustainability efforts being undertaken in the grocery industry. In this week’s note, I round up some of our sustainability insights from this event. Tackling Food Waste Waste is a huge issue in the food supply chain. The grocery sector accounted for more than $232 billion of food waste in 2020, or more than $1,660 per household, Coresight Research estimates from US government data. Looking at it another way, grocers generate 10.5 million tons of surplus food annually, of which nearly 35% is sent to landfills or incinerated. Among the conversations that I had at Groceryshop this week was a keynote “fireside chat” with Hanneke Faber, President of Foods and Refreshment at Unilever. It was fascinating to hear about Unilever’s sustainability goals and how they are treated in the same way as the company’s financial commitments. One of those goals is halving food waste in the company’s direct operations (spanning factory to shelf) by 2025. The company says that “manufacturing fixes and circular economy approaches” are helping it to achieve this. Unilever is also encouraging consumers to think again about leftover food (such as in high-profile ad campaigns), working on food-saving innovations and collaborating with external partners to reform the food system globally. Embedding Purpose Elsewhere at Groceryshop, we listened in on a conversation on the importance of defining purpose in marketing, between Sarah Engel, Chief Marketing Officer and Chief Peoples Officer at January Digital, and Dana Medema, VP and General Manager at Oral Care North America, Colgate-Palmolive. Engel and Medema emphasized the importance of embedding values and purpose throughout the organization. Engel pointed to the massive shift in consumers looking for purpose—for attachment to something bigger than the self. She noted that consumers are four to six times more likely to purchase from purpose-driven companies, according to a 2020 study. She recommended that brands and retailers should “Determine what matters to your customers, and not with one survey or the last customer conversation. Use social listening, many surveys, look for sentiment across a constant loop of communication.” Addressing ESG Finally, we were interested to hear recommendations on how retail companies can implement environmental, social and governance (ESG) strategies, from Alanna Fishman, Managing Director of Corporate Governance and Activism at FTI Consulting, and Jessica Edelman, VP of Corporate Affairs at Mars Wrigley North America. Fishman and Edelman advised that companies should just launch into their strategy: They can assess where their company is and where it wants to go and identify the gap. Edelman suggested, “Bite off small pieces of ESG; there is real long-term value creation—both financial materiality and social/societal materiality.” Fishman and Edelman addressed many of the topics covered by Coresight Research’s EnCORE framework for sustainability in retail. As we have recommended previously, retail companies uncertain as to their direction or end-point in ESG must be prepared to take first steps—typically any action will be better than inaction. Coresight Research Recommendations Coresight Research’s recommendations for retailers seeking to become more sustainable include the following selected components:

• Learn: Understand one’s own operations, discover peer standards and know the wider sustainability context.
• Benchmark your enterprise: Find relevant peers, exchange learnings and goals. Determine best practices and copy.
• Build a plan: Conduct a sustainability assessment and internal review, and identify priorities, risks and opportunities.
• Be bold: Develop a sustainability plan that designates responsible departments, allocates funding, establishes a timeline, sets short- and long-term milestones, implements policies, and measures success.
• Track metrics: Use audit tools such as software and checklists to measure results against goals, and schedule regular audit team inspections and supplier audits.
• Revisit your plan and iterate. Sustainability is a journey. Achieve goals and make new ones.

Find all of our Groceryshop coverage here.

US RETAIL AND TECH HEADLINES

Albertsons Enters into Partnership with DoorDash (September 20) ProgressiveGrocer.com

• Albertsons has partnered with DoorDash as a part of the delivery service’s multimerchant offering, DoubleDash. The service allows consumers to combine their Albertsons purchase with a separate order from either a restaurant or another participating retailer in a single delivery, with no additional fees.
• DoorDash introduced DoubleDash in August 2021 and it is currently available at 7-Eleven, QuickChek, Walgreens, Wawa, local restaurants and DoorDash’s DashMart virtual convenience store. Albertsons is the first grocery retailer to pilot the DoubleDash service.

American Eagle Outfitters Launches Premium Jeans Brand AE77 (September 21) Yahoo.com

• American Eagle Outfitters has launched a premium denim brand for women and men named AE77. The brand has a focus on sustainability and uses bags made from 70% post-consumer plastic and sustainable wooden hangers in its outlets.
• The product range will focus on denim, but will also offer products made from Japanese selvedge cloth, recycled cashmere sweaters and beanies, sustainably sourced and natural cotton apparel, and vintage items.

Dick’s Sporting Goods Lands WNBA Deal (September 21) Company press release

• Dick’s Sporting Goods has been selected as the official sporting goods retail partner of the Women’s National Basketball Association (WNBA), making it the largest national retailer of WNBA merchandise. The retailer will launch multiple programs to inspire and connect with female athletes of all ages and aims to increase the visibility of the WNBA nationwide.
• As part of the deal, Dick’s Sporting Goods will stock a range of authentic WNBA sports apparel and equipment in select locations across the US—including all 12 WNBA markets—and the company’s e-commerce channels.

PetSmart Launches Online Pet Pharmacy Store (September 20) Company press release

• US-based pet specialty retailer PetSmart has launched an online pet pharmacy to provide online medication for cats, dogs and livestock.
• The online platform will allow customers to order pet medications prescribed by their veterinarian and products will be shipped directly to customers. The company is offering discounts and perks for new customers, including free shipping for orders above $49, until January 30, 2022.

Stitch Fix Announces Fourth-Quarter and Full-Year 2021 Results (September 21) Company press release

• Stitch Fix has reported $571.0 million in net revenues for its fourth quarter of fiscal 2021 (ended July 31, 2021), up 29.0% year over year. For the full year, the company reported net revenues of $2.1 billion, up 22.8% year over year—but registered a net loss of $8.9 million.
• During the quarter, the company witnessed an 18.0% year-over-year increase in the total number of active clients. Revenue growth was also driven by momentum in its women’s segment, rising demand in its children’s segment and continued growth in its freestyle channel.

EUROPE RETAIL AND TECH HEADLINES

Albert Heijn and BP Launch AH To Go Stores at BP Gas Stations (September 21) ESMMagazine.com

• Ahold Delhaize-owned Albert Heijn, the largest supermarket chain in the Netherlands, and energy giant BP will open over 100 AH To Go stores in gas stations across the country by the end of 2022, following a successful trial.
• Albert Heijn will open 15 of the stores by the end of the year, followed by 80 more in 2022. The AH To Go format offers a variety of freshly prepared food and drinks for customers on the road.

Aldi UK Trials Checkout-Free Technology (September 20) Independent.co.uk

• Germany-based discount supermarket chain Aldi is trialing its first checkout-free technology in London, allowing shoppers to exit the store without queuing at checkout. Aldi follows Amazon’s use of similar technology in its London stores.
• On entering the store, customers will scan a smartphone app. They will then be able to pick up products around the store, which will be detected by in-store technology/ Customers will be charged accordingly on exit.

E-Commerce Technology Company Mirakl Raises $555 Million in Funding (September 21) Retuers.com

• Mirakl, a cloud-based e-commerce software startup, has raised $555 million in funding and is now valued at $3.5 billion. The funding round was led by the private equity firm Silver Lake.
• Mirakl’s platform allows companies to sell items, as well as curate and sell other brands’ assortments by linking with other e-commerce platforms, such as Shopify. The company stated that the funding will be used to expand its customer support, engineer base and third-party seller ecosystem, as well as to increase its global footprint.

Marks & Spencer To Pay Its Small Food Suppliers Within a Week (September 21) GroceryGazette.co.uk

• Marks & Spencer (M&S), a UK-based multinational retailer offering clothing, food and home items, has announced that it will pay smaller food suppliers within seven days, commencing on October 1, 2021.
• M&S Commercial Director George Wright stated that more than one-third of the company’s food assortment is sourced from small suppliers and that the move would make a significant difference to them and their employees. The company stated that it wants to promote its relationships with these suppliers as they help bring in new concepts and products to the market.

Yoox Net-A-Porter Opens New Logistics Hub in Milan (September 21) FashionNetwork.com

• Yoox Net-A-Porter, an Italian online fashion retailer, has opened a new distribution center in Landriano, Milan. The location is the group’s most significant in Italy in the last 20 years and is a vital component in its long-term vision, according to the company.
• The €47 million ($55 million) location spans approximately 581,000 square feet and will serve as a global distribution center. It will also feature a digital production hub that will focus on “creative innovation and the creation of visual content for the Italian and global luxury brands” the company sells.

ASIA RETAIL AND TECH HEADLINES

Alibaba’s Tmall Preps for the Upcoming Singles’ Day Festival (September 21) RetailAsia.net

• Alibaba’s marketplace Tmall has opened registration for merchants and is overhauling its luxury retail platform ahead of Singles’ Day, the largest global shopping festival in November 2021. New merchants will have two sales windows: November 1–3 and November 11.
• Tmall has also upgraded its Luxury Pavilion for luxury brands and retailers, adding shopper-friendly initiatives such as dedicated tabs for after-sales services and members-only perks.

Dada Group Introduces Smart Delivery SaaS System (September 20) RetailinAsia.com

• Dada Group, a China-based local on-demand delivery and retail platform, has launched an open digital logistics software-as-a-service (SaaS) platform, Dada Smart Delivery The platform aims to improve delivery and management efficiency with integrated delivery solutions, including applications for merchants, operations platforms and riders.
• Dada Smart Delivery has established strong partnerships with retail brands and delivery service providers including Liansheng Group, JD Liquor World and Seven Fresh Supermarket.

Metaphor Launches Global E-Commerce Platform “Maison Metaphore” (September 21) InsideRetail.asia

• Japanese fashion brand Metaphor has launched a global e-commerce platform under the name “Maison Metaphore.” The platform offers free shipping worldwide and is currently available in English, Japanese and Simplified Chinese.
• The website features Metaphor’s entire range of apparel for women and men, including its latest fall/winter 2021 collection. The company’s Founder, Kento Fukatsu, stated “Just like a metaphor, the concept behind Maison Metaphore is to convey our evolving world through innovative, groundbreaking fashion.”

Mochi Shoes Unveils Sustainable Footwear Collection “ECoz” (September 22) In.FashionNetwork.com

• Mochi, a sub-brand of Indian footwear retailer Metro Shoes has introduced a new sustainable shoe collection named “ECoz,” which is made from recycled plastic. The company states that the collection is made by converting discarded plastic bottles into recycled yarn, which it transforms into fabrics to manufacture shoes.
• The ECoz collection starts from ₹2,890 ($39.2) and will be available on leading e-commerce platforms and in more than 100 stores across India.

Myntra Plans To Create 11,000 Seasonal Jobs Ahead of the Festive Season (September 22) ETRetail.com

• Myntra, Walmart-owned Flipkart’s fashion platform, has announced plans to create 11,000 seasonal jobs ahead of the upcoming festive season in India, aiming to ramp up its customer support and supply chain, including last-mile delivery.
• According to Myntra’s CEO, Amar Nagaram, the hiring drive for on-ground staff and customer support during the festive season is the largest the company has ever seen, representing an increase of 57% from its 7,000 hires last year. The company also plans to incentivize its frontline workforce with perks, such as attendance bonuses.