12/5/2024

The business case for embracing sustainability in convenience retailing

Implementing sustainability does not require a complete business overhaul.

As global attention sharpens on the climate crisis, recent discussions at the COP29 Summit have underscored an alarming reality: progress toward mitigating climate change is inadequate. The pressing need for action highlights the role every industry, including convenience retailing, can play in addressing sustainability challenges.

Sustainability goes far beyond recycling initiatives—it encompasses a broad spectrum of priorities, including clean water, clean air, and community involvement. Central to this vision are the United Nations’ 17 Sustainable Development Goals (SDGs), which offer a framework for achieving global sustainability by 2030. For more on these goals, explore the interactive overview at United Nations SDGs.

Why should convenience retailers care about sustainability?

The pivotal question for convenience retailers, particularly small businesses, is: How can we contribute? More importantly, does sustainability make economic sense for us?

A study by NACS and the Coca-Cola Retailing Research Council explored the relationship between sustainable practices and customer engagement in convenience stores. Findings indicate that sustainable business practices positively influence customer satisfaction and retention. Customers are more loyal to stores that demonstrate a commitment to sustainability, making it an essential component of modern retail strategies.

How convenience retailers can embrace sustainability

Implementing sustainability does not require a complete business overhaul. Small, actionable steps can make a significant impact, both environmentally and economically:

1. Tackling food waste

If your store offers food service, consider managing surplus food through apps like Too Good To Go. This app connects local customers with discounted end-of-day items, reducing food waste while attracting new customers. Alternatively, donate leftover food to a food bank, supporting UN SDG #2: Zero Hunger.

2. Switching to sustainable packaging

Evaluate your packaging materials. Are your bags recyclable? Are you using paper straws and food containers? These small changes align with UN SDG #12: Responsible Consumption and Production and demonstrate your commitment to eco-friendly practices.

3. Energy efficiency initiatives

Install LED lighting in your store to reduce energy consumption. Many governments and utility providers offer grants or subsidies to offset the cost of switching to energy-efficient solutions. This initiative aligns with UN SDG #13: Climate Action while reducing operational costs.

4. Leveraging technology for sustainability

Adopt digital solutions to reduce paper usage, such as e-receipts or digital menu boards. Not only do these changes save resources (UN SDG #9: Foster Innovation), but they also modernize your store experience.

a Circle K Employee hands over a Surprise bag

Communicating your sustainability efforts

Customers notice sustainable initiatives, but clear communication amplifies their impact. Use social media and in-store signage to highlight your efforts, such as waste reduction programs, energy-efficient upgrades, or partnerships with local charities. Engaging customers on these topics enhances their perception of your store, fostering loyalty and encouraging word-of-mouth advocacy.

The business case for sustainability

Sustainability is not just a moral imperative; it is a sound business strategy. As research shows, customers value environmentally conscious practices and are more likely to support businesses that prioritize them. By adopting even one element of the UN SDGs, convenience retailers can:

Strengthen community relationships.
Attract and retain loyal customers.
Reduce operating costs through efficiency.
Contribute to a global sustainability movement.

A call to action for 2025

Let’s make 2025 a milestone year for sustainability in convenience retailing. Imagine the collective impact if every store in the industry implemented one small, meaningful change. Together, we can positively contribute to the UN’s sustainability goals, enhance customer loyalty, and position our businesses for long-term success.

Sustainability is no longer a choice—it’s a business necessity. As an industry, let’s lead by example, proving that convenience and sustainability can go hand in hand.