US retail chain Walmart recently developed a concept store that was half lit by daylight. In that store, in the daylit areas, sales per square foot grew significantly higher.
As consumers grow more environnmentally conscious and designers look to natural fabrics and sustainable practices, what about our retail spaces?
The Green Building Council of Australia (GBCA) states that today, there are currently 1000 certified Green Star projects taking place across the country – in retail, there is just one.
Outdoor clothing company Kathmandu pledged its alliance with the GBCA in January 2014 and has now opened its doors to the first Green Star accredited store at Melbourne's Galleria.
The launch corresponds with a range of Kathmandu's company goals including reducing carbon emissions by 20% by 2020 and a bid to achieve zero waste to landfill by 2018.
With so many fashion designers and retailers such as KITX, Cotton On and Patagonia jumping on board with sustainability and corporate responsibilty to the environment, the store launch marks the only partnership between the GBCA and a major apparel company.
GBCA CEO Romilly Madew believes while the bulk of Green Star projects are taking place in other sectors in Australia, retail has taken its time to follow suit.
“While the commercial office sector has long embraced sustainability – and around a quarter of all CBD office space in Australia is now Green Star certified – the retail sector has been slower on the sustainability journey.”
The industry might have been slow on the uptake, but Madew believes that its now on the cusp of a major shift towards seeking accreditaition from the body.
“Undoubtedly, just as we have seen with the office market, a number of drivers will push the retail market forward. These include competition within the retail sector as leadership shown by retailers such as Kathmandu will spur others on; investors questioning retail owners more on their ESG credentials; and consumers becoming more discering and questioning of products and services a Green Star rating provides the positive proof that a retailer is actually green, not simply engaging in green wash.”
So what does it mean to become Green Star accredited?
According to Madew, the system is a globally recognised rating system that aims to transform the built enviornment by reducing the impact of climate change, enhancing health and quality of life, restoring and protecting our planet's biodiversity and ecosystems, ensuring ongoing optimum operational performance and contributing to market transformation and sustainable economy.
“Projects are assessed based on the design, construction, interiors and operational performance of new buildings, refurbishments and existing buildings as well as large-scale community.”
Kathmandu sustainability manager Tim Loftus details the key features of its Galleria store that has made it a pioneer in sustainable retail.
“The store was designed using a range of sustainability features to meet the Green Star submission standards and enhance the indoor enviornmental quality for customers and staff. The store is currently in the final stages of submission for the five star Green Star rating.”
According to Loftus the store has adopted a strong focus on fixtures and fitout materials. This includes: timber flooring certified by the Forest Stewardship Council (FSC); all paints, glues and finishings selected based on environmental certifications; PVC free piping; LED lighting fixtures; furniture and equipment selected from Kathmandu's Sustainable Procurement guideline; and glass plaques outlining the company's strategy to educate consumers.
Aside from a corporate commitment to reducing waste and carbon emissions, Madew says that research conducted by the World Green Building Council (WGBC) of which it is part of, suggests that customers are attracted to shopping in eco-centric enviornments.
“Just this week the WGBC released its new report: Health, Wellbeing and Productivity in Retail: The Impact of Green Buildings on People and Profit, and finds most retailers are currently missing a key opportunity to better understand how the physical retail environment can affect staff and customers – including the retail experience – and therefore the impact on overall business performance.”
She touches upon major retail chains in the US like Walmart who have adopted this strategy to boost profits whilst adhering to its codes of ethical and sustainable conduct.
“A raft of evidence now shows that greener, healthier retail stores – those with good levels of daylight, fresh air and greenery – are more attractive to consumers and more profitable for retailers. The WGBC report also finds customers are likely to buy more merchandise in stores with natural surroundings. When shown images of retail spaces, customers rate those with greenery as friendlier, say they would stay longer and visit more frequently, and they would be willing to pay a higher price for the same product when pictured in a more natural setting.”
For companies like Kathmandu, who were forced to slash jobs at its head office, this could be good news for the interest of its corporate responsibility and its profit margins.
In the past 12 months it's also faced other financial adversities including a hostile takeover bid from stakeholder Briscoe Group and the closure of stores in the UK as a result of declining profits.
Loftus believes that it's time for the company and other retailers to forge partnerships with organisations such as the GBCA to cater to customers and its own staff.
“Partnering with the GBCA has provided us wih the tools to change the way we build and operate our stores more sustainably. We also wanted to initiate change to promote more conscious ways of operating a business. The GBCA are very supportive for us to achieve the five star Green Star rating as it will set a high standard for other retailers.”
Kathmandu's mission doesn't stop at its Galleria flagship store.
The company has revealed it will continue to grow its partnership with the GBCA to produce an industry first multiple store accreditation standard.
The biggest bombshell drops with the news that Kathmandu will relocate its Melbourne distribution centre and Christchurch head office into five star Green Star rated buildings.
And as Kathmandu offers itself up as an industry leader in terms of transforming its retail spaces and headquarters into greener enviornments, there are other innovators in the sector who could be well on their way to earning accreditation from GBCA.
Fellow outdoor apparel company Patagonia currently operates the largest repair facility in North America for damaged or weathered garments purchased from its stores.
The US based company is now looking to bring the service to its Australian stores in a bid to reduce waste generated by the clothing industry.
Looking to the future, Madew believes that there is real value in thinking outside the square of traditional retail spaces to adopt new ways to think sustainably.
“We know, from our long work in other retail sectors of the market, that there is a real early adopter advantage. We encourage retailers to talk to us, do their research, check out what the leaders are doing internationally as there is some transformational examples. We can help them scale up their commitment to sustainability.”