Retail environmental challenges

However, when considering the sustainabUity of apparel retail, the most important aspect of the business model to consider is associated with how the retailer sources products. This activity has the most direct impact on the ability of the retailer to be sustainable. The retailer s products and supply chain are the most significant source of the environmental and social impacts. Up to two-thirds of a retailer s carbon footprint and up to 90% of its water footprint is created by its products and supply chain (WRAP, 2011). And as a retailer s supply chain may have more than 20 times more workers in it than in its retail operation, and often in countries where social issues may be significant, the supply chain is a major source of social and ethical challenges for the retailer. Therefore, the sourcing model for products and suppliers is a critical consideration in the development of a sustainability strategy. 

Like many other industries, the challenges facing the retail industry are associated with three environmental aspects. The first is the continued access to and availability of material resources used for products and the function of the business. These resources include the materials used to build stores and warehouses, the fuel needed by global logistic networks, and necessary utilities such as gas and water. Of specific importance are the resources used for extraction or production of raw materials such as cotton, polyester, and animal fibers, as well as the resources needed for conversion of those materials into finished product, such as spinning, weaving, and coloration. 

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