Lai 2010

Green Retailing: Factors for Success
Author(s): Kee-hung Lai, T.C.E. Cheng and Ailie K.Y. Tang

Source: California Management Review, Vol. 52, No. 2 (Winter 2010), pp. 6-31
Published by: University of California Press
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W i n t e r 2 0 1 0 | V o l . 5 2 , N o . 2 | R E P R I N T S E R I E S
California
Management Review
Green Retailing:
Factors for Success
Kee-hung Lai
T.C.E. Cheng
Ailie K.Y. Tang
© 2010 by The Regents of

the University of California
Green Retailing:
FACTORS FOR SUCCESS
Kee-hung Lai
T.C.E. Cheng
Ailie K.Y. Tang
T
he era of green retailing (GR) has come. While the philosophy
of environmental management—which helps firms reduce waste,
increase efficiency, cut costs, and protect against environmental
liabilities1—has been known to business for years, its benefits are
increasingly visible in the retail sector. Wal-Mart, for instance, estimates it could
save around 3,800 trees and 1,000 barrels of oil with an economic saving of $2.4
million by reducing unnecessary packaging of its private-label toy products.2
In addition, the firm has procured hybrid diesel-electric trucks and refrigerated
trucks that feature a small power unit for cooling, so the engine could be turned
off when the truck is stopped. The logistics network of Wal-Mart has achieved
roughly a 25% improvement in fuel efficiency, amounting to almost $75 million
in annual savings and a reduction of 400,000 tons of carbon dioxide emissions
per year.3
Retailers have traditionally been regarded merely as distributors of mer-
chandise, adding little value for consumers or suppliers. However, now they play
a significant role in various aspects of the value chain, such as offering more
services and a broader range of products to customers, setting product standards,
promoting products, and generating and disseminating information on con-
sumer tastes and behaviors in support of their suppliers’ response to customer
demand.4 Retailers are increasingly expected to mitigate environmental damage
and are urged by regulatory forces, customer expectations, as well as community
group pressures to embrace green practices for improving their value chains.
Meanwhile, there are increasing environmental regulations exerting greater
The authors are grateful to Sara Beckman and three anonymous reviewers for their constructive and
insightful comments on earlier versions of this article. This research was supported in part by the
Research Grants Council of Hong Kong (GRF 5434/08H) and The Hong Kong Polytechnic University
under a research studentship to Tang.
6 CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU
pressures on retailers to emphasize environmental protection in their operations.

For instance, New York Governor David Paterson signed legislation that requires
large retail stores to recycle plastic carry-out bags. Should they fail to comply,
the New York State Department of Environmental Conservation will penalize
them with a fine starting from January 2009.5 Non-compliance with environ-
mental regulations can be expensive. For example, in 2008, Home Depot agreed
to pay a $1.3 million penalty and implement a nationwide comprehensive, cor-
porate-wide program to prevent storm water pollution at each of its new store
to resolve alleged violations of the Clean Water Act at more than 30 construc-
tion sites in 28 states where new Home Depot stores were being built.6 A similar
consent decree was reached with Kmart. This retailer was sentenced to a fine of
$102,422 to settle self-disclosed violations of federal environmental regulations
discovered at 17 of its distribution centers in 13 states. The company reported
violations of clean water, hazardous waste, and emergency planning and pre-
paredness regulations to the U.S. Environmental Protection Agency.7
In addition to regulatory forces, community group pressures have fostered
the adoption of GR. B&Q, a British-based do-it-yourself retailer, was criticized by
non-governmental organizations (NGOs) for its sourcing of tropical hardwood
in the early 1990s. To resolve this crisis, B&Q shifted to purchase certified wood
conforming to the requirements and standards of the Forest Stewardship Coun-
cil (FSC), a non-profit organization devoted to encouraging responsible manage-
ment of the world’s forests.8
Retailers, on the other hand, are under the influence of consumers’
evolving preferences for environmentally friendly merchandise to adopt GR.
Environmentally conscious customers—who have at least some knowledge of,
and a willingness to buy, environmentally friendly products—represent 87% of
the adult population in the USA.9 Information Resources, Inc. found customers
are actually maintaining or increasing spending on green products despite the
economic downturn.10 On the other
hand, The Natural Marketing Insti- Kee-hung Lai is an Associate Professor at the Department
tute expected the green consumer of Logistics and Maritime Studies, The Hong Kong
Polytechnic University. <[email protected]>
marketplace to reach $845 million
by 2015.11 It is appealing to this large T.C.E. Cheng is Chair Professor of Management at the
Department of Logistics and Maritime Studies of The Hong
customer segment if environmental Kong Polytechnic University. <[email protected]>
attractions are developed in product/
Ailie K.Y. Tang is a doctoral student at the Department
service offerings. While the segment of Logistics and Maritime Studies, The Hong Kong
is expanding, consumers are increas- Polytechnic University. <[email protected]>
ing their expectations, requirements,
and standards in evaluating the green practices of retailers. As stated by Stuart
Rose, CEO of Marks & Spencer, “Customers care more than ever how products
are made.”12 This expanding customer segment is exerting greater influence
and driving retail chains to raise their environmental standard and quality.
An increasing number of retailers (e.g., The Body Shop, Carrefour Group, and
Metro Group) have emphasized protection of the natural environment as one
of their company missions.13 GR is set to be the way forward, as declared by Sir
Terry Leahy, Chief Executive of Tesco, “We Must Go Green.”14
CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 7
The benefits of GR are attractive to retailers seeking cost and service

improvements. Pressures from regulators, community groups, and customers
also prompt retailers to pursue green practices. However, there is no universally
accepted definition of GR despite the growing numbers of business articles and
publications on this important topic. Conducting a cursory search of business
articles published between May 2001 and June 2009 using ProQuest, a research
engine, we found different management issues associated with GR ranging from
green procurement, green product design, green store design, green transpor-
tation, green packaging, green technology investment, through to energy and
water conversation of retailers, and cooperation with suppliers, NGOs, and cus-
tomers for waste reduction (see Table 1). The lack of a consensual definition of
GR provides no clue for retailers to understand let alone implement GR, despite
increasing market expectations of environmental protection in the retail sector.
Existing environmental management studies have been confined to the
manufacturing context15 and various industries such as the pulp and paper
industry, furniture industry, and computer industry.16 Environmental research
dedicated to the retail sector is relatively scarce, although there were studies
sampling retailers as one of the study groups.17 Unequivocally, the role of retail-
ers as an intermediary between suppliers and customers in coordinating and fos-
tering green practices across their value chains has been largely ignored despite
the call for life-cycle consideration in all the stages of the value chain.18
There are plentiful studies in the environmental management and indus-
trial ecology literature covering a broad range of related topics on green prac-
tices. These include the adoption of the environmental management system19
and investigation of individual green practices such as eco-design, voluntary
environmental code, sustainable logistics, and green marketing.20 This study
focuses on examining the green practices in the retail sector with a systematic
analysis and categorization of these practices grounded in management theories.
Practitioners are keen on understanding how GR can be successfully
implemented. However, a similar GR program can end up with different results
in real life, as illustrated in the cases of Tesco and ParknShop, each being one of
the largest retailers in the UK and Hong Kong, respectively. In November 2007,
ParknShop put a halt on distributing free plastic bags to its customers. Shoppers
would instead be required to donate HK$0.2 (approximately US$0.025) for each
plastic bag demanded. Such a policy triggered a flood of customer complaints
against the retailer. ParknShop was criticized for a lack of transparency in the
use of the customer donation. Customers were skeptical as to whether the dona-
tion would be used to support the Hong Kong Community Chest (a local charity
organization) or environmental groups as promised by the retailer. There was
also criticism of a lack of consistency in policy implementation whereby custom-
ers were asked to donate in some outlets, while other stores continued to distrib-
ute plastic bags free-of-charge. Customers also lodged complaints that the policy
was implemented on short notice and they found it difficult to cope with the
change. Subsequently, ParknShop lifted the policy, aborting a well-intentioned
environmental campaign only five days after its launch.21
8 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU
TABLE 1. Review of Topics Related to Green Retailing Practices (from Business Articles
Published between May 2001 and June 2009) (continued on next two pages)
Publication Document Scope of Green

Authors Title Title Retailing Examined
Amanda B. Buildings A Closer Look at Green store design for energy conservation and
Piell (2009)a Green Retail Facilities green energy utilization
Marianne Chain Store Age The Future Looks Energy conservation and greenhouse gas
Wilson Green reduction
(2009)b
Marianne Chain Store Age The Power of Green Green store design for waste reduction, water
Wilson and energy conservation;
(2009)c Green energy utilization
Ike Wilson McClatchy- Green Retail Tips Waste reduction;

(2009)d Tribune Business Discussed Green store design for waste reduction, water
News and energy conservation;
Green design
Green human resource development
Chris H. The Business Coachella Valley Green store design for water and energy
Sieroty Press to Get First Green conservation
(2008)e Retail Centers
Katherine Chain Store Age Starbucks and REI Green store design for energy conservation
Field (2008)f Share Environmental
Commitment
Katherine Chain Store Age Sustainable Principles Green store design for waste reduction and
Field (2008)g Guide Building energy conservation
Development
Marianne Chain Store Age Focus on Solar Green store design with green energy utilization
Wilson Power
(2008)h
Marianne Chain Store Age Sustainability Green store design for energy conservation
Wilson Translates into
(2008)i Profitability
a. A.B. Piell, “A Closer Look at Green Retail Facilities,” Buildings, 103/6 (2009): 88.
b. M. Wilson, “The Future Looks Green,” Chain Store Age, 85/6 (2009): 12.
c. M. Wilson, “The Power of Green,” Chain Store Age, 85/6 (2009): 32.
d. I. Wilson, “Green Retail Tips Discussed,” April 22, 2009, McClatchy-Tribune Business News.
e. C.H. Sieroty, “Coachella Valley to Get First Green Retail Centers,” November 3, 2008, The Business Press.
f. K. Field, “Starbucks and REI Share Environmental Commitment,” Chain Store Age, 84/9 (2008): 19A.
g. K. Field, “Sustainable Principles Guide Building Development,” Chain Store Age, 84/9 (2008): 12A.
h. M. Wilson, “Focus on Solar Power,” Chain Store Age, 84/9 (2008): 20A.
i. M. Wilson, “Sustainability Translates into Profitability,” Chain Store Age, 84/9 (2008): 2A.
Published between May 2001 and June 2009) (continued from previous page)

Heather Business Week Carbon Confusion Supplier and NGO cooperation in carbon labeling
Green and
Kerry Capell
(2008)j
Marianne Chain Store Age Going Green Reducing energy consumption in stores and the
Wilson supply chain;
(2008)k Green packaging
Mike Duff Retailing Today Carefully Organizing Energy conservation;

(2007)l ‘Green’ Efforts Is Key Green procurement;
to Reaping Rewards
Considering customer feedback in waste
reduction
Bob Journal of Retail Green Retail: Green store design for energy conversation;
Thompson & Retailer Strategies Green energy utilization;
(2007)m Leisure Property for Surviving the
Sustainability Storm Green transportation
Erica L. Supply Chain The Greening of Green transportation;

Plambeck, Management Wal-Mart’s Supply Green packaging;
(2007)n Review Chain
Green product design;
Green procurement;
Cooperating with suppliers and nongovernmental
organizations
Anonymous Business Wire City of Miami and Green store design for waste reduction, water
(2007)o Staples to Break and energy conservation;
Ground on First Providing channels for customers to recycle
LEED-Registered products;
Green Retail Building
in City Investing in energy efficiency and renewable
energy;
Green procurement
Dees National Real Green Design Goes Green store design for waste reduction, water
Stribling Estate Investor Mainstream and energy conservation
(2007)p
j. H. Green and K. Capell, “Carbon Confusion: To help shoppers make green choices, companies are slapping carbon labels on products. But
even if the public can interpret the information, will it help reduce greenhouse gas emissions?” Business Week, 4075 (2008): 52.
k. M. Wilson, “Going Green,” Chain Store Age, 84/6 (2008): 12.
l. M. Duff, “Carefully Organizing ‘Green’ Efforts is Key to Reaping Rewards,” Retailing Today, 46/11 (2007): 3-4.
m. B. Thompson, “Green Retail: Retailer Strategies for Surviving the Sustainability Storm,” Journal of Retail & Leisure Property London, 6/4 (2007):
281-286.
n. E.L. Plambeck, “The Greening of Wal-Mart’s Supply Chain,” Supply Chain Management Review, 11/5 (July 2007): 18-25.
o. “City of Miami and Staples to Break Ground on First LEED-Registered Green Retail Building in City,” Business Wire, September 24, 2007.
p. D. Stribling, “Green Design Goes Mainstream,” National Real Estate Investor, 49/5, (2007): 43-46.
Published between May 2001 and June 2009) (continued from previous page)

Jen The Daily Record Carroll County to Green store design for waste reduction, water
Degregorio Get Mid-Atlantic and energy conservation
(2007)q Region’s First ‘Green’
Retail Center
Tim Craig Retailing Today Green Is the New Green building techniques;
(2007)r Black Green procurement;
Green products
Jenny Progressive Green Is the New Green store design for energy conservation
McTaggart Grocer Black Green packaging;
(2007)s
Green transportation;
Cooperating with suppliers and nongovernmental
organizations
Marianne Chain Store Age Sky Gardens Green store design for energy and water
Wilson conservation
(2006)t
Marianne Chain Store Age Going Green Gets Green store design for energy conservation
Wilson Easier
(2006)u
Barry Seifer Environmental Consumers and the Green Store design;

(2006)v Design + Future of Green Helping customers to conserve fuel
Construction Retail
Eric Brill and Environmental The Paradox Green store design for energy conservation and
Gary Saulson Design + of Green Retail waste reduction
(2005)w Construction
Alan Knight Consumer Policy Sustainable Green procurement;

(2004)x Review Consumption: The Green packaging;
Retailing Paradox
Green policy development
Anonymous Building Design & The Rewards of Green store design for energy conservation
(2001)y Construction Green Retailing
q. J. Degregorio, “Carroll County to Get Mid-Atlantics Region’s First ‘Green’ Retail Center,” The Daily Record, 1 (2007).
r. T. Craig, “Green is the New Black,” Retailing Today, 46/1 (2007): 8.
s. J. McTaggart, “Green is the New Black,” Progressive Grocer, 86/4 (2007): 18-20.
t. M. Wilson, “Sky Gardens,” Chain Store Age, 82/13 (2006): 118-119.
u. M. Wilson, “Going Green Gets Easier,” Chain Store Age, 82/1 (2006):112.
v. B. Seifer, “Consumers and the Future of Green Retail,” Environmental Design + Construction, 9/7 (2006): 51-52.
w. E. Brill and G. Saulson, “The Paradox of Green Retail,” Environmental Design + Construction, 8/6 (2005): 30-33.
x. A. Knight, “Sustainable Consumption: The Retailing Paradox,” Consumer Policy Review, 14/4 (2004): 113-115.
y. “The Rewards of Green Retailing,” Building Design & Construction , 42/5 (2001): 12-13.
In comparison, Tesco cut the number of plastic bags without adding a bag
tax or levying charges on the bags. They launched the Green Clubcard Point in
2006, through which customers collect points by reusing bags and redeem the
points for such things as gift vouchers, magazine subscriptions, and insurance.
This campaign allowed Tesco to save two billion plastic bags in about two years,
and the plastic bag usage by its customers was down 40% compared with the
same period two years before.22 These two cases highlight the performance con-
tingencies of retailers’ environmental efforts despite similar endeavors to pursue
GR.
Methodology
Following the guidelines on conducting case-based research,23 we took
the steps illustrated in Figure 1 to identify the different dimensions of GR and
examine the roles of retailers in greening the value chain.
We first established a preliminary framework grounded in the natural
resource-based view of the firm (NRBV) and Porter’s value chain to provide
theoretical guidance for our subsequent categoriza-
tion of GR practices. We then employed theoretical
FIGURE 1. Research Process sampling to select cases to examine the theoretical
issues of our research questions rather than using
statistical sampling, which is designed to be repre-
Establish a preliminary
sentative of a population.24 We sampled the retail-
framework for GR grounded in ers Wal-Mart, Carrefour, Tesco, Metro, Kroger,
NRBV and Porter’s value chain Target, Costco, and Sears25 for the following rea-
sons: they are leaders in a variety of operating for-
mats, including Apparel/Footwear Specialty, Cash
& Carry/Warehouse Club, Convenience/Forecourt
Perform theoretical sampling
Store, Discount Department Store, Discount Store,
Electronics Specialty, Home Improvement, Hyper-
market/Supercenter/Superstore, Supermarket,
Collect data through annual Non-Store, and Other Specialty;26 their opera-
reports/ environmental reports/ tions cover 64 countries in the world, which helps
official websites
enhance the generalizability of the findings of this
study;27 and they are all publicly listed compa-
Analyze data with open and nies, so the information gleaned from their official
axial coding for categorizing annual reports and web sites is expected to be true
green retailing practices to guard their corporate reputation. It is possible
that green practices are claimed for public relations
purposes. To reduce the threat of self-report bias,
Identify the green retailing we took further steps to ascertain validity. The
dimensions information we adopted must meet at least one of
the following criteria to ensure data integrity and
validity.
Precise Figures
We selected only information containing precise figures showing the
results of green practices by retailers. For example, Carrefour stated that “We
collect waste, such as neon tubing and cooking oil used at stores. 449,172 tons of
waste was recycled thanks to the implementation of waste sorting and recycling
at Group stores in 2007.”28 In contrast, Costco claimed that “We have an exten-
sive recycling program that includes the efficient and environmentally protective
recycling of cardboard and paper, photo lab silver, junk tires, and broken pal-
lets.”29 Due to the absence of exact figures in support of this claim by the latter,
this piece of information was taken out from our subsequent data analysis to
control for the potential bias problem.
Dates of Implementation
The exact date of implementing the green practices was provided. For
example, Target stated that “in 2006, we introduced a kid’s meal box in our Food
Avenue® restaurant at all Target stores that is made from 100 percent recycled
content, with a minimum of 40 percent post-consumer fiber.”30 In another piece
of information from Kroger, it was stated that “we are installing variable-speed
drives in air-handling fans and evaporative condenser fans that use a fraction of
the energy of older equipment.”31 In our data analysis, we excluded the latter
because it did not provide the implementation date.
Third-Party Data for Verification

We examined retailers’ green practices that can be validated, which
include the procurement of Marine Steward Council (MSC) and FSC certified
products, as well as partnerships with environmental groups and government
agencies. We verified the practices by checking the partner websites/business
presses/reports of environmental groups to ensure the validity of the data before
analysis. After information screening, we analyzed the data qualitatively using
the techniques of open and axial coding to categorize GR practices.32 Open cod-
ing is the process of identifying central concepts or categories and their proper-
ties, while axial coding is to relate categories to their sub-categories.33 Based on
the sub-categorization derived, we modified our preliminary framework and
identified the dimensions of GR.
Conceptualizing Green Retailing

The natural resource-based view of the firm (NRBV) stresses a firm’s rela-
tionship with the natural environment and highlights three strategic capabilities
of the firm, namely, pollution prevention, product stewardship, and sustainable devel-
opment. These strategic capabilities are built upon bundles of resources that are
rare, socially complex, and causally ambiguous. Green practices, involving these
resources and strategic capabilities, are valuable to firms in gaining sustainable
cost and service advantages.34
Reducing waste is fundamental to pollution prevention, which focuses on

minimizing waste in internal operations (e.g., the use of pollution control equip-
ment).35 In general, opportunities for waste reduction can be identified through
a life-cost analysis to determine ways for eliminating waste at all the stages of
the retail value chain, from raw materials acquisition through to waste reclama-
tion from customers.36 The concept of waste reduction is also central to product
stewardship, which entails integrating external stakeholders into product design
and process development for eliminating waste and reducing life-cycle envi-
ronmental costs such as greenhouse gas emissions. For example, the amount of
carbon dioxide emitted from containerboard packaging—throughout its produc-
tion, use, and disposal—is one of its life-cycle environmental costs.37
Hart asserted that “activities at every step of the value chain—from raw
materials access, through production processes, to disposition of used prod-
ucts—bring environmental impacts.”38 Consistently, Porter and van der Linde
considered pollution as a form of economic waste and pointed out that every
step of the value chain can damage the environment.39 As the NRBV suggests,
waste reduction in the value chain is helpful for firms in gaining competitive
advantage through cost saving.40 Relating the NRBV to Porter’s value chain,
we see that pollution prevention calls for waste reduction in the primary value
chain activities such as operations and logistics, which are the firm’s internal
practices; whereas product stewardship is oriented towards procurement, as well
as marketing and after-sales activities, involving cooperation with suppliers and
customers. The third strategic capability advocated in the NRBV, namely, sustain-
able development, demands firms to make a commitment and take a long-term
orientation towards reducing their environmental burden with a view to attain-
ing sustainable organizational growth and development. Supportive activities in
the value chain such as shared top management commitment to environmental
policy formulation, green technology development, and employee training on
environmental protection are necessary for nurturing organizational growth. As
seen in Table 2, the three strategic capabilities from the NRBV perspective are
congruent with the value chain concept in terms of “how it takes place,” “where
it takes place,” and “who is the key party involved.”
The analytical framework integrating NRBV with Porter’s value chain is
useful for conceptualizing GR, as retailing is viewed in a value chain as “the set
of business activities that add value to the products and services sold to con-
sumers for their personal or family use.”41 Given the fact that environmental
practices often span across functional areas in organizations,42 it is appropriate
to examine the underlying practices of GR and their performance implications
by analyzing the retail value chain.43 Table 3 identifies three mutually exclusive
dimensions of GR activities, namely, internal-improvement-based GR, external-
coordination-based GR, and supportive-development-based GR. The attributes “end,”
“mean,” “key party involved,” and “function in the value chain” are used for
comparisons and contrasts among these three dimensions of GR.
These three dimensions enable us to categorize the GR practices reported
in the archival documents of the sampled retailers. The categories and sub-cat-
egories of GR practices with illustrative examples are summarized in Table 4.
TABLE 2. Linking NRBV with Porter’s Value Chain
Strategic
Capabilities Who Is the Key
in the Value How It Where It Key Party Elements
Chain Takes Place Takes Place Involved Summarized
Pollution Improving efficiency by Internal Activities: Employees Internal

Prevention minimizing emissions, Operations, Improvement
effluents, and waste in
operations Logistics
Product Coordinating with External Activities: Stakeholders External

Stewardship stakeholders to Procurement, Coordination
minimize life-cycle
costs of products Marketing,
After-Sales Service
Sustainable Developing Supportive Activities: Top Management Supportive

Development technology and human Firm Infrastructure, Development
resources to support
green primary activities Technology
and further growth of Development,
the firm Human Resource
Management
Discussion: Dimensions of Green

Retailing and Retailers’ Roles
Internal-improvement-based GR practices are central to minimizing emissions,
effluents, and waste in operations, which in turn helps retailers reduce costs and
gain in environmental performance. This is consistent with the philosophy of
total quality environmental management (TQEM), which focuses on improving
the efficiency of production, minimizing waste, and reducing costs throughout
the entire corporate system.44 Congruent with the “zero-defects” goal of TQEM,
internal-improvement-based GR demands continuous improvement at every step
of the operations process with a view to attaining total elimination of waste.45
Continuous improvement is concerned with constant evaluation and improve-
ment of the operations process for enhancing efficiency.46 There are several ways
to gain efficiency through process improvement and innovation. They include
minimizing materials input, reducing energy consumption, maximizing the use
of renewable resources, and extending product durability.47 Since continuous
improvement of the process is helpful for mitigating the environmental damages
caused by the process activities, eco-efficiency (i.e., simultaneously maximizing
productivity and environmental performance) can be improved.48
Consistent with the notion of eco-efficiency that environmental impact
should be reduced throughout a product’s life cycle,49 external-coordination-based
GR focuses on coordinating with related parties to minimize the life-cycle cost
of the product. This includes the environmental impact of the product from the
TABLE 3. Attributes of the Dimensions of Green Retailing Practices
Dimensions of GR Practices
Attributes Internal-Improvement- External- Coordination- Supportive-

Based GR Based GR Development-Based GR
End Minimize waste in Minimize life-cycle costs of Minimize environmental
internal operations products burden to sustain firm
growth and development
Mean Continuous Stakeholder Integration Long-term commitment

improvement in and mission in
operations environmental protection
Key Party Employees Suppliers and Customers Top Management

Involved
Function in the Primary Internal Primary External Activities: Supportive Activities in
Value Chain Activities: operations and procurement, marketing, the Value Chain: firm
logistics and after-sales service infrastructure, human
resource management, and
technology development
TABLE 4. Dimensions of Green Retailing Practices (continued on next page)
Dimensions of
GR Practices Descriptions Examples
Internal-
Improvement- Minimizing Emissions, Effluents, and Waste
Based GR in Internal Operations
Green Store Utilize system or device in the store Through the devices such as energy efficient
Utilization which helps energy conservation or HVAC Roof Top Units (RTU), T12 fluorescent
reducing/recycling wastes lighting with energy efficient T8 or T5 fluorescent
lighting, the reduction of energy usage in 2008
is 438 million kWh on a comparable store basis
(Sears Holdings Corp.)
Green Transport goods with reduced Have used river transportation since 2004
Transportation consumption of materials or between Anvers and Villvoorde (Brussels) to
energy/ increase in effectiveness transport 3,000 containers per year, allowing
a reduction of CO2 emissions by 54 tons.
(Carrefour)
External-
Coordination- Coordinating with Stakeholders
Based GR to Minimize Life-Cycle Costs of Products
Green Procurement Purchase goods from, or develop Purchased MSC and FSC-certified products (e.g.,
partnership with, a council which Wal-Mart, Tesco, Carrefour)
supports sustainability; purchase
goods with eco-labels such as FSC,
MSC, showing the environmental
impact
TABLE 4. Dimensions of Green Retailing Practices (continued from previous page)
Dimensions of
GR Practices Descriptions Examples
Green Product Cooperate with suppliers Developed “Extended Roll Life” products that
Design in designing products with condense several rolls of either toilet paper or
environmental considerations paper towels into one “Extended Roll Life” roll.
By selling twice as many Charmin® 6 Mega Roll
packs, twice as many units can be shipped. Wal-
Mart eliminates 89.5 million cardboard roll cores,
eliminates 360,087 pounds of plastic wrapping
and reduces diesel consumption by 53,966 gallons.
(Wal-Mart)
Green Packaging Cooperate with suppliers to Saved 2,600 tons of glass from one supplier by
develop packaging which can be lighter glass packaging; imported New World
reused and recycled or waste can wines in bulk and bottling them in the UK has
be reduced saved around 4,100 tons of carbon emissions;
removed 24.8 tons of plastic packaging for
electrical products (Tesco)
Green Promotion Educate/train/encourage customers Launched Green Clubcard Points in August 2006,
for their participation in recycling/ and since then saved over 3 billion bags. (Tesco)
reducing waste/ reusing products
Green After-Sales Provide channels for customers Helped customers recycle their bottles and cans.
Service to participate in reducing waste Provide and staff the machines servicing the need
and reusing products; collect of residents to return their used bottles and cans
disassembled product from for refunds. In 2006, nearly 207 million cans and
individual customers and return bottles were recycled at Fred Meyer’s 50 stores in
them to suppliers Oregon.(The Kroger Co.)
Supportive-
Development- Furnishing Supportive Activities
Based GR to Sustain Environmental Protection Efforts
Green Policy Develop missions and visions on “Costco has always sought to be a good steward
green commitment of the environment, and we continue to pursue
new initiatives and implement new polices that
enhance our performance in this important area”
(Costco)
Green Technology Support research, investment or Target has been a member of the U.S. Green
Development co-operation with other agencies Building Council (USGBC) since 1997, and
for developing technology to participating in the USGBC Pilot Portfolio
reduce environmental impact Program to explore retailers’ unique sustainable
design needs and advance the use of LEED
standards. (Target)
Green Human Promote employee participation Organized “energy saving weeks” to show
Resource for green development employees options for lowering energy
Development consumption. Motivate employees to reduce
energy use as much as possible by measuring the
energy consumption since 2002. (Metro Group)
production, usage, and disposal processes.50 The retailer’s role as a coordinator

in the value chain is critical for a green practice to succeed. The environmental
efforts of retailers in the value chain can be compromised when there is no coor-
dinated supplier and customer involvement to lessen the environmental harms
caused at the different stages of a product’s life cycle.51
Supportive-development-based GR practices refer to the research and support
activities developed in support of environmental preservation for retailing. Firms
need to develop a long-term vision and a commitment to environmental protec-
tion. As stated by Tesco, “We are committed to cutting our carbon footprint in
every area of our business. And we want to make it easier for our customers to
do the same by offering greener, more sustainable choice.”52 Target says, “We are
committed to providing our guests with great design, which is consistent with
protecting and managing our environmental resources. Target encouraged man-
ufacturers to remove harmful Perfluorooctanoic (PFOA) chemicals from prod-
ucts used in fabric and garment processing and to develop PFOA-free chemical
alternatives.”53 These examples demonstrate that the environmental goals stated
in the retailer’s policy can influence supplier and customer behaviors by control-
ling, organizing, and managing resources and knowledge across the value chain.
Such influences can be reinforced by the supportive-development-based GR practices
whereby retailers furnish supportive activities to sustain environmental protec-
tion efforts in their value chains.
Coordination theory 54 is useful in explaining how retailers perform
GR practices and the distinctive roles they play in the greening of their value
chains. GR requires the act of managing three generic kinds of interdependence
between value chain partners to achieve an environmental goal: prerequisite
interdependence occurs when output of one activity is required by the next
activity; shared resource interdependence refers to the situation where a resource
is required by multiple activities; and simultaneity interdependence is when more
than one activity must occur at a time.55 The interdependent nature of GR prac-
tices highlights the distinctive roles of retailers in greening their value chains.
Retailer Role 1: Provide an Environmentally Friendly Physical

Retail Environment to Facilitate Interaction with Customers
Transactions involve the simultaneous processes of selling and buying.
Coordination theory suggests that when more than one activity must occur at
a time, synchronization is needed to manage interdependence. Retailers thus
provide a physical place for synchronizing transaction activities. Store design
has long been recognized as a major element of a retailer’s operations56 and
the required energy consumption is fast becoming a cost concern for retailers.
A survey revealed that 87.5% of retailers experienced energy cost increase and
64% indicated taking actions to create more efficient stores for reducing energy
expenses.57 For example, Target’s stores in California use rooftop solar panels to
supply 20% of their electricity needs, and Fontana stores use skylights to provide
up to 100% of the store’s lighting needs for six hours a day.58 When a retailer
utilizes the green store, it is essential to consider customer comfort. Metro Cash
& Carry has installed walk-in freezer rooms as an energy-efficient alternative

to separate refrigerated display cases with constant temperature maintained at
zero degree Celsius segregated by glass walls. Considering the need for customer
comfort, fleece jackets are available upon request. This solution allows its stores
to save up to 30% on electric power consumption for refrigeration.59
Retailer Role 2: Transfer Goods from Manufacturers to Consumers

in an Environmentally Friendly Way
Retailers take part in coordinating transportation logistics, where products
are interdependently transferred from the point of production (manufactur-
ers) to the point of consumption (consumers).60 Retailers seek to ensure prod-
uct availability with efficient material flows.61 Zara, a Spanish apparel retailer,
adopts automated routing systems for delivering electronically tagged garments
to appropriate loading bays in its logistics centers. Such technological adoption
is helpful for reducing shrinkage levels with a 98.9% accuracy in distribution.62
Eco-efficiency is thus improved where the goods are delivered with less con-
sumption of materials, hence helping preserve the environment. For food items,
different kinds of food ingredients require storage under different temperature-
controlled environments and separate delivery. MOS Burger, a Japan-based
burger chain, has utilized trucks equipped with three temperature belts to serve
the need for freezing, refrigeration, and normal temperature.63 It is an example
of green transportation whereby eco-efficiency is improved by consolidated ship-
ments, thus reducing fuel consumption.
Retailer Role 3: Disseminate the Voices of Customers

and Provide Feedback to Suppliers
Wal-Mart noted that 8% of its environmental footprint comes from direct
operations while the other 92% is attributable to its products sold.64 Therefore,
green procurement, green packaging, and green product design are instrumental in
greening the value chain. The coordinator role of retailers in these practices is
essential to connecting customers with suppliers and passing along customer
needs to the latter. Environmentally conscious consumers prefer products with
eco-design that have been development with input from customers.65 Sev-
eral studies have identified classifications of green consumers (see Table 5).66
These classifications highlight the differences in consumers’ green interests and
motivations. The supply of products to retail outlets has long been initiated by
manufacturers.67 Recently, the domain has shifted to retailers to gauge custom-
ers’ needs and wants with the market intelligence disseminated to suppliers for
their responsive actions. The two actors (supplier and customer) require the
intermediation of retailers as an information processing mechanism (resource)
to transmit the information (task) to achieve the environmental goal from the
coordination-theoretic perspective.
As stated by Kroger, “We recognize that our customers are increasingly
interested in making a difference when it comes to their individual efforts and
choices. Our efforts in helping them extend to the products customers find on
TABLE 5. Examples of Studies on Segmenting the Green Consumers
Studies Segments Characteristics, Interest and Motivation of the Segment
Finisterra do The Green Develop a favorable position in relation to all environmental aspects,
Paco et al. Activists particularly towards perceived efficiency, environmental friendly buying
(2009) behavior, recycling, sensitivity to the economic factor and resource saving;
Question the promotional and advertising claims made by firms.
The The environment does not occupy a prominent position among their concerns;
Undefined Their individual actions are considered not directly relate to the improvement
of the environment.
The Hold a negative position in relation to some environmental aspects (activism,

Uncommitted environmental friendly buying behavior, recycling, resource saving, and
willingness to pay more to preserve the environment) despite they claim to
have knowledge about the environmental issue.
Natural LOHAS Values-driven trend predictors who are driven by personal and planetary
Marketing health;
Institute Exhibit high influence on others, are the highest buyers of green, healthy, and
(2008) socially-conscious products, and are less price sensitive;
Prefer companies practicing corporate social responsibility (CSR) and boycott
those who do not adhere to their standards.
Naturalites Driven by personal health and wellness and adhere to a healthy lifestyle;
High purchasers of eco-consumables, want to do more for the environment;
Loyal to those companies/brands practicing credible CSR.
Drifters Driven by trends;

Currently engaged in sustainability though their behaviors are not deeply
rooted;
Price sensitive and are more likely to be eco-concerned if affected personally.
Conventionals A practical segment without green attitudes but demonstrate some “municipal”
environmental behaviors such as recycling and energy conservation;
Driven more by cost savings or a desire to reduce waste than by
environmental consciousness.
Unconcerned Not necessarily “against” the environment but is not actively engaged in
protecting it;
Other priorities in their lives simply take precedent.
Yahoo! Green Deeply More educated;

Study (2008) Committed Higher percentage live in metropolitan areas;
Respond most to the “positively impact the environment” message.
Trendy More ethnically diverse;

Respond to messages about “everybody else is doing it,” and newest
technology.
Practical Motivated to be green by immediate benefits such as saving money or

improving health.
Passive Respond to messages about providing a better life for their family.
our store shelves. We recently teamed with one of our suppliers, Tetra Pak, to
use its Tetra Recart recyclable paper cartons for our Kroger brand tomato sauce
and other tomato products instead of cans.”68 This statement illustrates cus-
tomers’ desire for protecting the environment and retailers’ response in green
packaging.
On the feedback reflector role of retailers, Wal-Mart introduced a new
square-shaped design for milk jugs in 2008 that require no crates or racks for
shipping and storage. Trucks can accommodate 4,704 more gallons per truck or
9% of their capacity. The jugs are thus cheaper to ship and better for the envi-
ronment with a saving of $0.10 to $0.20 a gallon. However, customers com-
plained that it is very hard to pour the milk, resulting in spills everywhere.69
Similarly, customer satisfaction is the key to determining whether Wal-Mart’s
effort in developing recycled yarn socks and bamboo fiber long-sleeve T-shirts
are successful or not.70 Making continuous improvement by reflecting on and
addressing customer feedback is essential for green product design. A further step
is to acquire merchandise through green procurement or develop partnerships with
NGOs (such as FSC and MSC) for certificating that the products on the shelf are
sourced from an environmentally sustainable forestry and fishery.
Retailer Role 4: Economize and Stimulate

End-of-Life Product Stewardship
The end-of-life product stewardship path begins with customers. Scale
economy is critical for the success of end-of-life product stewardship. In par-
ticular, manufacturers find it difficult to collect waste from widely dispersed
individual customers, and small-scale recycling can be costly for them.71 This
illustrates the dependency of suppliers and customers on retailers in take-back
efforts and green after-sales service. Wal-Mart has formed a partnership with Sam-
sung Electronics America. Through the Samsung Recycling DirectSM program,
customers can recycle Samsung consumer electronics for free (as well as those
from Wal-Mart’s former private brands Durabrand and Ilo, which are no longer
sold at Wal-Mart) at numerous fixed drop-off locations in all the 50 states of the
USA.72 The retailer’s role as coordinator is helpful to collect disassembled prod-
ucts from individual customers and return them to the original supplier. Carre-
four has developed environmental awareness for its customers in stores during
events such as World Environment Day.73 A retailer’s coordinator role in educat-
ing or training customers to participate in green initiatives is reflective of green
promotion.
Retailer Role 5: Influence and Support the Entire Value System

The coordinator role of retailers in green technology development is to facili-
tate knowledge sharing and resource monitoring among the involved parties
in greening their value chains. Besides technologies such as solar power sys-
tems and energy efficient fluorescent lighting, which are devices to help save
resources directly, technological deployment has the broad power to reduce the
costs of coordination, communications, and information processing,74 benefiting
the greening of the entire value system. As advocated by Porter, gaining compet-
itive advantage requires exploiting a system’s interdependencies, and it usually
requires information or information flows that allow optimization or coordina-
tion to take place.75 Information technology serves this purpose for retailers.
For example, through a program called “efficient consumer response,” retailer’s
checkout scanner data are directly transmitted to the manufacturer. Order-
ing, payments, and invoicing are fully automated through an electronic data
interchange so that products can be continuously replenished on a daily basis.76
This helps prevent stockpiling of products, which in turn minimizes waste from
excessive stocks. Further derived benefits are reduction in paper usage in trans-
actions, decrease in labor cost from manual data-entries, and enhancement of
customer service by reducing the cycle time from order to delivery.77
In particular, retailers’ development of a green policy should not be con-
fined to coordinating environmental management practices within organiza-
tional boundaries but should be extended to encompass all parties in the value
system. Wal-Mart, the largest retailer in the world, announced a green policy
in 2007 that they would sell only concentrated liquid laundry detergent at U.S.
Wal-Mart discount stores, Supercenters, Sam’s Clubs, and Neighborhood Mar-
kets starting from May 2008.78 One of its suppliers, Unilever, developed its all®
small-and-mighty® detergent, which is one third the size of the 100-oz bottle but
can wash just as many loads of laundry and is easier to carry. Wal-Mart expects
this move to save 430 million gallons of water in the production process, 80 mil-
lion pounds of plastic resin, and 125 million pounds of cardboard during the first
three years of selling only liquid laundry detergent. P&G, Unilever, Dial, Huish,
and Church & Dwight responded by transforming their facilities and offering
their own concentrated laundry detergent.79 On the other hand, customers
can only buy these environmentally friendly laundry detergents without other
choice in the store. Customers are directed to use environmental products with
less water. Natural resources are thus saved not only at the production stage, but
also at the consumption stage of a product fostered by retailers.
Strategic Recommendations for Green Retailing Success

Cooperation and shared vision in the value chain are closely linked to
continuous improvement, which is the fundamental resource of success in GR.
Consistent with studies in the environmental literature, continuous improve-
ment has been highlighted as the core element in environmental management
processes that enable organizations to continually mitigate their environmental
damage.80 To provide practitioners with strategic recommendations organized in
a logical sequence of implementation steps, we propose a strategy loop (Figure
2) grounded in Deming’s Plan-Do-Check-Act model.81
Identify Waste Reduction Opportunities

throughout the Retail Value Chain
With the objective of achieving “zero waste,” the key to GR success
is to identify waste reduction opportunities along the retail value chain. An
FIGURE 2. Continuous Improvement for Green Retailing Implementation
4. Measure and 1. Identify

control environmental waste reduction
performance opportunities
3. External 2. Internal
involvement and involvement and
communication communication
illustrative example is Starbucks Coffee, which began a comprehensive energy

audit in 2007. This energy audit involves 24-hour monitoring of all the aspects
of energy usage among a representative sample of 19 Starbucks stores in the
USA over a six-month period. The stores selected for the audit vary in store
design, size and age, as well as climatic regions. In identifying ways to use water
and energy more efficiently and reduce operations costs, Starbucks distributes
“resource report cards” to approximately 350 store managers in six regions for
them to provide feedback on store energy and water use. The data collected are
then analyzed to identify conservation opportunities. The results provide a basis
for specifying the environmental design of new stores in collaboration with the
U.S. Green Building Council.82 Tools like energy audits and managers’ feedback
reports help pinpoint where waste is generated in the retail chain and aid in the
formulation of future environmental policy. Thus, it is the first critical step of
successful GR.
Internal Involvement and Communication

To fully execute GR throughout the retail chain, every employee should
understand their role and participate in the process. Internal training and edu-
cation can nurture a green culture and create awareness of green practices for
implementation in each of the retail chain activities. IKEA, for example, edu-
cates its employees on the green concept. They offer environmental training,
the opportunity to participate in the environmental committee, and part-time
environmental coordinator positions. As mentioned by Anders Berglund, the
co-owner of IKEA, “We believe education is a large part of our role, certainly,
which is why we offer environmental training for coworkers.”83 Whole Foods
Market, as another example, conducts “Green Mission Training” for employees
about recycling.84
Internal involvement requires cooperation and cross-functional liai-
son among employees for better organizational learning about GR adoption.
Through cross-functional liaison, an understanding of environmental issues,

high technical skills, and detailed policies and procedures, firms can identify
ways to reduce waste and mitigate the risk of causing environmental damage.85
The Carrefour Group created its Sustainable Development Department in 2001.
This department involves a functional organization of dedicated people and a
sustainability network. Each year, the Sustainable Development Report summa-
rizes the initiatives and progress accomplished during the year. The department
defines indicators that are measurable for evaluating the evolution of its envi-
ronmental performance, such as energy consumption and waste management of
the Carrefour Group. It also provides support for cross-departmental operational
networks (spanning Human Resources, Merchandise, Assets, and Logistics) for
better environmental achievement.86 GR practices are especially amenable to
the benefits derived from learning because of their people-intensive nature and
their dependence upon tacit skill development via employee involvement and
coordination of team efforts and shared expertise.87 Coordination ensures that
GR is integrated into all the stages of the retail value chain and facilitates the
implementation process with the participation of various departmental functions
along the retail value chain.
External Involvement and Communication in the Value Chain

A carbon labeling program—which states the quantity in grams of carbon
dioxide equivalent put into the atmosphere during the manufacture, distribu-
tion, and disposal of products—is now being introduced in many parts of the
world by companies such as the UK’s Tesco, France’s Casino, and the U.S.’s Wal-
Mart.88 However, there has been controversy regarding the use of carbon labels;
for instance, the complexity of counting carbon along the entire supply chain89
and confusion for customers who do not understand what the figure means.90
It cannot be denied that the carbon labeling program still has a long way to go.
Yet it illustrates the importance of external involvement and communication
in executing green practices. The efforts of suppliers, NGOs, and governments
are essential to the success of the program. For example, Wal-Mart has asked its
60,000 suppliers to take part in measuring their carbon footprint,91 Tesco is now
working with Carbon Trust to complete and verify the calculation within a few
months 91and establish a website explaining the carbon label to customers;92 and
Japan’s trade ministry has drawn up a uniform method of labeling carbon emis-
sions to avoid fears among some firms that their competitors may use in-house
calculations and produce the lowest possible emissions data.93
Green practices may fail due to a lack of proof and third-party verifica-
tion. For example, Kmart recently was slapped with “fake green” charges by the
U.S. Federal Trade Commission for making “false and unsubstantiated claims”
that its American Fare private-label paper products are biodegradable. Kmart
was required to remove the biodegradable claim from the product.94 Lifestyles
of Health and Sustainability (LOHAS) is a progressive segment of consumers
focusing on health and fitness, the environment, personal development, sustain-
able living, and social justice.95 More than 40% of the members of LOHAS look
for proof and third-party verification when a company makes a claim that they
are embracing green practices.96 NGOs thus play a vital role in promoting green
practices in the retailing industry by recognizing sustainable products with their
certifications. Stocking products with these globally recognized certifications
can help reduce the criticisms by environmentally conscious customers or other
environmental groups.
A number of leading retailers such as Sainsbury’s, Waitrose, Marks &
Spencer, and ASDA have started stocking goods with MSC eco-labels.97 Giant
retailers Home Depot, Lowes, and IKEA, three of the five largest wood buyers
in the world, are now active buyers of FSC labeled products.98
Measure and Control Environmental Performance

“If you cannot measure it, you cannot control it. If you cannot control
it, you cannot manage it.” This saying illustrates the importance of measurement
and control to ensure the success of GR.
In 2005, the Carrefour group engaged a new management system that
enables Carrefour’s 200 users all over the world to manage standard and cus-
tomized environmental performance across the whole enterprise. Such a tool
offers the retailer a user-friendly way to input, access, consolidate, and analyze
data in a multi-lingual format and enables its staff to compare current per-
formance with that in previous years. This tool helps Carrefour measure and
control the firm’s environmental performance and allows it to establish clear
and objective goals to reduce its carbon footprint. The Carrefour group reduced
energy consumption by 9.2% in 2007.99
Conclusion
GR has become popular among retailers who are striving to balance
economic gains with environmental performance in the face of growing pres-
sures from customers, regulators, NGOs, and other stakeholder groups. The
three dimensions of GR identified here—internal-improvement-based GR, exter-
nal-coordination-based GR, and supportive-development-based GR—highlight the
implementation requirements for retailers trying to reduce waste and improve
environmental performance along their value chains. As retailers vary in busi-
ness scope and scale, there is no single universal solution for GR. It is important
for retailers to carefully design and prioritize the GR dimensions to address the
specific needs of their business segments. They should also prioritize the three
GR dimensions for improvement actions based on their contextual situations
and resources. For instance, large retailers may benefit from establishing their
own research department to develop green technology to take advantage of scale
economy, whereas those with fewer resources may find it economical to collabo-
rate with suppliers and NGOs to develop means to reduce the life-cycle costs of
their products. Fashion retailers that require frequent stock replenishments may
take the advantage of green transportation such as using double-decker trailers
that carry more products per delivery journey to improve eco-efficiency. Elec-
tronics retailers may favor green after-sales service such as providing trade-in
services for new electronics to facilitate end-of-life product stewardship. Grocery

stores seeking to minimize the environmental footprint of their merchandise
may find green product design and packaging worthwhile to pursue. Home fur-
niture and furnishings retailers can contribute by partnering with suppliers to
nourish the development of sustainable forestry. To determine what GR prac-
tices can serve their best interests, practitioners can follow our proposed strategy
loop, which provides a roadmap for GR success. Following the steps in the strat-
egy loop, retailers will be able to evaluate their own situations, formulate action
plans for GR, and make adjustments in their value chain activities to improve
performance outcomes in both economic and environmental aspects.
Policy makers should formulate proper environmental regulations and
voluntary measures to green the retailing industry. Complying with regulations
is not the only consideration for retailers who embrace GR. Leading retailers
often move ahead of legislation to adopt GR in order to reap the benefit of cost
saving and serve as role models for others. Legislation should not be taken as
the sole mechanism to promote green behaviors in the retail sector. Government
policies can be helpful in providing an aid for supportive development-based GR,
e.g., allocating research funds for green product design and green technology
development.
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Green Retailing: Factors for Success

Author(s): Kee-hung Lai, T.C.E. Cheng and Ailie K.Y. Tang

© 2010 by The Regents of

6 CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

pressures on retailers to emphasize environmental protection in their operations.

CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 7

The beneﬁts of GR are attractive to retailers seeking cost and service

8 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

Publication Document Scope of Green

Ike Wilson McClatchy- Green Retail Tips Waste reduction;

CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 9

Publication Document Scope of Green

Mike Duff Retailing Today Carefully Organizing Energy conservation;

Erica L. Supply Chain The Greening of Green transportation;

k. M. Wilson, “Going Green,” Chain Store Age, 84/6 (2008): 12.

10 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

Publication Document Scope of Green

Barry Seifer Environmental Consumers and the Green Store design;

Alan Knight Consumer Policy Sustainable Green procurement;

r. T. Craig, “Green is the New Black,” Retailing Today, 46/1 (2007): 8.

t. M. Wilson, “Sky Gardens,” Chain Store Age, 82/13 (2006): 118-119.

CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 11

12 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

Third-Party Data for Veriﬁcation

Conceptualizing Green Retailing

CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 13

Reducing waste is fundamental to pollution prevention, which focuses on

14 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

TABLE 2. Linking NRBV with Porter’s Value Chain

Pollution Improving efﬁciency by Internal Activities: Employees Internal

Product Coordinating with External Activities: Stakeholders External

Sustainable Developing Supportive Activities: Top Management Supportive

Discussion: Dimensions of Green

CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 15

TABLE 3. Attributes of the Dimensions of Green Retailing Practices

Attributes Internal-Improvement- External- Coordination- Supportive-

Mean Continuous Stakeholder Integration Long-term commitment

Key Party Employees Suppliers and Customers Top Management

TABLE 4. Dimensions of Green Retailing Practices (continued on next page)

16 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

TABLE 4. Dimensions of Green Retailing Practices (continued from previous page)

CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 17

production, usage, and disposal processes.50 The retailer’s role as a coordinator

Retailer Role 1: Provide an Environmentally Friendly Physical

18 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

& Carry has installed walk-in freezer rooms as an energy-efﬁcient alternative

Retailer Role 2: Transfer Goods from Manufacturers to Consumers

Retailer Role 3: Disseminate the Voices of Customers

CALIFORNIA MANAGEMENT REVIEW VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU 19

TABLE 5. Examples of Studies on Segmenting the Green Consumers

Studies Segments Characteristics, Interest and Motivation of the Segment

The Hold a negative position in relation to some environmental aspects (activism,

Drifters Driven by trends;

Yahoo! Green Deeply More educated;

Trendy More ethnically diverse;

Practical Motivated to be green by immediate beneﬁts such as saving money or

20 UNIVERSITY OF CALIFORNIA, BERKELEY VOL. 52, NO. 2 WINTER 2010 CMR.BERKELEY.EDU

Retailer Role 4: Economize and Stimulate

Retailer Role 5: Inﬂuence and Support the Entire Value System