Industry Survey
Travel Retail Voices VI
Sustainability matters
Sustainability is high on the industry agenda already, and carbon reduction efforts by the wider aviation eco-system have been brought into sharper focus by the recent Toulouse Declaration on emissions. Within travel retail, different stakeholders are taking varying approaches. Airports, states the report, expect travel retailers to focus on areas customers value the most, such as infrastructure and utility, plastic use and wastage and a more responsible product offering. “Action on environmental issues is considered paramount in order to attract passenger loyalty. In the non- aviation business, commitments to local communities – and as a responsible employer – mean that, as part of concession contracts, sourcing regional products is becoming a requirement. Travellers also want healthier options, a trend that has accelerated during the Covid-19 pandemic.” The broad view from brands is that travel retailers can do better in conveying their own sustainability messages and efforts to the final consumers, and to “sophisticate their storytelling”. One luxury house noted that efforts to reduce packaging should not be underlined by offering a plastic bag at checkout. Others said that improving stock flows would represent another sustainability ‘win’ for the channel.
Reducing their environmental impact and employer responsibility are the top CSR priorities for airports…
Q: Sustainability has become a top priority for all parties in our ecosystem and more importantly for our end consumers. As a business what are your top three priorities in terms of sustainability?
Airports' top three CSR priorities
Reducing your company's carbon footprint/improving the sustainability of your supply chain
Looking after your own people (wellbeing, D&I, employee engagement etc)
Limiting waste/waste sorting and recycling
Brands' top three CSR priorities
Looking after your own people (wellbeing, D&I, employee engagement etc)
Reducing your company's carbon footprint/improving the sustainability of your supply chain
Developing a more eco-friendly product offering
Travel Retail is recognised by brands for the great showcasing opportunities it offers their products. This also applies to messages on sustainability. “Not only sense of place, but also sense of purpose,” says L’Oréal Travel Retail. Storytelling on sustainability needs to be stronger so that consumers get the message, it adds. That message should not be a thinly-veiled promotional strategy, which would be a turn-off for shoppers. “We have to commercialise with purpose. It’s about DNA change,” notes Mondelez World Travel Retail. Cooperation from conception to execution is key.
Consumers today expect Sense of Place, but also sense of purpose
“Integrating sustainability from concept and sourcing, through to final execution is an ultimate goal for all stakeholders. Brands and travel retailers will have to work together to achieve the zero waste ambitions of their landlords.” Sustainability is already being reflected in partnership agreements, and this trend is set to accelerate. “The longer that landlords don’t have a fixed sustainability road map from their retail partners, the more likely it is that they may impose one through contracts. In public tenders several airports incorporate sustainability, human resource, and corporate governance elements as an incentive to service providers. “As time goes by, all stakeholders are likely to see more tangible reputational benefits from being more sustainable. Commercial viability remains important too and that will depend on defining specific sustainability KPIs for retail – and working hand-in-hand to meet them.”
Partner's message
The Moodie Davitt eZine Issue 308 | 13 April 2022
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail kristyn@moodiedavittreport.com