Green retail, flea markets, and the ‘buy local’ movement

Whether it’s “locavores” eating local produce, architects and builders sourcing materials locally to meet environmental standards, or people who want to support the local economy, individuals and businesses alike seem to be moving towards buying local products of all kinds. How far the trend will go and what effect it will have long term on local businesses is difficult to predict, but the trend does appear to have real potential for small business owners of all kinds, including vendors at swap meets and flea markets.

Check out my entire article on FleaMarketZone.com.

Contractors emphasize construction waste management

A new survey of contractors reveals that managing construction waste is the second-most important green practice to these building pros. The report from McGraw Hill Construction, highlighted in a McGraw Hill press release, included these results:

• By 2013, McGraw-Hill Construction projects that the green building market will be up to 25 percent of all new construction starts by value, equating to a $140 billion market.
• 61 percent of contractors rate waste management plans as the second-most important aspect of green building, just behind energy efficiency.
• The United States generated 143.5 million tons of building-related construction and demolition debris in 2008, but only 28 percent (40.2 million tons) was reused, recycled or sent to waste-to-energy facilities.
• The biggest drivers behind sustainable construction waste management practices include client demand (82 percent) and government regulations (81 percent). Competitive advantage (77 percent) and increases in education and awareness (75 percent) are also cited as major influencing factors.   

McGraw Hill is in the business of producing research-driven papers that it then offers for sale. But the company releases choice factoids from the research to whet the appetite of potential customers.

Report: Eco-attitudes are changing

New research from RSR and RILA concludes that attitudes towards green practices are evolving and that retailers are more and more inclined to put energy-saving, eco-conscious measures front and center, especially among green market leaders referred to as "Winners." From the PDF report:

Natural lighting boosts retail sales -- at least it did in 1999!

I was browsing the Web, following interesting links, and I came to a company -- Entech Solar -- that makes skylights for commercial businesses. And that led me to a link at the bottom of that page, on Skylighting and Retail Stores. (If you want to read the report, you have to go there and click on the link yourself, since I was unable to embed it.)

That research report, in PDF format, had some interesting results, including these:

Skylights were found to be positively and significantly correlated to higher sales. All other things being equal, an average non-skylit store in the chain would likely have 40% higher sales with the addition of skylights, with a probable range between 31% and 49%. This was found with 99% statistical certainty. After the number of hours open per week, the presence of skylights was the best predictor of the sales per store of all the variables that we considered.

and also

Informal interviews with shoppers repeatedly confirmed that the vast majority of shoppers were not aware of the skylights. The questioner, looking just like any other shopper, would approach a shopper and ask: “May I ask you a question?” The response was universally affirmative. We then asked, “What do you think of the skylights in this store?” The typical response was to look up, look puzzled, and then say, “That’s funny. I never noticed them before.” Out of 42 interviews in 10 skylit stores, only three shoppers could be found who were already aware of the skylights. Two of those volunteered that they had only noticed the skylights because their small child had pointed them out on an earlier trip, while looking up at a balloon or other bright object.

and also

A store with skylights is observed to have a sales index higher than an equivalent store without skylights. This is clearly the largest effect of any of the variables considered, (at B=+1.55). It is possible that there may be other reasons that the skylit stores are performing so well as a group. In our site visits, we made every effort to try to identify other characteristics of the skylit stores that might contribute to higher sales, but we did not find any obvious candidates. However, that possibility should always be kept in mind when examining these results.

and this

These results show that adding skylighting to the average non-skylit store within the chain would be likely to improve its performance by 40%, with a probable range somewhere between 31% and 49%. Thus, if this non-skylit store were averaging sales of $2/SF, then its sales might be expected to increase to between $2.61 and $2.98 with the addition of a skylighting system.

But here's the biggest caveat -- the study was conducted in 1999! Ugh. I have a call in to the research company, and I'll post any updates I hear about. The research was sponsored by the utility company PG&E, which encourages me, since a utility company would not, I think, preferentially seek out research that suggests decreasing electricity use. Food for thought.

Does vinyl flooring cause autism and defects in kids?

Darned if I know! But if you sell or make vinyl flooring, you should know that reports, like this one, reported in Treehugger, are linking product to genital deformities and autism.

Survey: 41% of retailers say sustainability is "key"

Prenova and Chain Store Age magazine have teamed up to produce a free report on sustainability and energy issues for retailers. You have to register with some basic data before you can download the PDF, but it's worth it. Here are a couple excerpts:

Without question, sustainability is a serious concern for retailers, regardless of the sales volume of the chain or the number of stores. In the survey, the largest percentage of retailers, 41.2%, said that sustainability is a “key component” of their strategy, and 38.6% said that sustainability is “important but not one of our top priorities.” Only 3% said “sustainability isn’t something we worry about.”

Why are the smaller-sized retailers slower to formalize their strategies? Is it simply that larger retailers have more resources to dedicate to the initiatives? Of those surveyed, only 13.9% of respondents — generally the larger-sized retailers — say that their sustainability strategies fall under the responsibility of an “energy management department,” whereas the majority of smaller retailers seem to parcel out the responsibilities to disparate groups, including facilities management, construction and finance.

Full disclosure: I'm the managing editor at Chain Store Age.

Research firm seeks retailers to participate in poll

RSR is a research company polling retailers about attitudes toward green issues. You can click here to participate in the poll. And if you want polling data right now, check out the similar survey conducted by Home Channel News earlier this year. Of course, I'm the managing editor of Home Channel News.

Green construction may triple in next five years

McGraw-Hill Construction has released survey results that paint a rosy picture of the future of the green building industry. "The value of green building construction starts was up five-fold from 2005 to 2008 (from $10 billion to $36-$49 billion), and could triple by 2013, reaching $96-$140 billion," according to a press release from the info services company, which also said:

McGraw-Hill Construction attributes green building’s rapid expansion to growing public awareness, an increase in government regulations, and recognition of bottom-line advantages. Since 2005, the perceived benefits of green building have increased and differentiated as people become more knowledgeable about green building. The decrease in operating costs is the most often cited benefit (13.6%, up from 8-9% in 2005), followed by the increase in building values (10.9%, up from 7.5% in 2005).

The 40-page survey report, Green Outlook 2009: Trends Driving Change, is available in a $250 PDF. Or you can just keep reading Home Channel News' Green Central and this blog for free. :-)

Women are more likely to buy eco-friendly products

The latest from NPD is its "Green 2008: Consumer Attitudes and Behaviors" study. The market research company says that more than half of consumers surveyed consider themselves extremely or very interested in environmentally-friendly products. The kicker -- women are more interested than men, by 57 percent to 47 percent. And NPD says that women are the ones who are doing the shopping, and who don't mind higher prices as much. According to Mark Delaney, director of NPD Group’s Home division:

In either scenario, manufacturers and retailers need to drive marketing and education efforts that will help the less-involved consumer understand the benefits of ‘green’ and what makes a product ‘green’.

Another key finding: green shoppers want energy-efficient items that save money. So make sure you market to women shoppers, and let them know which products are most cost-effective.

In a struggling economy, those products marketed as being environmentally-friendly and saving consumers money will be the products that stand the best chance of growth in the long run.

There's a lot more info in the press release (link to study, above), so check it out.

I'm not fat! I'm just big-boned!

I missed this Shelton Group survey when it came out a couple weeks ago, but it brings the funny, so I don't feel bad mentioning it late (that's a link to a PDF).

Seems that although the government has documented more people using more electricity, when you ask folks if their energy usage is up, they say no! Here's the funny part: "Most consumers either blamed kids in the home for increased electricity usage or said they did not think they used more electricity because they now had no kids in the home." LOL! As the Shelton people put it, "Those Darn Kids!"

By the way, I blogged about another Shelton survey a couple weeks ago.

Survey: consumer knowledge on energy questions is muddled

In survey results released Oct. 28, Shelton Group reveals that consumers are more muddled about basic energy questions than ever, with deep pockets of ignorance interspersed with growing awareness of how to conserve energy.

The bad news:

Fewer consumers in 2008 than in 2007 accurately responded when asked, “How is most electricity generated nationally?” with 30 percent citing “burning coal,” as opposed to 33 percent in 2007. ... One third erroneously think cars and trucks are the No. 1 cause of global warming, while only 4 percent cite the actual primary culprit of greenhouse emissions: coal-fired electric plants.

And the good:

In 2005, only 20 percent of consumers could name one source of renewable energy unaided. In 2007, 48 percent could, and in 2008, accurate responses rose to 59 percent. ... When it comes to saving energy dollars in the home, consumers were relatively accurate about the top ways that most homes can curb energy use.

Shelton Group is an ad agency entirely focused on energy efficiency and sustainability. Its Energy Pulse study has been conducted since 2005.

Survey: Seniors are early adopters

ICOM Information & Communications, a marketing solutions company that conducts consumer surveys, reports that older consumers are the ones most likely to be buying green products.

Both male and female groups 55 years and over reported above average usage of environmentally friendly home goods. Leading the way was the 55-59 year-old female demographic, who was more than twice as likely as the average consumer to use green products. Males 65-69 years old were second, more than 1.7 times as likely to use than the average American.

In total, 62 percent of respondents said that they use some kind of environmentally friendly product. Now, you have to figure that some of those polled said they did even if they don't, seeing as these days some people feel a certain level of cultural pressure to be eco-aware. But that's still a pretty huge number of folks who are voting with their wallets to go green.

Visit the ICOM Web site for more on the survey.

Energy-efficient appliances are selling better than traditional models

I got a press release from the NPD Group. They track sales trend data for a wide range of products, and they share info with us at Home Channel News on a pretty regular basis. This press release was on energy-efficient appliances, sales for which are doing quite well these days. I can't link to the data, which is not online, but let me quote from the press release.

Refrigerators: From April to June 2008, sales of Energy Star refrigerators increased 15 percent in dollars and 13 percent in units, versus one year ago. This is compared to the 11 percent declines non-Energy Star rated models are showing. Average selling prices of Energy Star refrigerators models have been more than double the price of regular models, but have leveled off in the last two years.

Washing Machines: Unit sales of Energy Star washing machines grew 3 percent, whereas, non-energy efficient models have declined by 12 percent in April-June 2008, compared to the same time last year. While energy efficient models garner a bigger dollar share (55%) than less efficient models, they only represent 40 percent of units sold.

Let me say that again: Green fridges, up 15 percent; non-green, down 11 percent. Green washers, up 3 percent; non-green, down 12 percent. That is impressive.

NPD didn't give me the Energy Star vs non-Energy Star comparisons for dishwashers and air conditioners, but they say that the former are up 5 percent and the latter are up a whopping 50 percent!

Thanks to NPD's Dora Brunette for help with the data.

Kitchen remodelers: A glass half empty or half green?

The Research Institute for Cooking & Kitchen Intelligence (RICKI) surveys 600 homeowners who remodeled their kitchens in the past 12 months. For the 2008 survey (they run it every two years), the organization asked this interesting question:

Q: Which of the following statements best describes your decisions about your kitchen remodeling purchases?

• I only purchased products I felt did not have a negative impact on the environment. -- 10%
• I strongly considered environmental impact on my purchases. -- 36%
• Other considerations were more pressing this time than the environmental impact of my purchases. -- 54%

RICKI spun the results this way: "Environmental Impact of Products Not Top Priority for Most Kitchen Remodelers." I had to laugh. If you told me that 46 percent of homeowners refused to buy products that harm the environment, or felt strongly about the eco-impact of their purchases, I'd consider that an amazingly high percent! That's a huge market of people to sell, and if you, the retailer or vendor, can make 46 percent of customers give you a second glance because of your green or energy efficient products, then that's a real leg up on the competition.

I wish RICKI had asked that two years ago; seeing how those numbers change over time would be pretty interesting. Anyway, for more info, there's a bit more online, on this page detailing all RICKI's research projects, and in this brief excerpt (PDF) of the actual research report.

Research offers insights on green home buyers

The U.S. Green Building Council (USGBC) and McGraw-Hill Construction have released preliminary results of a study on attitudes towards green home construction. One million households were surveyed to find those who had purchased green homes in the last three years. Some highlights of the research:

• The vast majority (83%) said their new homes offered lower operating costs, lower energy bills (79%), and lower water bills (68%).
• Going green was the top reason cited by survey respondents for remodeling their home (42%).
• 70% of buyers are either more or much more inclined to purchase a green home over a conventional home in down housing market. 
• More than half (56%) of those surveyed who have bought green homes earn less than $75,000 per year; 29% earn less than $50,000.
• Overall, lower income buyers say they found tax credits and government programs, indoor air quality benefits and green certifications to be the most important incentives for them to buy green homes.

Complete research results will be released in the fall.

Major appliances are trending greener

According to this $50 report from the Association of Home Appliance Manufacturers, major appliances are getting more and more water and energy efficient.

Refrigerators, dishwashers and clothes washers account for a 43% combined decrease in energy consumption since 2000. From a global climate change perspective, the energy savings realized in 2007 shipments of refrigerators, dishwashers and clothes washers would offset the CO2 emissions of more than 698 million gallons of gasoline consumed or the annual CO2 emissions from 1.3 coal fired power plants.

Clothes washer energy consumption has decreased by 63% since 2000 while tub capacity has grown by 8%. Dishwasher energy consumption has dropped nearly 30% and water consumption has declined 29% since 2000. Refrigerator energy consumption has also decreased 30% since 2000 and efficiency, measured by a unit’s energy factor has increased 39%. The average refrigerator sold today consumes less energy than a 60-watt light bulb left on 24 hours a day.

Homeowners don't put green issues first when hiring contractors

Kimberly-Clark Professional, the home improvement and auto division of Kimberly-Clark, commissioned a recent study on homeowners and contractors. Part of the study covered green issues, with interesting results:

Green considerations do not seem to play a major role in the decision to hire a contractor. In fact, 39 percent of respondents said they don’t think about environmental concerns at all when hiring a contractor. Of the environmental factors that might influence contractor choice:

· Eighteen percent of respondents said they would lean toward a contractor who recycles jobsite trash.

· Fifteen percent would favor contractors who used products with recycled content for cleanup tasks, while the same percentage said they would choose contractors who used products that reduced chemical emissions and fumes.

· Six percent would select a contractor who didn’t waste electricity by blasting the radio or leaving all the lights on.

The Web page with the announcement is here, and here's the entire press release as a PDF.

==========

Later Edit: A Kimberly-Clark person asked me to mention that "Kimberly-Clark Professional is an indispensable business partner, delivering leading-edge health, hygiene and productivity solutions that provide tangible value every day, everywhere. Known for innovative, quality solutions for away-from-home washrooms, “clean” and “industrial” manufacturing environments, and DIY settings, the global brands of Kimberly-Clark Professional include Kleenex, Scott, Kimcare, WypAll, KleenGuard, and Kimtech."

Personally, I can't vouch for the "indispensable," "leading-edge," "tangible," "every day, everywhere," and "innovative," parts, but I do actually use Scott and Kleenex products, and I'll certainly agree with the "quality" part. :-)

What "winning" retailers want in green practices

Retail Systems Research, a research company focusing on retail issues, will release a report April 24 -- Earth Day -- called "What Can Green Do for You?: Gaining Strategic Advantage in Retail via Environmentally Sound Practice."

The researchers divided retailers into two groups: "winners" who outperform their peers, and "laggards." According to a preview of the research, 72 percent of "winners" said that ethical concerns were "important or higher" motivators for stocking environmentally responsible products. Only 28 percent of "laggards" said it was important.

As for cost reduction, 52 percent of "winners" though it was important, compared with 77 percent of "laggards."

The report summary concludes:

From this, one of the most basic fundamental differences can be drawn out between retail segments. When pertaining to environmental issues, all segments agree that the customer will be the driver, and whether errant or not, that her time has not yet fully arrived.

Yet underperforming retailers continuously ask how much green initiatives will cost, and feel no accountability to the environment in which they live. Retailers that outperform their peers are actually investing now, giving less thought to cost-reduction, and viewing the brandbuilding done today as smart business for when customer demand invariably heightens. In addition, winning retailers recognize that their actions have greater impact than that of just financials.