15 Sep 2021
Posted in Retail
Primark aims at investors with distant sustainability targets, says GlobalData
Following the announcement of Primark’s sustainability strategy this morning;
Patrick O’Brien, UK Retail Research Director at GlobalData, a leading data and analytics company, offers his view:
“It is notable, that its announcement is aimed not at its customers, but at its investors, who are also invited to a briefing on the strategy on Friday. It is logical though, as investors are the ones who are driving companies to be more sustainable in order to meet their own sustainability criteria, rather than shoppers.
“While surveys reveal it to be a growing area of consumer concern, there is scant evidence that, for the moment at least, sustainability and other ethical concerns are usurping price as the key purchasing driver. The continued sales growth of boohoo despite revelations of its supply chain issues and the meteoric rise of the highly secretive, but suspiciously cheap fast fashion retailer Shein, show that climate change does not equal consumer change…yet. Retailers though are rightly wary of climate change becoming a much more decisive issue with consumers in the years to come, with rental and, more importantly, resale fashion starting to gain traction.
“Like climate change itself, leaving it too late to start making changes to supply chains is not a good idea when the tipping point may be reached soon.”