Sustainability isn’t only good for the planet, it’s good for the bottom line. That’s the message that the Independent Grocers Alliance (IGA) is sending to members in its adoption of Ratio Institute’s comprehensive sustainability program.
The Ratio Institute, a nonprofit dedicated to sustainable efficiencies, with U.S. offices in Santa Cruz, Calif., offers independent grocers a nationally recognized certification program, an education component and marketing materials needed to create awareness around their sustainability initiatives, IGA said yesterday.
Food retailers are among the highest energy users of all commercial building types, according to Ratio Institute co-founder Peter Cooke. With razor-thin profit margins, the average U.S. grocery store sells about $17 million in product annually but clears only $300,000 in profit, for a margin of 1.7%, he noted.
"Every dollar of energy costs reduced is equivalent to $18 in revenue,” Cooke explained. So, by implementing small practices that can save a store $15,000 a year, the potential revenue benefits could reach $270,000, exponentially improving an independent grocer’s bottom line, he said.
Sustainability Food Retail Certifications help stores meet goals by benchmarking performance, reducing costs and increasing margins through practices like waste and recycling management and energy efficiencies, IGA reported.
“This partnership with Ratio Institute presents a striking opportunity for independents to differentiate themselves in the market,” IGA CEO John Ross said in a statement. “Gen Z’s concern for sustainability creates a competitive edge, making independents more attractive to both future shoppers and staffers, provided operators act and then clearly communicate the steps they are taking on sustainability.”
The program is available now through the Retail Learning Institute, an online education organization serving more than 10,000 retail stores worldwide, IGA said. To learn more about the program, retailers are invited to join Ross and Cooke at noon Monday, July 25, for the webinar, “How Sustainable Practices Maximize Revenue For Independent Grocers.”
IGA is the world’s largest voluntary supermarket network with aggregate worldwide retail sales of more than $36 billion per year. The alliance includes over 8,000 Hometown Proud Supermarkets worldwide. IGA has operations in 46 states and more than 30 countries, commonwealths and territories.
