Demand Forecasting
Effective demand forecasting is at the heart of sustainable retail. By leveraging advanced data analytics and AI, retailers can anticipate consumer purchasing with greater accuracy, taking into account factors like seasonality and purchase patterns by location.
This approach helps minimise overproduction at the beginning of the value chain, as well as reducing unnecessary waste downstream. Innovators like Moselle are pioneering solutions for this type of stock management, helping retailers predict and order optimised volumes of product. By doing so, retailers can simultaneously increase revenue and minimise their environmental footprint by reducing waste.
Returns Reductions
Industries like fashion and apparel suffer from extremely high levels of returns, with over a quarter of consumers returning an item in the last twelve months. Due to the high cost of washing and relisting, many retailers choose to send these items to landfill rather than attempting to resell them.
There are, however, a host of technologies broadly focused on two key areas: optimising the resale market and preventing returns. In the former, tech-enabled operations around automated relisting or fulfilment are growing rapidly. On the other hand, companies like Fit Collective fall into the latter category, offering solutions that enhance the accuracy of sizing and fit, thereby reducing the need for returns.
Waste Management
Given the scale of retail operations, managing the production and disposal of waste is a critical challenge in achieving sustainability. Traditional packaging materials like single-use plastics are not only carbon-intensive to produce but also have a myriad of secondary environmental consequences.
Alternatives such as reusable or biodegradable materials derived from sources like mycelium or naturally occurring polymers can substantially diminish retailers’ environmental footprint. These innovations not only mitigate waste but can also foster a circular economy, enabling materials to be reused or composted.
Shelf-Life Monitoring / Extension
When it comes to food, especially fresh produce, a substantial amount is prematurely discarded. Shelf-life monitoring and extension technologies can play a pivotal role in reducing food waste in the retail sector.
Using technologies like IoT-enabled sensors mean retailers can accurately monitor the freshness and quality of perishable goods throughout their supply chain. This also helps in timely inventory management, reducing the likelihood of overstocking or understocking. Additionally, innovations in smart-packaging can extend shelf-life by creating controlled atmospheres or releasing antimicrobial agents. These advancements not only contribute to reducing food waste but also enhance consumer satisfaction by delivering products at their peak freshness.
Sound Like You?
Our Innovation Advisory arm is the future-focused partner for global corporates and household brands such as Marks & Spencer, Associated British Foods, Warner Bros. Discovery, 7-Eleven, and TJX, helping to navigate uncertainty and drive growth in a net zero world. We’re not just investors – we’re retail specialists, committed to providing strategic guidance and introductions to help foster growth.
If you're an entrepreneur working in this area (we invest from pre-seed to Series A), we’d love to hear from you!
You can get in touch with us here.
