This article appears in the Autumn 2023 edition of the Products of Change Magazine. To read it in its original format and check out all the content in the latest Sustainability Edit, click here.

In the spring of 2021, The Hut Group (THG) acquired the plastics recycling specialist Indigo Environmental in a move to bring its own plastics recycling operations in-house.

The acquisition took place in the middle of a spate of purchases that has seen THG buy-up businesses within its supply chain at a rate of knots. Meanwhile, under the Group’s THG x Planet Earth sustainability strategy, commitments have since been made to reach ‘zero waste to landfill’ by 2030, 100% of its own-brand packaging to be recyclable by 2025 and 70% of third-party brands by 2030, to recycle more plastic than it uses by 2030, and to have all suppliers committed to ethical sourcing standards by 2025.

In September this year, THG was even handed the EMEA Circular Economy Transition of the Year Award for an initiative to turn its unused Myprotein into fish feed.

Speaking earlier this year with Retail Week, THG’s chief executive Matthew Moulding explained how the Group had been buying up used PPE from hospitals and spoiled notes materials form the Bank of England to turn them into plastic pellets for reuse in society.

“Aside from the environmental impacts, this is also becoming an increasing revenue stream for us,” he said.

Increasingly, the UK retail scene is finding that sustainability initiatives need not come with the hefty price tag they are often misrepresented as carrying. In fact, sustainability initiatives can more than pay for themselves. In the case of The Hut Group, they can even be profitable, and there’ a whole demographic of shoppers driving that forward.

Generation aims

It’s with growing frequency that we hear the buying power held by Gen Z is increasing. In the United States, it reached more then $500 billion in recent years, while reports tell us that a significant majority of young adults are now willing to pay more for sustainable products. Meanwhile, the global resale market alone is expected to grow to $350bn in sales by 2027, up from $177 billion in 2022, according to thredUP.

In fact, in its 2023 Holiday Report, the online clothing resale platform finds that more than one in three shoppers plan to shop secondhand this holiday season for reasons of value for money during economic hardship, uniqueness, and sustainability.

Resonating with licensing audiences, thredUP also recently partnered with the pop culture merchandise specialist, Hot Topic to launch Hot Topic Replay, a resale programme allowing customers to shop secondhand products and resell their items for Hot Topic Credit.

“Hot Topic is a brand that has maintained cultural relevance across decades and their finger is on the pulse when it comes to younger shoppers who value self-expression and individuality,” said James Reinhart, eco of thredUP. “We’re thrilled to enable Hot Topic Replay and believe that entering resale will help Hot Topic build brand affinity among customers who are on the hunt for that unique band tee of collectable item, while also serving as a new growth channel for the business.”

Is sustainability converting at the till?

Despite its growth, resale and rental still remain but a slice of sustainability at retail. A November 2022 NielsenIQ study reminds us that while the majority of consumers do take sustainability into account when purchasing, it’s only between 3% and 6% that actually view it as their top driver of choice. This, however, won’t stop legislation making demands of the manufacturing and retail landscape and it becomes increasingly important that retailers do find the means of enabling shoppers to minimise their carbon footprint without increasing costs where there remains an unwillingness to pay a premium.

In April this year, Primark launched its first product range designed and made ‘to be re-loved and recycled’ using the retailer’s new Circular Product Standard – a standard based on principles established by the Ellen MacArthur Foundation.

A first for the fashion retail giant, the collection is made up form at least 95% cotton from the Primark Sustainable Cotton Programme with increased durability and recyclability built in. At the end of each garment’s life, products can be dropped off at a local textile donation point, currently available in Primark stores in selected markets.

The collection, according to Nicholas Lambert, circular product lead at Primark, “brings together years of work to create a new framework, with the ambition of enabling products teams at Primark and its suppliers to create more circular products designed with the end in mind.”

He continues: “This has led to the creation of our first circular collection of affordable wardrobe staples that customers can re-wear, repair, and ultimately recycle,” said Nicholas.

“This collection was created by a small group of our designers, buyers, and suppliers piloting our new Circular Product Standard and, while we know this is just one small step in our commitment to become a more circular business, we’re excited to now roll these new design principles across our business with more suppliers, allowing us to scale it up.”

The fact the initiative can now claim brand ambassador, Rita Ora, to its name is just a feather in the cap for taking ideas of better circularity to the public.

Aligning with the science

In truth, we’ve seen swathes of retailers make public their commitments to sustainability in recent years. Starting with Tesco earlier this year, a growing number of retail’s biggest players are aligning themselves with the Science Based Targets initiative with ambitions to reduce their scope 1, 2, and 3 greenhouse gas emissions to net zero by between 2030 and 2040.

The Hut Group itself is one among the latest to have its net zero targets validated by the SBTi, while even the High Street fashion and accessories brand, New Look is awaiting the nod for its own. The ability to drive profitability via sustainability, however, will remain at the heart of the retail approach, and innovating new developments in the circular economy will continue to sit atop of that.