It’s no secret that eCommerce sales have skyrocketed since the beginning of the pandemic. US eCommerce jumped +49% in April, with online grocery delivery as the largest driver of this growth, surging +110% between March and April. While these numbers are great for our overall economy, an increase in online delivery services comes at an environmental cost.
In theory, buying online is actually greener than traditional in-store shopping. This is primarily because parcel carriers use a more efficient delivery system than a consumer driving to a store. That, combined with the fact that the carbon footprint of a website is smaller than that of a brick-and-mortar store, generally means that it is better for the environment to shop online.
However, your carbon footprint increases substantially when you shop online and opt for rushed delivery. This increase results from air travel (goods being flown to you to meet rush delivery), and the extra packaging and delivery cost that occurs when stores send you items in individual packages to get them to you faster.
Which brings us to the biggest culprit of all, the retailer that we all love (and love to hate)…. Amazon.
Amazon just released its sustainability report and it was, um, less than impressive.
1. Tech’s Social Responsibility
Amazon’s Sustainability Report:
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Background: After scrutiny around the environmental impact of its business model, Amazon made an ambitious pledge last year to reach net-zero carbon emissions by 2040.
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Details: Amazon just released its latest sustainability report card, showing that the retail giant generated 51 million metric tons of carbon dioxide in 2019! This was a +15% increase from last year. Sales growth (+22%) outpaced emissions growth which Amazon claims is an indication that its operations are becoming more efficient. The company also announced that they will be shelling out $2B for a venture-capital fund to support climate-focused technologies.
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Background: Facebook has been under fire after declining to remove an offensive post from the President following George Floyd’s death.
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Details: Verizon is the largest company to join the boycott against Facebook after the Anti-Defamation League released an open letter that mentioned that it had found an advertisement for Verizon “appearing next to a video from the conspiracy group QAnon drawing on hateful and antisemitic rhetoric.” This comes after large retail brands Patagonia, REI, Ben & Jerry’s & others pledged to remove all advertising dollars from Facebook until they are able to regulate hateful speech on their platform.
2. Traditional Retail Slump
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Background: Macy’s, like many other retailers, has been struggling during the Pandemic. The legacy retailer’s stores have been closed since March 18th, and although some are beginning to reopen, many of them remain closed. Macy’s shares are down 60% YTD.
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Details: The retailer is planning to cut 3% of its workforce and will expect to save about $365 million through the layoffs in fiscal 2020. Earlier this month, Macy’s announced that it has raised $4.5 billion to help weather the crisis.
Nike Reports Q4 Revenue Decline
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Background: At the beginning of the pandemic, Nike claimed that they were uniquely positioned to grow during the crisis. They are now reporting a loss as their stores around the world are temporarily closed.
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Details: Sales were down 38% to $6.31 billion from $10.18 billion a year ago. Despite a decline in overall sales, their direct-to-consumer business was strong, as digital sales grew 79% and were 30% of total revenue, a goal that was initially set for 2023.
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Background: Desperate times call for…Kanye West? Gap just announced that they plan to collaborate with Kanye West to deliver a co-branded line of apparel to the market in 2021. The 10-year partnership will give Kanye West an opportunity to create an affordable clothing line and will hopefully give Gap an opportunity to drive sales.
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Details: The collection of “Modern elevated basics for men, women, and children at accessible price points” will be available in-store and online in 2021. This deal only includes apparel and accessories; not sneakers. Gaps shares surged 16% after the news was announced.
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Xoxo Jackie
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