- Innovation: The pursuit of novel product categories is particularly important for larger firms at 35.48%.
- Risk Mitigation: A focal point for 32.26% of larger entities, reflecting insights gleaned from recent global supply chain upheavals.
- Smaller ventures place a higher emphasis on sustainability (29.79%) compared to their larger counterparts (19.35%), indicative of escalating consumer demands for environmentally conscious products.
Unique hurdles faced by smaller enterprises
Among respondents who cited "other" as their reason for not engaging in international sourcing (15.91%), small businesses were predominant. Feedback revealed a preference for local goods, capacity limitations, and financial hurdles as reasons for staying domestic.
Sustainability initiatives halted by complexity and ambiguity
Despite rising consumer expectations and regulatory mandates, sustainability initiatives appear uneven across the sector:
- Nearly 69.23% of all companies reported advancements in sustainability over the previous year; this figure climbs to 78.38% among larger firms due to increased resources.
- Principal obstacles encompass scant resources, conflicting priorities, and apprehensions about the reputational dangers linked to greenwashing.
- One participant remarked on the challenges faced by small teams in addressing sustainability concerns amidst other pressing responsibilities.
Drivers propelling progress are identified as:
- Consumer Influence: Noted by 11.61% across various company sizes.
- Defined Strategy and Objectives: A systematic approach was mentioned by 10.71%, with performance tracking being significant for 14.29%.
- Genuine Leadership Commitment: Small businesses surpass larger ones in reporting executive backing (28.57% vs. 21.43%), likely due to tighter internal relationships.
- Notably, small firms demonstrate equal commitment to establishing precise goals aligned with Net Zero ambitions (3.57%) when compared to larger organizations (3.93%).
Moreover, the sole B-Corp respondent was a micro-enterprise with fewer than ten employees, accentuating the potential for leadership in sustainability among small-scale ventures.
Obstacles to advancement
- Progress has been made, yet hurdles remain. The reluctance of businesses to embrace sustainability varies based on their size:
- Small Enterprises: The absence of consumer demand for sustainability (50%), other pressing business matters (32.14%), and the overwhelming nature of sustainability initiatives (42.86%) are principal concerns.
- Larger Corporations: A deficiency in explicit strategies or objectives (75%) stands as the primary impediment, with other business priorities and insufficient consumer demand each accounting for half of the responses (50%).
- Notably, a lack of genuine leadership is seen as a shortfall among major companies, with 50% recognizing it as an obstacle.
Investment in Sustainability: An industry at a crossroad
The textile and apparel sector appears divided on the matter of ramping up sustainability investments within the next year to a year and a half:
- 53.62% of those surveyed are gearing up to escalate their funding, while 46.38% do not intend to increase their sustainability budgets.
- Larger corporations are notably more inclined to augment their investment, with over 12% set to double their expenditure on sustainability initiatives.
- Smaller firms remaining on the sidelines attribute their decision to several factors: over half (54.9%) believe their current sustainability measures suffice, while others point to the absence of financial benefits (17.65%) or other pressing concerns
A strategic outlook for 2025
As the retail industry looks toward 2025, the survey emphasises the necessity for comprehensive transformation in sustainability practices. Effective collaboration, decisive leadership, and forward-thinking partnerships will be crucial in aligning environmental objectives with commercial imperatives.
The survey also reveals the shifting priorities of retailers as they navigate 2025, influenced by factors such as cost management, innovation, and the imperative to confront global challenges.
While smaller enterprises often lead the charge in sustainability initiatives, larger corporations are increasingly focused on risk mitigation. This dynamic sets the stage for substantial changes in both sourcing methods and sustainability strategies within the retail sector.
Source sourcing director Suzanne Ellingham said: "This is an incredibly important piece of work and one that offers a comprehensive look at sustainability practices and challenges across UK retailers, providing insights into the current state and future trajectory of the industry's environmental efforts. A diverse range of UK retailers, from micro-businesses to large enterprises, offer their insights into the sourcing practices providing a snapshot of the barriers and motivations shaping the industry today.
"As the retail industry heads into 2025, collaboration, transparency, and innovation will be essential for achieving meaningful sustainability progress. By pooling resources and sharing strategies, businesses can move beyond individual efforts to create systemic change. Brands and retailers must also embrace partnerships with government and regulators to develop practical, scalable solutions that balance environmental goals with business realities. With the right guidance and collaboration, 2025 could mark the turning point for sustainability in the retail industry."
Source Fashion discussed the report on a call in which it concluded sustainability is moving lower down the list of priorities for companies and as the effects of the Covid pandemic wear off, businesses appear less willing to shift their apparel supply chains out of China and wider Asia.
"UK fashion brands' sourcing and sustainability: A mixed bag in 2025 " was originally created and published by Just Style, a GlobalData owned brand.