Asda plans to launch its first green Rollbacks in the next few months in an ambitious attempt to link its sustainability and low price agendas.
The retailer has promised to cut prices on own-label products that have gone through its packaging reduction programme.
By using less packaging, the products had been cheaper to produce, said Asda head of corporate policy for sustainability and ethics Julian Walker-Palin.
These savings had been ringfenced to invest back into price, he said, adding that Asda has saved £10m on packaging since signing up to the Courtauld Commitment in 2005.
“Our next task is to decide which products are best to go after in terms of price,” he said, though refused to go into detail.
The retailer would also be encouraging brand-owners who had made similar savings through packaging reduction to look at cutting prices. “At a very fundamental level this is just what we do,” he said. “We are an everyday low-pricing retailer selling high volumes at low margins. Waste defeats our business model so it is natural we would seek to reduce waste and cut prices.”
Asda would meet its target of reducing own-label packaging by 25% by the end of 2008, said Walker-Palin.
It was now looking at ways of cutting food waste, he said. However, this did not always sit easily with lighter packaging. For example re-sealable packs for cheese help keep the product fresh but are heavier than standard packs.
“There are so many parts of the debate such as teaching kids how to cook, do you shop with a list? All this has an impact on waste,” he said.
The retailer has promised to cut prices on own-label products that have gone through its packaging reduction programme.
By using less packaging, the products had been cheaper to produce, said Asda head of corporate policy for sustainability and ethics Julian Walker-Palin.
These savings had been ringfenced to invest back into price, he said, adding that Asda has saved £10m on packaging since signing up to the Courtauld Commitment in 2005.
“Our next task is to decide which products are best to go after in terms of price,” he said, though refused to go into detail.
The retailer would also be encouraging brand-owners who had made similar savings through packaging reduction to look at cutting prices. “At a very fundamental level this is just what we do,” he said. “We are an everyday low-pricing retailer selling high volumes at low margins. Waste defeats our business model so it is natural we would seek to reduce waste and cut prices.”
Asda would meet its target of reducing own-label packaging by 25% by the end of 2008, said Walker-Palin.
It was now looking at ways of cutting food waste, he said. However, this did not always sit easily with lighter packaging. For example re-sealable packs for cheese help keep the product fresh but are heavier than standard packs.
“There are so many parts of the debate such as teaching kids how to cook, do you shop with a list? All this has an impact on waste,” he said.
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