Article

Small changes make a big impact

Sustainability, energy efficiency and social responsibility have long been hot topics in the retailing industry. As retailers continue to look for smart solutions, kiosk manufacturers have the opportunity to make smart changes to their products that reduce negative impacts on the environment and appeal to earth-conscious consumers.

December 2, 2015

By Tricia Montgomery, vice president of product management & consumer experience, Coinstar at Outerwall Inc. 

Sustainability, energy efficiency and social responsibility have long been hot topics in the retailing industry. As retailers continue to look for smart solutions, kiosk manufacturers have the opportunity to make smart changes to their products that reduce negative impacts on the environment and appeal to earth-conscious consumers.  

According to the U.S. Environmental Protection Agency, retailers spend almost $20 billion annually on the cost of energy alone. For grocery stores in particular, eSource's Business Energy Advisor found energy costs can account for up to 15 percent of their operating budget and because grocery stores' profit margins are so thin—on the order of 1 percent—every dollar in energy savings is equivalent to increasing sales by $59. For virtually all retailers, this is an area where they are looking to optimize.

In addition, there’s a growing trend around consumers expecting companies to be responsible corporate citizens and reduce their carbon footprint. According to Nielsen, consumers are more likely to buy products repeatedly from a company if they know the company is mindful of its impact on the environment and society.

With retailers needing to implement smarter practices and consumers seeking more mindful companies, there is an opportunity for kiosk manufacturers to improve their sustainability practices – ultimately creating a better retail partnership. While it can seem like a daunting task, there are options:

• Look for efficiencies: Manufacturers can start by identifying where they have the biggest use of energy and determine ways to streamline. As an example, when evaluating design changes of its kiosks, Coinstar, a division of Outerwall Inc, identified an opportunity to eliminate the need for lighting on the lower section of its kiosks in order to reduce energy use, with no impact on how the kiosk functioned. Doing so also helped the company meet corporate energy reduction commitments. Since Coinstar rolled out the design change in 2014, the result has been a 29 percent decrease in overall kiosk energy use, saving money for the retailers as well.
• Target other areas of the company:If kiosk manufacturers demonstrate their commitment to decreasing energy use and improving sustainability overall, it can make them a more attractive partner for retailers – and physical updates to the kiosk aren’t the only way. As part of its Corporate Social Responsibility initiative, Outerwall measures its greenhouse gas emissions annually. During research of greenhouse gas emissions usage, the company discovered that the fleet of drivers who service the company's Coinstar kiosks was a major contributor to its greenhouse gas emissions. Since updating 85 percent of Coinstar's fleet of passenger vehicles to hybrids, in addition to other efforts, Outerwall has seen a 17 percent reduction in fuel use since 2010.

As the values of retailers and consumers increasingly become focused on minimizing environmental impacts, kiosk manufacturers will need to adapt. With the growing availability of sustainable solutions, all changes, big and small, can make a difference; decreasing energy consumption can have a major impact on the environment and the attention to sustainability can drive consumer loyalty. Ultimately, when kiosk manufacturers acknowledge shifting consumer trends – as witnessed in the sustainability space – and adapt accordingly, they’ll drive better retail partnerships overall.

Tricia Montgomery has been vice president of product management at Coinstar since September 2014, where she oversees product management and revenue.