Brazil enters the green store era

PORTO ALEGRE, Brazil - Brazilian consumers are becoming increasingly selective, not only about the quality and place of origin of the products they purchase, but also when it comes to choosing the stores where they take their business.

Companies shown to respect the environment and that adopt ecologically sustainable practices are beginning to win over the general public.

The supermarkets operated by the franchise chains Pão de Açúcar, Walmart and Carrefour pioneered these efforts in Brazil. C&A, one of the world's biggest fashion retailers, also is betting on the so-called green stores. It already runs two green-oriented businesses - one in Germany and one in Brazil.

The trend took off in 2008, when Pão de Açúcar opened its first retail store to focus on socio-environmental concerns.

In these markets, everything has been planned to conserve natural resources, from construction materials to equipment and facilities.

Even selecting the land on which to build their stores takes into account these criteria. Preference is given to lots that are flat, so the land does not need leveling.

Electric power comes from natural sources, such as the sun, wind and water, to help reduce carbon emissions, one of the gases responsible for global warming. The company also mandates water recycling.

"The tendency is toward building more stores of this type," says Ana Caroline Fernandes Nonato, a researcher at the retail administration foundation of the Administration Institute Foundation (Provar-FIA) of the University of São Paulo (USP).

Retailers who follow socio-environmental precepts require an initial investment that is on average 30% higher than that of a traditional business. Still, consumer approval, along with the overall reduction in operating expenses, has spurred new ventures.

"The companies are making back their investment with the savings they generate," Nonato says. "The Pão de Açúcar Group has reduced its use of electricity and is emitting some 34,000 fewer tons of carbonic gas a year, which [to be countered] would require a re-forestation equivalent to 190 thousand trees."

It is not enough, however, for a store to proclaim itself sustainable. The commitment these companies make to the environment has to produce results.

"When this process started, there were some retailers calling themselves 'green' without actually engaging in any socio-environmental practices," says Ricardo Oliani, the coordinator of the Akatu Institute for Conscientious Consumption. "But the consumer started questioning these companies, so they in turn had to prove they were truly doing something."

The trend will not go away soon, Oliani said.

"Consumers realized they too can make a difference by becoming part of the process," he said.

And as market practices evolved, Walmart decided to become active in offering protections for the environment.

"We're in a learning curve," Christianne Urioste, Walmart's director of sustainability, says.

The company created a guide with 80 sustainable initiatives that can be adopted throughout the global franchise. At their green store in the Morumbi neighborhood of São Paulo, 63 of these activities already have been implemented.

Among the ecologically correct practices outlined by Walmart, the company intends to save 25% of its energy use and 40% of its water consumption.

To help ensure the company meets its goals, its display shelves feature lights that only illuminate when motion is detected. Walmart also reserves some of the best spaces in its parking lot for cars that run on bio-fuels.

"The objective is to show the consumer that he can also adopt similar practices at home so as not to use so much energy," says Urioste.

The result: The Morumbi store is the most popular in Brazil, with regular visits by student groups interested in learning more about the store's practices.

C&A also has received a positive response from consumers. In their so-called customer space, shoppers may obtain information on sustainability. The stores also display sustainable collections, such as flip-flops made from the rubber of recycled tires and clothes made from plastic bottle threads.

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