Retail Waste Management: Best Practices for a Sustainable Future

Importance and Benefits

Retail waste is a huge problem around the globe. In the US, the retail industry contributes tons of waste. Over 32 million tons of food is dumped in landfills, representing a massive misuse of resources and a significant source of potent greenhouse gases. 92 million tons of textiles are scrapped in the fashion sector. The most problematic retail waste is the billions of tons of plastic packaging sent to landfills or dumped into the ocean. These figures highlight retail waste’s environmental and economic impact, underscoring the need for retail sustainability.

Effective waste management in retail stores delivers numerous benefits. Optimizing resource use primarily safeguards the environment, minimizing landfill waste and reducing carbon footprints. It also optimizes resource allocation, resulting in significant cost reduction. Finally, it boosts brand image, especially when there’s a growing population of eco-conscious shoppers.

5 Most Common Types of Retail Waste

The retail industry remains one of the most diverse and widespread. In the US alone, there are over half a million department stores, specialty shops, supermarkets, boutiques, and convenience stores. These are the wastes those facilities produce:

1. Packaging Waste

Because practically every product is wrapped in some form, packaging is one of the biggest contributors to retail waste today. What makes this type more problematic is that it’s often single-use. Here are some examples:

• Paper products (e.g., corrugated cardboard, napkins, receipts)
• Plastics (e.g., single-use bags and wraps, styrofoam packs, containers)
• Glass (e.g., jars, wine bottles, pharmaceutical containers)
• Metals (e.g., steel or aluminum cans, tin foil linings, Drawn and Redrawn (DRD) containers)

2. Food Waste

Caused by overstocking, improper storage, and expiry or sell-by dates, food waste has become troublesome. Experts say 30% of food in groceries is thrown out, amounting to millions of dollars annually. In a world still plagued by hunger, this is more than just an industry issue.

3. Damaged or Unsold Inventory

Retailers deal with products that are damaged, unsold, or returned. Since most of these can’t be resold or recycled, they go straight to landfills. Here are some examples:

• Seasonal and holiday products
• Apparel and footwear
• Furniture and home decor
• Beauty and personal care products
• Equipment parts

4. Electronic Waste

This refers to discarded electronic devices and components through unsold items, defective products, and outdated equipment. Proper retail waste management is crucial because these often have toxic metals, such as lead and mercury, which can pollute soil and water.

5. Hazardous Waste

Hazardous waste management for retail stores is vital due to the substantial threats many products pose to people and the environment. Aside from dangerous metals from e-waste, here are other products that need an industrial waste level of handling:

• Chemical-based cleaning agents
• Pesticides, herbicides, and fertilizers
• Aerosol products
• Ink cartridges and toners
• Paints, solvents, and thinners
• Unused or expired medications
• Batteries

Process of Retail Waste Management

Businesses can significantly reduce waste by following a structured plan based on established waste management systems. Listed below are the key steps that can help companies lower costs, reduce their negative impact on the environment, and reach their sustainability goals:

Step 1: Identify and categorize waste produced by the facility.

This step helps retailers understand their waste streams better for developing targeted reduction strategies. Assess the type, quantity, and sources of waste, then categorize them into the following:

• Recyclable
• Compostable
• Hazardous
• Landfill-bound

Step 2: Set waste reduction and prevention goals.

The primary goal of any type of waste management is to address the problem at its source. A proactive strategy, this step minimizes the amount of garbage that enters the waste stream. It can be done through these steps:

• Prevent overstocking and product expiration.
• Implement First-In, First-Out (FIFO) inventory systems.
• Shift to durable, reusable, and recyclable options.
• Work with suppliers to reduce packaging waste.
• Donate surplus to local charities or food banks.

Step 3: Plan waste segregation and collection methods.

Establish a clear and organized system for handling waste based on the planned reduction and prevention strategies. Since waste categorization was accomplished in the first step, focus on the following best practices for this phase of solid waste segregation and collection:

• Label bins and collection points clearly and consistently.
• Establish regular collection schedules based on volume.
• Choose appropriate transportation vehicles or equipment.

Step 4: Implement recycling and reuse programs.

This step focuses on building a circular economy, diverting waste from landfills, and reducing the company’s carbon footprint. Here are some of the most crucial facets of this type of waste management program:

• Provide clear instructions about what and how to recycle.
• Find ways to reuse materials within the store, such as repurposing cardboard boxes for internal shipping and refurbishing damaged goods for resale.
• Engage with customers about the company’s initiatives, such as promoting reusable bags and offering incentives for participating in certain programs.

Step 5: Adopt appropriate waste disposal methods.

Because not all waste can be reduced, reused, or recycled, see to it that the rest is handled responsibly. While some go straight to the landfill after compacting, others should be treated accordingly, depending on their characterization. Here are some key considerations:

• Cost of disposal methods
• Environmental impact
• Safety of employees and the public
• Waste disposal vendors

Step 6: Train employees on waste management practices.

The most well-designed retail waste management system can fail when employees aren’t informed of the best practices. Workplace training ensures that everyone across the organization understands their roles and responsibilities.

Aside from providing different training methods (e.g., on-the-job training, online modules, visual aids), encourage employee feedback and suggestions to improve the company’s waste management practices.

Step 7: Leverage technology for compliance management.

Aside from tracking, analyzing, and optimizing waste management processes, digital solutions ensure compliance by streamlining documentation, report generation, and the submission of relevant papers to regulatory agencies.

Remember that failing waste management in retail can result in severe environmental consequences, not to mention legal and reputational problems for the company, which makes waste management software a must-have in this day and age.

Overcoming Challenges in Retail Waste Management

Despite careful planning and strategizing, retail businesses still encounter many problems when managing waste because of its inherent complexity. Get to know the most common ones and how to address them effectively:

• High disposal and waste management program costs – Implementing sustainable programs requires significant upfront investment. Aside from optimizing inventory, partnering with specialized firms and the government can lower these.
• Difficulty in overall logistics – Multi-layered materials (i.e., those with plastics and paper components) are difficult to recycle, store, and transport. Working with specialized partners is the way to go.
• Low customer participation – Many people still prefer convenience over sustainability. Aside from consumer education, offering incentives and discounts can help engage them.