Blog: Leonie BarrieWal-Mart’s sustainability pledge

Leonie Barrie | 3 February 2010

While most industry observers have been unanimous in their praise of Wal-Mart's mega sourcing deal with Li & Fung, now that its full impact has had time to settle in there are some out there who are starting to question the retailer's true motivations. 

One of the biggest elephants in the room is where it leaves Wal-Mart’s recent pledges on sustainability. Signing a $2bn deal with Li & Fung seems to be taking a big step away from plans rolled out last July to get its suppliers to complete a Sustainability Index calculating the full environmental costs of making every product on the retailer's shelves. With Li & Fung bridging the gap between the factories and the retailer, it will be interesting to see how successful its efforts at transparency really are.

The outsourcing measure also seems to be at odds with Wal-Mart’s wider goals to increase the proportion of goods it buys directly from manufacturers, rather than through third-party procurement companies or suppliers. In January the retailer estimated that shifting to direct purchasing could reduce costs by 5% to 15% across the supply chain within five years.


BLOG

just-style market research sale

Are you planning for the year ahead and beyond? Well this week we’re offering great deals on some of our market research......

BLOG

Gearing up for the holiday shopping season

The volume of US apparel imports saw an increase in October on the prior year as retailers geared up for the holiday shopping season. Bangladesh booked the second highest growth behind India, reversin...

BLOG

Innovations to boost sustainability

Hong Kong-based textile and apparel giant Esquel Group, the world's largest woven shirt maker, is pushing ahead with the pursuit of sustainable and holistic quality. ...

BLOG

Sign up to try new re:source apparel sourcing tool for free

The old saying "Good things come to those who wait" is certainly true for re:source, the new suite of data-driven sourcing tools being developed by the team here at just-style....

just-style homepage



Forgot your password?