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Socially responsible retailing from Walmart and Patagonia

September 12, 2011 by Laurel Tielis — Author and Professional Speaker, Laurel Tielis & Associates

Patagonia has long had the reputation of being a socially responsible company. Walmart not so much. But this week, I think they're telling a similar story. Each company is offering buying choices that positively impact on its core customer, as well as the community at large.

Shopping's no fun when you're out of funds

Walmart, in response to cash-short customers, has given them an early Christmas gift by bringing back layaway for the holiday season. Shoppers concerned with higher prices across the board–food, gasoline, energy–told the retailer they are more comfortable paying cash.

Layaway features a small setup fee, and a down payment on items; there are no interest charges. Over time, customers pay for the goods in full. This beats buying on a credit card, then struggling to pay off charges and sky-high interest rates. Shoppers have learned that easy isn't best, when it comes to credit.

So while Walmart's reason for bringing back layaway may not be socially responsible–the retailer has been struggling with falling sales for nine consecutive quarters–the result is. As the 2008 recession showed, the economy benefits when people only buy what they can afford. Will Walmart make money from the layaway plan? Probably not directly, but they've already reaped a huge bonus in the form of positive publicity.

Buy from Need–Not Greed

Founder and owner of the outdoor wear-and-gear company Patagonia, Yvon Chouinard, is asking customers to pledge to reduce, repair, reuse, and recycle its products to help the planet and increase sustainability.

Clearly, this is a one-off in retail. Many companies offer lifetime guarantees for their products, but Patagonia has gone one step farther. Rather than resist reselling, it's helping customers to do so. It has partnered with eBay to open an online marketplace called Common Threads Initiative. Customers reselling genuine Patagonia products get a badge on their posts, and are included in a new section of the company's website called used clothing & gear.

Is Patagonia making it better for everyone? I think so. And in doing so, it's building a better business.

What do you think? How do you show the world at large, and your customer base in particular, that you are an ethical and socially responsible business?

About Laurel Tielis

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