By Scott Hawthorne, founding director at Skips and Bins
From piles of discarded packaging to heaps of unsold goods and spoiled food, the retail industry produces an astonishing volume of waste. In fact, in the UK alone, the sector generates approximately 5 million tonnes of packaging waste, a significant portion of which is from retail products. Food waste is particularly troubling, with UK retailers wasting around 200,000 tonnes of food each year, much of it still edible.
Customers are making it clear—they want brands that care about the planet, and they’re using their wallets to prove it. For retailers, the stakes couldn’t be higher – landfills are overflowing, waste management costs keep climbing, and the pressure to act is impossible to ignore. Dealing with waste isn’t just the right thing to do anymore—it’s a matter of survival, both for keeping profits steady and for earning the trust of an eco-aware public.
SkipsAndBins.com, the skip hire expert, takes a closer look at the existing challenges, areas for improvement, and how major retail players are tackling the change.
What’s driving change in the sector?
Consumer expectations are a key factor, with surveys indicating that nearly 78% of UK shoppers prefer brands that prioritise environmental sustainability, and 55% are willing to pay more for eco-friendly brands.
Scott Hawthorne, Founding Director of Skips and Bins adds: “Tackling retail waste is more than just a challenge—it’s an opportunity to completely rethink how the industry functions. When sustainability is woven into every part of a business, from designing products to how they’re sold, it doesn’t just cut waste. It transforms the brand into a leader in environmental responsibility, inspiring trust and loyalty while setting the standard for others to follow.”
Government policies are another major driver. Regulations like the Plastic Packaging Tax have introduced financial penalties for excessive use of non-recyclable materials, forcing businesses to rethink their reliance on single-use plastics.
Reducing waste is important for both the environment and businesses. Companies also miss out on potential earnings when things aren’t managed well. By reducing excess inventory and choosing eco-friendly packaging, businesses can help the environment and also boost their profits.
Challenges and areas for improvement
Packaging is still a big problem. Although many stores are trying to cut down on plastic by using biodegradable options or promoting reusable materials, these changes often don’t go deep enough. To truly make a difference, we need to seriously rethink how packaging is designed, focusing on reducing waste right from the beginning.
Overproduction, too, is a major issue caused by poor demand forecasting and the urge to keep extra stock to avoid empty shelves. This leads to a cycle where surplus goods are wasted in landfills or burned.
Predictive analytics and AI technologies have significant potential to enhance business operations. By leveraging these tools, companies can better align their production with customer demands, greatly minimising the risk of excess stock.
Some retailers, like Zara, have already introduced garment collection schemes to encourage recycling and repurposing, however, these initiatives remain the exception rather than the norm. Scaling up such programs could foster a circular economy where waste becomes a resource rather than a burden.
Major players like Marks & Spencer and Tesco are taking action, too. Marks & Spencer’s “Plan A” aims for net-zero carbon emissions and significant reductions in landfill waste. Tesco, on the other hand, collaborates with charities like FareShare to ensure surplus food reaches those in need rather than being thrown away. These efforts show that progress is possible, but they remain isolated pockets of success rather than industry-wide transformations.
Hawthorne notes: “The retail industry has made some progress, but it often feels like things aren’t moving quickly enough. Waste is a massive challenge—far too big for any one retailer to tackle alone. What’s urgently needed is a collective effort across the industry. Businesses must come together to share insights, swap best practices, and forge creative partnerships with environmental organisations and tech innovators. Only through this kind of collaboration can we develop solutions that are not only impactful but also scalable enough to create real, lasting change.”
Conclusion
The path forward for the retail sector is clear: sustainability must become a central pillar of its operations. As consumers grow more environmentally conscious and regulations tighten, the risks of inaction will only increase. Retailers that fail to adapt risk more than just reputational damage; they risk losing their place in an increasingly competitive market.
This is no longer a question of whether the industry can afford to act—it’s about recognising that inaction comes at a far greater cost. By embracing innovation, collaboration, and bold thinking, the retail sector can turn waste reduction into a defining success story.
The time to act is now. Whether it’s rethinking packaging, optimising supply chains, or expanding recycling programs, the opportunity is ripe for the retail industry to lead the way in building a more sustainable future.
