The business of climate change: supermarkets
Analysis of the Retail Food "in the Report" The Business of Climate Change: Challenges and Opportunities "Cabinet Lehmann Brothers. As already mentioned, we have decided to treat this report in various parts. This will be dedicated to the following question: What are the consequences of climate change on the distribution sector?
The big agri-food distribution:
Climate change is estimated at 2.5 ° C for the next 100 years. According to the report, a new method will result clearly favouring fresh products. The great advantage for the distribution will be selling more fresh produce: they allow for a greater margin if inventory management happens to limit the mess (not fresh products sold) to a minimum.
The increase in "environmental" taxes (such as taxes on the emission of greenhouse gases) will have a considerable impact on advance payments, which will fall on the consumer in the form of a price increase and BIP presumed decline and revenues would not be conducive to sales. In addition, consumers will be retissant to the idea of using their cars to travel to supermarkets since the fuel is expensive. These three factors have a significant impact on the turnover of the supermarkets.
Increases in transportation costs (through taxes on fuel, for example) will bring large retail chains to turn to a network of local suppliers. This is hardly exists today. Previously signs preferred major distribution centers responsible for supplying supermarkets in a wide perimeter. With a sea level higher, the price of real estate will increase and the companies will be forced to build suitable premises for a possible flood situation. All this will require additional investments.
In large retailers in general, seasonality plays a big role. Above all, the garment sector will have to leave collections adapted to the time that will be difficult especially for global companies. In various geographical areas, the weather will succumb to significant changes with extreme temperatures. The textile industry will have the same problem that the food industry: for the moment, it maintained its margins by the system of "global sourcing" with supplies designed for large perimeters. But it can not fall back on a network of local supply. It will then be for consumers to assume additional fees indirectly through higher prices. All costs related to energy are sensitivities to grow.
In general, large retailers should expect greater volatility in consumer demand and an increase in distribution costs and operating expenses. This will require greater flexibility in logistics and long-term solutions favorable to the environment.
Analysis of the Retail Food "in the Report" The Business of Climate Change: Challenges and Opportunities "Cabinet Lehmann Brothers. As already mentioned, we have decided to treat this report in various parts. This will be dedicated to the following question: What are the consequences of climate change on the distribution sector?
The big agri-food distribution:
Climate change is estimated at 2.5 ° C for the next 100 years. According to the report, a new method will result clearly favouring fresh products. The great advantage for the distribution will be selling more fresh produce: they allow for a greater margin if inventory management happens to limit the mess (not fresh products sold) to a minimum.
The increase in "environmental" taxes (such as taxes on the emission of greenhouse gases) will have a considerable impact on advance payments, which will fall on the consumer in the form of a price increase and BIP presumed decline and revenues would not be conducive to sales. In addition, consumers will be retissant to the idea of using their cars to travel to supermarkets since the fuel is expensive. These three factors have a significant impact on the turnover of the supermarkets.
Increases in transportation costs (through taxes on fuel, for example) will bring large retail chains to turn to a network of local suppliers. This is hardly exists today. Previously signs preferred major distribution centers responsible for supplying supermarkets in a wide perimeter. With a sea level higher, the price of real estate will increase and the companies will be forced to build suitable premises for a possible flood situation. All this will require additional investments.
In large retailers in general, seasonality plays a big role. Above all, the garment sector will have to leave collections adapted to the time that will be difficult especially for global companies. In various geographical areas, the weather will succumb to significant changes with extreme temperatures. The textile industry will have the same problem that the food industry: for the moment, it maintained its margins by the system of "global sourcing" with supplies designed for large perimeters. But it can not fall back on a network of local supply. It will then be for consumers to assume additional fees indirectly through higher prices. All costs related to energy are sensitivities to grow.
In general, large retailers should expect greater volatility in consumer demand and an increase in distribution costs and operating expenses. This will require greater flexibility in logistics and long-term solutions favorable to the environment.
posted by news of france at
7:58 AM
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