What does it mean when fast fashion goes green?

Often the object of criticism for environmental advocates and enthusiasts, a handful of fast fashion retailers launched green initiatives earlier this year.

Last month, Haute Mess reported that retail giant Target announced a sophisticated plan to revamp its stores and increase sales, which includes a series of goals to better the environment.

Target revealed a new forest products policy and goals, including having full visibility into the wood contained in or used to make products sold by Target or used in its operations; implementing policies, practices and tools that facilitate the management of raw materials throughout the supply chain and across operations, and actively supporting efforts that prevent the destruction of forests and other natural resources,” reports WWD.

“Last year, Target introduced its reliable sourcing aspirations, which included a commitment to sourcing wood from well-managed forests. The retailer pledged to source for Target’s own brands wood from well-managed and credibly certified forests, and whenever possible, from post-consumer recycled materials.”

WWD also reports that Target will implement its policies beginning in 2018, with “a goal to have six of Target’s owned brands fully compliant with the forest products policy by 2022.”

The first products the retail giant plans to revamp are those containing wood or paper-based materials, like tissues and paper towels, wrapping paper, furniture components and clothing, according to WWD. This includes brands such as Cat & Jack, Pillowfort, Threshold and Smith & Hawken.

“This policy comes after Target announced its commitments to responsible sourcing, which focuses on improving worker well-being, achieving net-positive manufacturing and deriving key raw materials from ethical and sustainable sources. The retailer in January announced a chemical policy,” WWD continues.

Kelly Caruso, president of Target Sourcing Services, tells WWD that the retailer also plans to “target the rayon used in apparel, which comes from viscose, a forest product.”

“We’ll be working on the brands’ packaging, too,” Caruso continues.

The new forest policy comes a couple years after the retail giant announced that palm oil, which is “used in its owned brand food, personal care and household cleaning products, will be fully traceable and sustainably sourced by 2018, or sooner, according to WWD.

“When the retailer moves from raw materials to commodities such as beef and soy, it will look for ways to achieve zero net forestation.”

In 2012 Target also aimed to reduce the environmental impact of its production practices.

“Target piloted 10 best practices in three high-volume textile mills in China for a year. Realizing significant savings in water energy and materials, Target expanded the pilot to two additional Chinese cities in 2013 and is hoping for similarly positive results,” WWD writes.

Target’s forest products policy goal at a glance [source: A Bullseye View, Target’s official blog]
Swedish fast fashion giant H&M launched its Bring It On campaign in January 2017 as part of its Garment Collecting program, which began in 2013.

“Nothing is too torn, worn or used to get a second life. Not your lonely sock, your worn-out dress or your ripped sheet. Yet tons and tons of textiles—that could’ve been reused or recycled—are thrown away with household waste. Being one of the world’s largest fashion companies comes with great responsibility, and that’s why we launched our global garment collecting initiative in 2013. You bring your garments, we give them a new purpose. Together we can close the loop on fashion,” H&M’s website explains.

“We believe that clothes deserve better than to end up in landfills. So, for our newest conscious initiative we made two new designs in 500 unique pieces – entirely out of used denim. Because great fashion can be made from old clothes.”

Consumers can bring their unwanted garments to any H&M store to be repurposed.

“The garments collected that cannot be distributed as second-hand goods will either be converted into other products, such as cleaning cloths and upcycled items, or ground down and used in the construction or automotive industries as padding and insulation. Some garments get a new chance as textile fibers. They will be spun into yarn and used in the new H&M Conscious range,” the site continues.

“During the process, nothing goes to waste. The metals from buttons and zippers are also recycled. Even the dust is taken care of. It is pressed into cubes that goes to the paper industry as a co-product to cardboard. The very last remains of the collected garments are burned and turned into new energy.”

Garments part of the retailer’s Conscious range are denoted with a green label that reads “CONSCIOUS” on H&M’s website. The company insists it does not profit from any of the returned textiles.

“Revenue generated from collected items is donated to charity and invested in recycling innovation,” the website reads.

[source: H&M]
But, attorney and famed fast fashion critic Julie Zerbo, the voice behind The Fashion Law, argues that this is all a part of greenwashing: “the promotion of green-based environmental initiatives or images without the implementation of business practices that actually minimize environmental impact (or any of the other negative effects of fast fashion).”

“[Greenwashing often includes misleading customers about the actual benefits of a product or practice through misleading advertising and/or unsubstantiated claims. And swearing off the use of animal products.”

Last year, Nasty Gal, a web-based fast fashion retailer and notorious copycat, announced it would no longer continue to sell any items made with angora rabbit fur, after People for the Ethical Treatment of Animals (PETA) “conducted an investigation of the angora wool industry, leading to allegations of harsh and inhumane conditions in which the rabbits used for angora are treated,” according to The Fashion Law.

“Much like H&M’s well publicized recycling efforts and its ‘Conscious’ Collection, and Zara’s new eco-friendly stores, such green efforts–including those involving animals–tend to come with downsides of their own, such as alternative motives, aimed at creating a pretty picture in the face of significant problems at the foundational level of such business models.”

Zerbo insists that fast fashion inherently has a negative environmental impact; eye-catching campaigns that claim to be environmentally conscious are really marketing strategies aimed at attracting consumers.

“Fast fashion is a dirty industry, second only to the oil industry, according to recent reports. In order to keep costs low, fast fashion suppliers and even the big-name retailers, themselves, operate in ethically questionable ways. As we have seen in a number of recent lawsuits, they fire pregnant employees to avoid paying health insurance costs (hey, Nasty Gal). They discriminate against transgender employees (hey, Forever 21). They target shoppers based on race (that’s you, H&M) and employees based on religion (and you, Zara),” The Fashion Law writes.

“Their suppliers routinely bypass important quality control and manufacturing health/safety standards because these practices are costly to implement and monitor and that would cut into their bottom line. Hence, the toxic chemicals in clothes, the frequent employee hospitalizations and the increasing number of fires and buildings collapsing.”

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Retail giant Target to expand fashion departments, technology in 2017

Over the next three years Target Corp. will spend $7 billion to renovate more than 600 stores, according to WWD.

“[The stores] will look and function differently. They’ll be reconfigured with more space for fashion storytelling and table settings in home. They’ll be digitally connected,” the retail giant’s chairman and chief executive officer Brian Cornell tells WWD.

“Order pickup and bridal registry in 2018 will touch 250 stores — 600 by 2019, and that’s just the beginning.”

Target shoppers on Black Friday, 2016 [source: Target Corporate]
The renovations come on the heels of a “weak quarter,” according to KSTP.

During the past quarter, which includes the holiday season, Target’s profit fell 43 percent “with strong online sales failing to offset weakening business at its stores,” according to KSTP.

“Target’s stock tumbled more than 12 percent and rattled Wall Street, as shares in Walmart, Macy’s and other retailers fell as well.”

Cornell also tells WWD 2016 “was not our best year,” and explains that, not only will the corporation spend $7 billion on a capital investment program to combat fallen profits, it will also “sacrifice $1 billion in annual operating profit this year to grow sales faster and capture market share against better-performing rivals such as Walmart Stores Inc., as well as off-pricers such as TJ Maxx.”

Children wearing Cat & Jack, a successful new brand by Target [source: Target Corporate]
The investments in part will go towards the launch of 12 brands within the next two years, according to WWD, that will represent more than $10 billion of Target’s sales. This is thanks to the success of Cat & Jack, a new children’s brand, that is expected to produce $1 billion in sales in 2017.

“The majority will be in Target’s home and fashion categories, which represent $26 billion in combined sales,” according to WWD.

When deciding which brands to launch, Cornell explains to WWD that the corporation really listened to consumer wants and needs.

“In some cases, it will be a new branch or a relaunch of an existing brand,” Cornell tells WWD.

“The consumer told us that some of our brands have gotten a little tired and a little bit old. We’ll go from a series of labels to a collection of brands. We now have a portfolio with a lot of labels but very few brands.”

On Monday, March 6, Target’s stock closed at $56.11, falling over 16 percent from the week before. Despite this downward trend, Cornell asks shareholders to “make an investment to build a strong company for the future,” according to WWD.

“Our goal today is to demonstrate that the investments we’re making are the right decisions for the long term.”

Inside Target’s small format store at Packard’s Corner near Boston University [source: Arrowstreet]

Though Target’s net earnings for the fourth quarter, which ended January 28, “plummeted 42.7 percent to $817 million from $1.4 billion a year earlier” and “sales for the three months declined 4.3 percent to $20.69 billion,” leaving the company with “an earnings drop of 18.6 percent for the full year, to $2.74 billion, on a sales decline of 5.4 percent, to $20.6 billion,” according to WWD, it found great success in their 32 small format stores.

Cornell tells WWD that “units sales per square foot are higher than average,” and because of this, “Target is ramping up the rollout with 30 new units this year with a goal of 100 set for 2020.”

Outside a small format Target store [source: Arrowstreet]

While all 1,800 of Target’s stores “are within 10 miles of 85 percent of customers,” according to WWD, Cornell insists that the small format stores “expand the corporation’s footprint in in key urban areas and college campuses” in part because they are “customized for each community,” as opposed to the typical, full-line stores.

“In the last six months we’ve opened stores in Manhattan, Queens and Brooklyn. You can expect to see more and more,” Cornell tells WWD.

“It’s time to accelerate this new format.”

When it comes to full-line stores, however, it is quality over quantity. Instead of opening in new locations, the corporation hopes to renovate “old and tired” stores that have not been updated in 10 years, according to WWD.

“Our supply chain has been a major focus,” Cornell tells WWD.

“We’re slow and we have too much inventory. We’re changing how we move product…We’ll operate with less inventory, less working capital and better shelf availability.”

Cathy Smith, Target Corp.’s executive vice president and chief financial officer, tells WWD the corporation “expects a low- to mid-single-digit decline in comparable sales and earnings per share of 80 cents to $1.” Smith also predicts earnings per share (EPS) of $3.80 to $4.20 in 2017.

“We’re positioned to deliver superior Return On Invested Capital over time,” Smith tells WWD. “Let me be clear, this will be a multiyear, multiphase program.”