Sustainable Retail Practices That are Leading Eco-Friendly Trends

The reasons for sustainable fashion’s explosive growth can’t be narrowed down to one factor. Although sustainable practices are great for the environment, and this can be some brands’ motivating factor, they also help drive brand loyalty, operational efficiency and long-term profitability.

To be sure, sourcing sustainable materials and components can be costly, but when a sustainability measure is implemented effectively, it can actually drive profits over time as ethical product design becomes more persuasive to a growing number of consumers.

According to McKinsey research, brands that make environmental, social and governance (ESG) claims with their products can see a 32% to 34% increase in repeat buyers over time. When tentree takes the extra time and costs to plant a tree with every purchase, for example, those additional resources may be offset by their ability to better acquire and maintain lifelong customers.

In a 2022 NYU Stern Center for Sustainable Business study, research found that 93% of those surveyed had either maintained or increased their sustainable purchases over the last year and experts expect this retail trend to only continue.

With the benefits of sustainable retail being so numerous, here’s a look at some of the core retail practices some brands are leveraging to better position themselves and their products as environmental-friendly alternatives to the status quo.

Circular fashion is becoming one of the most impactful ways for retailers to improve sustainability and unlock new revenue streams in the process. Just look at the secondhand apparel market, which is expected to hit $350 billion by 2028, reported the 2024 ThredUp Resale Report.

This quick-moving segment is growing three times faster than the overall fashion industry and retailers are taking notice. The same report notes that 94% of retail leaders say their customers are already buying or selling secondhand. The interest is there; brands just need to meet it with the right programs.

A prime example is Patagonia’s Worn Wear program. By encouraging customers to repair, share or recycle their gear, Patagonia has kept more than 120,000 items out of landfills. And perhaps even more importantly, it’s built a community that sees sustainability as a shared mission for the long haul.

Rolling out a successful circular program takes cross-functional planning. Brands need to evaluate product durability, set clear quality standards and offer strong incentives like store credit or early access. Data tracking is key, especially when it comes to measuring environmental impact and customer engagement.

Today’s most eco-innovative brands are rethinking what their products are made of and how they’re made. And it’s paying off.

The vegan fashion market is growing steadily, up 7.3% by 2032, predicts Coherent Market Insights, and brands that prioritize lower-impact materials like organic cotton, recycled polyester and bio-based fabrics are setting the pace for sustainable innovation. Some brands now source more than 90% of their materials from lower-impact alternatives.

Many sustainable organizations also have an eye on zero-waste manufacturing. According to the U.S. Environmental Protection Agency, every year, over 11 million tons of textiles end up in U.S. landfills. That’s roughly 2,150 pieces of clothing tossed every second.

Forward-thinking brands are flipping the script by partnering with suppliers who meet verified sustainability standards and by adopting full material traceability. Many are aiming for 100% transparency by 2025, ambitious as it sounds.

Luxury labels are leading by example. Stella McCartney has cut operational emissions by 76% and now runs 68% of its facilities on renewable energy. More than just “feel good goals,” these directives are proving that sustainability and profitability can go hand in hand when integrated effectively.

Digital transformation is also a major lever for reducing waste and building smarter, more sustainable fashion operations. Start with the basics: e-receipts reduce paper waste and open the door to better customer data. Digital showrooms and augmented reality (AR) try-ons help shoppers make confident decisions before they click “buy.” Some cosmetics and personal care brands, for example, use AR try-on tools that can help cut return rates by 25%.

On the backend, 3D prototyping and digital sampling can cut physical sample needs significantly. That means less wasted material, fewer emissions from shipping and lower development costs. These tools also power better demand forecasting and inventory planning, making it easier to avoid overproduction and the markdown cycle that eats into margins.

One brand doing this particularly well is tentree, a sustainable apparel company that plants 10 trees for every item sold. To scale efficiently while staying true to its values, tentree moved from spreadsheets and email chains to a centralized product lifecycle management (PLM) platform.

The result? Less time spent on admin, more time for creativity.

“Before, there were many essential manual tasks and it was such a shame when creative minds want to be sketching or coloring but had to deal with those tedious items,” said Lisa Lai, Associate Designer at tentree. “Now, those steps are quick, allowing time for creativity.”

By streamlining product development with digital tools, tentree improved speed to market and reduced errors without compromising its environmental goals. And it’s not just them: brands that embrace full-scale digitization often see a 15–25% boost in inventory efficiency within the first year.

When it comes to making a real impact on sustainability, optimizing the supply chain is one of the most powerful levers fashion retailers can pull. Local sourcing is a great place to start; it cuts down on transportation emissions, supports local economies and adds resilience against global disruptions.

And with transportation responsible for 14% of global greenhouse gas emissions, reports CENN, better logistics is good for the planet and for business.

For improved transparency, tools like digital product passports and carbon accounting software help brands track emissions, material sourcing and more in real time. And that’s more important than ever, as 73% of consumers say they’re willing to pay more for products from environmentally responsible brands, reported First Insight.

Ethical sourcing is equally essential.

What does that look like in the real-world? It means working with suppliers who meet high standards and holding them accountable through consistent audits and transparent processes. In today’s eco-conscious landscape, supply chain optimization is about efficiency, to be sure, but it’s also a brand strategy, a sustainability tool and a long-term business growth engine.

With more than half of global consumers now aware of greenwashing, or the idea that brands are falsely promoting “green” directives and goals, sustainability messaging and clarity is paramount. In fact, 55% of international shoppers say they’re actively scrutinizing environmental claims, reported YouGov.

The issue is ethical, but it’s also based in compliance. Laws like the FTC Act, the Lanham Act and standards from the Better Business Bureau hold brands accountable for misleading claims. That makes clear, credible messaging both a legal safeguard and a trust builder.

So how do the best brands get it right?

Education plays a huge role: many consumers want to make better choices but simply don’t know where to start. That’s where digital storytelling, social media and strategic influencer partnerships come in. With the creator economy expected to hit $500 billion by 2027, brands must vet influencers carefully to ensure their credibility aligns with the message.

It’s also worth remembering: sustainability storytelling doesn’t have to stop at the screen.

In-person experiences can deepen brand loyalty and build lasting communities. Zegna’s Villa Shanghai gives visitors a hands-on look at flax cultivation, helping them understand the process behind the product. Meanwhile, Finisterre turned a small London theater into a hub for film screenings, yoga classes, educational talks and more, creating a space where environmental values and community meet.

Retailers in any market can take note: customers are looking for brands that don’t just talk about sustainability. They want to connect with companies that embrace the same values they do.

With the rise of sustainability standards also comes improved technology platforms. Solutions like product lifecycle management software offer fashion brands the digital infrastructure they need to turn bold sustainability targets into measurable results.

Today’s PLM tools offer built-in capabilities for tracking materials, managing product lifecycles and increasing supply chain transparency all in one place. Instead of juggling spreadsheets and siloed systems, teams can collaborate, measure impact and make data-backed decisions that support both the planet and the bottom line.

Look at Rothy’s, for example. The sustainable footwear brand has recycled over 25 million plastic bottles to date, thanks in part to their use of PLM software that tracks materials from sourcing to end-of-life. That kind of traceability supports a true closed-loop model, where products are designed with repurposing in mind right from the start.

AI and machine learning are also playing a big role in next-gen sustainability. These technologies enable smarter forecasting, reduced waste and optimized resource use. Instead of reacting to problems after the fact, brands can use predictive insights to prevent them in the first place.

With the use of “single source of truth” platforms, like PLM, where data and workflow live together seamlessly, smart tech gives sustainability strategies the structure and scalability they need to drive real impact without sacrificing agility or growth.

Between rising consumer expectations, tightening regulations and increased competition, sustainable retail brands that are winning the green game are those that treat sustainability as a core business function. The days of ignoring the sustainability goals of customers, markets or partners have been replaced by a new standard in transparency.

That means embedding environmental thinking into every part of the operation, from design to sourcing to distribution. It also means setting real goals, measuring progress and holding teams accountable.

Today’s most agile brands need bold, integrated strategies that solve systemic problems and build lasting competitive advantages. Those who move now will create momentum that’s hard to catch up to. Those who wait risk falling behind.

The good news: the timing has never been better. Consumer demand, regulatory shifts and technology are aligning to make sustainable retail possible and profitable.