8 Sustainable Retail Strategies for 2026

Sustainability has become a significant concern among both retailers and consumers. A Unilever study reveals that a third of consumers are now buying from brands based on their social and environmental impact.¹ As government regulations, consumer expectations, and investor priorities shift, sustainability is no longer optional — it is a core driver of retail competitiveness.

Gen Z is more likely to adopt sustainable practices and uphold sustainable values than any other consumer demographic group.² A recent survey by ThredUp found that 64% of Gen Z consumers have purchased second-hand fashion items, and 73% are willing to pay more for sustainable fashion.³ With Gen Z’s spending power expected to exceed $12 billion by 2030, it’s no surprise that retailers are seeking ways to make their businesses more sustainable to attract these and other environmentally conscious consumers.⁴

A Pivot to a Circular Economy

The circular economy and sustainability go hand in hand. The goal of the circular economy, a common retail sustainability initiative, is to pivot away from mining resources, turning them into products, and then turning them into waste. Instead, a circular economy reduces material use, and redesigns materials, products, and services to be less resource-intensive. Sustainable practices help businesses wanting to participate in the circular economy recapture “waste” as a resource to manufacture new materials and provide more sustainable product options. According to a recent report: “every percentage point increase in the circular economy market – including renting, reselling, repairing, refurbishing – could save 13 million tons of CO2 equivalent.”⁵

Fuelling this shift for sustainable retailing is an emerging “deinfluencing” social media trend urging followers to stop impulse buys on Instagram, X (formerly Twitter), and TikTok that harm the environment. The deinfluencing tag has been viewed over 322 million times on TikTok alone!⁶ “Anti-haul” posts are also showing up as a backlash to bulk orders (also known as hauls) from fast fashion retailers such as Zara, Temu, H&M, and Shein, which are accused of contributing to the “one and done” mentality of wearing it once and disposing of the item. Statistics show that 57% of discarded apparel ends up in landfills.⁷

Sustainability Strategy Ideas

In 2026, retailers face unprecedented pressure to meet sustainability expectations — from consumers demanding greener solutions to evolving regulations and climate-related risks. McKinsey & Company’s State of Fashion 2026 highlights that sustainability, along with resilience to trade and supply-chain challenges, is now a top priority for brands — making strategies, like smart locker deployment for online order pickup and returns, more important than ever.⁸ Here are eight sustainability practices and sustainable retail design elements to explore for your retail business in 2026 and the years to come:

#1 Join an Open Locker Network
Becoming an open locker network host is a lower-risk, cost-effective way for a retailer to implement smart lockers for click-and-collect and retail returns – without each store having to pay for and install its own electronic locker configuration. Open locker networks are installed and maintained by a provider (such as Parcel Pending by Quadient) and are carrier and retailer-agnostic. This means any open retail locker network participants can leverage the self-service parcel locker solutions for secure, 24/7 order collections and returns. In short, an open locker network like Parcel Pending by Quadient’s offers brands a practical way to embrace sustainable retail practices: optimizing delivery and return process operations for a more sustainable product return process, reducing the number of delivery vehicles on the road and minimizing the associated carbon emissions created by your supply chain. These networks streamline delivery routes for retailers and carriers, making deliveries and returns more efficient and eco-friendly and helping meet government and company-set sustainability goals.

#2 Explore a Rental Model
Rentals also fill the demand for sustainable retailing, allowing one item to be used multiple times. IKEA, Home Depot, Lowe’s, and Rent the Runway allow one item to be used many times by consumers (e.g., tools, clothing, furniture). Learn more about how smart lockers can play a role in your sustainable development initiatives and support retail rental schemes here.

#3 Recycle Your Customers’ Used Goods
The resale market is exploding – whether it’s labelled re-commerce, second-hand, used, pre-owned, pre-loved, resale, vintage, or antique. The global second-hand apparel market is expected to reach $350 billion by 2027, according to resale site thredUP, up from $177 billion in 2022.⁹

Well-loved fashion brands are creating their own resale market under a variety of sub-brand labels, including Eileen Fisher (Renew), Lululemon (Like New), REI (ReSupply), North Face (Renewed Take Back), and John Fluevog (The Fluemarket). These exchanges allow the apparel brands to retain revenue that might otherwise go to other used marketplaces such as Poshmark, Depop, eBay, and Vestiaire Collective, while also helping the environment. This ingenious retail sustainability initiative also keeps shoppers loyal, as virtually all labels noted above only provide store or brand credit for future purchases, never a cash payment.

#4 Reduce Your Carbon Footprint
Shipping and logistics transportation accounts for 14% of global greenhouse emissions.¹⁰ Many 3PL (third-party logistics) providers can implement more sustainable options.

#5 Recycle and Upcycle Everything
Returns, unsold inventory, samples, and deadstock can easily find their way into valuable purposes. Besides donating to a worthy charity, look at upcycling items to make a new item. Patagonia, for example, goes beyond merely accepting worn garments through its Worn Wear program and repairs and repurposes objects, saving an estimated 120,000 items that might have ended up as waste.¹¹Urban Outfitters, too, has a sustainable development program that creates upcycled vintage items that are reimagined and redesigned.

#6 Eliminate Paper
The days of long CVS receipts should be over; it’s time to start delivering e-receipts to your customers as one of your sustainability goals. Digital receipts not only help your shoppers easily retrieve them for returns but also saves paper. And the best perk? Emailing receipts is the first step towards building a robust email marketing strategy.

#7 Leverage Technology
A number of leading retailers are using “try-on” technology to reduce returns and promote sustainability. For example, beauty brand Sephora is using augmented reality to allow customers to virtually try on makeup products, while Ray-Ban, Warby Parker, and other eyewear brands are using a virtual try-on feature for eyeglasses. The National Retail Federation estimates that US consumers will return nearly $850 billion worth of goods in 2025, representing a double hit to sustainability as returned items are often shipped using non-renewable energy and can end up in landfills.¹² Better educating shoppers, providing detailed product information, and using technological advancements can all contribute towards your company’s sustainability priorities as well as an eco-friendly approach to retailing in the US.

#8 Ship Goods Using Compostable and Recycled Materials
Each year, 420 million tons of paper and cardboard are produced.¹³ Source post-consumer paper for shipping and encourage recycling in marketing messages. Investigate compostable, recyclable, or reusable supplies. Small changes to your sustainable retail design like these can have a big (and positive!) environmental impact.

Building a Comprehensive Sustainability Framework with Smart Lockers

Whether you join an open locker network or develop your own private locker network for your customers exclusively, retail parcel locker solutions are one of the easiest ways to help you meet your sustainable retail goals. Here are just a few of the features that Parcel Pending smart parcel locker systems include to deliver a more sustainable solution to order pickups and returns for retail brands and businesses:

Greener Materials

Parcel Pending’s durable locker materials and construction help brands and retail operators reduce waste over the life of their locker systems. Locker components are modular and easy to repair, which supports sustainable building practices and lowers environmental impact over time.

Lower Energy + Smaller Carbon Footprint

By integrating energy-efficient design features, such as solar-powered electronics and touch-to-wake screens, smart lockers can reduce overall energy consumption. By consolidating deliveries, the lockers also help retail businesses cut carbon emissions and streamline services. Centralizing deliveries and returns to lockers at nearby retail locations supports sustainable development strategies that benefit both consumers and retail business operators.

Accepts Circular Economy Deliveries

Sustainable smart lockers support initiatives such as take-back products and re-commerce programs. This creates a more eco-friendly locker experience where customers can easily return items, and participate in low-impact alternatives to home delivery. Smart locker solutions allow retailers to provide long-term value while improving environmental performance and supporting community-based sustainability practices. 

Green Building Integration

Parcel Pending solutions work seamlessly within modern retail building environments, supporting green strategies like renewable layouts and adaptable space usage. Offering this type of environmental programming at their stores helps retailers show consumers (current and potential) that they have a culture built around sustainable retail practices. 

Sustainability is Now a Retail Requirement, Not a Trend

Retailers that prioritize circularity, sustainable design, low-carbon logistics, and eco-friendly customer experiences will win loyalty, reduce costs, and future-proof their business. Smart lockers are one of the simplest, highest-impact ways to make retail logistics more sustainable.

Ready to learn more about how smart lockers can make your retail operations more sustainable? Contact one of our parcel management experts today.

Sources:

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2. Sustainable Brands. SB Socio-Cultural Trends Research™. pages.sustainablebrands.com. October 7, 2023. https://pages.sustainablebrands.com/socio-cultural-research
3. Liu, Chuanlan, Jeremy M. Bernardoni, and Zhongjie Wang. 2023. “Examining Generation Z Consumer Online Fashion Resale Participation and Continuance Intention through the Lens of Consumer Perceived Value” Sustainability 15, no. 10: 8213. https://doi.org/10.3390/su15108213
4. Furman, Ali & Pedersen, Kelly. The Gen Z Paradox: Spending less, expecting more. www.pwc.com. October 6, 2025. https://www.pwc.com/us/en/industries/consumer-markets/library/gen-z-consumer-trends.html.
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7. Campbell, Charlie. The Race to Upcycle Africa’s Fast Fashion Dumping Ground. time.com. August 6, 2025. https://time.com/7307662/ghana-africa-fast-fashion-waste-pollution/
8. Balchandani, A., Starzynska, E., Barrelet, D., et al. The State of Fashion 2026: When the rules change. www.mckinsey.com. November 17, 2025. https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
9. ThredUP. 2023 Resale Market and Consumer Trend Report. www.thredup.com. April 5, 2023. https://www.thredup.com/resale
10. Damen, Alexis. Sustainable Retail: 15 Steps to Success with Examples. www.shopify.com. September 20, 2023. https://www.shopify.com/retail/sustainability-retail
11. Weavabel. 9 Brands That Are Embracing Fashion Upcycling. www.weavabel.com. January 3, 2022. https://www.weavabel.com/blog/brands-that-are-embracing-fashion-upcycling
12. National Retail Federation. Consumers Expected to Return Nearly $850 Billion in Merchandise in 2025. nrf.com. October 15, 2025. https://nrf.com/media-center/press-releases/consumers-expected-to-return-nearly-850-billion-in-merchandise-in-2025
13. The World Counts. Tons of paper produced in the world, this year. www.theworldcounts.com. n.d. https://www.theworldcounts.com/challenges/consumption/other-products/environmental-impact-of-paper