H & J Smith is a department store chain trading in fashion clothing and home goods. The business comprises five stores spread throughout the Southland region and has been operating for 110 years. There are currently over 200 staff employed, making H & J Smith a significant part of the regional economy. The business’ sustainability journey began with a couple of employees who were passionate about the environment. Seven years later H & J Smith Buyer, Vicky Henry believes the biggest success is that sustainability is now an everyday word within the business. “So when we say we need to be more sustainable, people don’t look at us funny, they understand it and they get on with it,” she says.

There is an environmental policy in place that provides the framework for implementing sustainable business practices. These initiatives are driven by a Green Team within the business. The Green Team’s success lies in the fact that its members are drawn from all areas of the business; cleaning, maintenance, sales, buyers and office staff. In 2004, a task force went through the business to identify where energy efficiency gains could be made. This led to actions such as lagging of hot water pipes, upgrading insulation and fixing leaking taps. Timers were installed to control the use of lighting and hot water cylinders. 

Waste minimisation is a point of focus at H & J Smith with efforts made to reduce packaging waste in partnership with suppliers. Consideration is also given to waste reduction at point of sale; the business has invested in EPI bags which biodegrade to their component parts within eight years without the application of sunlight. There is also a policy that emphasises combined trips for business travel, as well as having multiple people in cars where possible. Such sustainable fleet management strategies have led to the business reducing its fleet by three cars over the past 12 months, and will likely yield significant cost savings in the short to medium-term. 

Vicky believes the biggest challenge associated with implementing sustainable business practices was actually making the decision to do it. As she testifies, “it’s not hard once you’re doing it, but you only realise that once you’ve put your foot along the path.”

H & J Smith is a chain of department stores predominantly trading in fashion clothing, as well as home goods. The business comprises five stores in the Southland region; Te Anau, Balclutha, Gore, Queenstown and Invercargill. There is also an off-site distribution site within Invercargill. This case study has a focus upon sustainability initiatives implemented within the Invercargill store.

The H & J Smith chain has been operating in the region for 110 years and Buyer Vicky Henry says they are proud of the fact they are Southland owned and operated. H & J Smith currently employs just over 200 staff, making the business a significant part of the regional economy.  Vicky explains that the business is “very much entrenched in the community who support us so we try and support them.”

Indeed, looking after people is very much part of giving action to the concept of sustainability at H & J Smith. Another main benefit of sustainable business practices is economic efficiency. Vicky reports that the business has realised the financial savings associated with sustainability by controlling expenses; leading to a significant positive effect on the company’s bottom line.

What sustainability means at H & J Smith

The sustainability journey at H & J Smith started with a couple of employees who were passionate about the environment. According to Vicky, this passion has now spread throughout the business and is encapsulated in the meaning of sustainability at H & J Smith; “the ability to continue trading in the community for another 110 years and adding value to it at the same time.” 

Sustainability performance started making real progress in 2003, when Vicky worked with the Board of Directors to write an environmental policy for H & J Smith. The core aim within the policy is to reduce the business’ environmental impact as much as possible, while maintaining customer satisfaction levels. 

Seven years later, Vicky believes the biggest success is that sustainability is now an everyday word within the business. “So when we say we need to be more sustainable, people don’t look at us funny, they understand it and they get on with it,” Vicky says. 

Sustainability in action

By having an environmental policy, the framework for implementing sustainable business practices is readily available for staff. Initiatives are generally driven by a Green Team within the business. The secret to the Green Team’s success lies in the fact that its members are drawn from all areas of the business; cleaning, maintenance, sales, buyers and office staff. They meet every three months to identify areas to focus on, what’s working well, what could be improved and practical strategies for making this happen.

Energy is one area of focus for H & J Smith. This began in earnest in 2004 when significant energy price hikes galvanised the business into action on energy efficiency. A task force went through the business to identify where energy efficiency gains could be made. This led to actions such as lagging of hot water pipes, upgrading insulation and fixing leaking taps. Timers were installed to control the use of lighting and hot water cylinders. A ‘switch it off’ campaign was also introduced to remind staff about turning off lights and computers, which is still in place today. 

An example of effective energy reduction relates to one of the main entrance ways into the Invercargill store. The previous doors would tend to blow open in the wind and stay open, meaning that in-store heating was lost outside. Now the entrance area has been upgraded, with airlock doors installed that substantially reduce heat loss to the outside.

This example relates to the H & J Smith’s policy of upgrading equipment. When an electronic item needs to be replaced, it is upgraded to an energy efficient model. For example, dishwashers, hot water cylinders and pumps in the kitchens. Vicky reports that as the costs of electricity and water have increased, the business has maintained its level of spending by purchasing and working smarter.

In terms of waste minimisation, H & J Smith tries to reduce as much waste as they can, and what is disposed of is done so responsibly. Part of this involves communicating with suppliers to reduce packaging waste, as well as considering ways to reduce waste such as bags associated with the point of sale. The business has invested in EPI bags for customer purchases. EPI bags biodegrade to their component parts within 8 years without the application of sunlight. While these bags cost more than standard plastic ones, Vicky believes the environmental benefits and the awareness raised among customers as a positive trade-off. 

A recycling ethos runs through H & J Smith. Anything that can be recycled is recycled, whether it be at point of sale, in the inwards goods area or the dispatch areas. This includes items such as paper, plastic and cans, but also polystyrene – a significant component of packaging – which can now be processed locally by Southland disABILITY Enterprises (see http://www.sei.co.nz/ for further information).    Paper is re-used wherever possible, both within the store and in the offices. Staff produce their own memo cubes out of used paper, printers are set to double-side and old tickets are re-used. As Vicky explains, “it just is part of our culture not to send things to the tip if we can avoid it.”

A further area of sustainability that H & J Smith is dedicated to, and of which Vicky is personally very proud, is community involvement. The business is affiliated with the Invercargill community hospice, the annual relay for life event and budgeted donations are made to raffle prizes. A Christmas gift tree is also located in-store where customers can leave gifts for needy children; these gifts are then distributed by H & J Smith staff. 

Staff members are encouraged to participate in community-related initiatives and regularly promote specific causes such as wearing a red top to support The Heart Foundation. The company also consider the wellbeing of staff by promoting various ‘in-house’ programmes. For example, cycle to work initiatives, ‘bring packed lunch’ days and the implementation of a Mole Map programme for staff after some incidences of melanoma within the H & J Smith team.

Transport is another aspect of the business that has seen recent improvements. Due to their location at the bottom of the South Island, Vicky and the team need to think smart about staff travel and freight. There is now a policy that emphasises combined trips for business travel, as well as having multiple people in cars where possible. A booking board is used to communicate where staff need to go and when; “it’s a really simple idea but it’s worked amazingly well,” Vicky says.

These sustainable fleet management strategies have led to the business reducing its fleet by three cars over the past 12 months. This will likely yield significant cost savings in the short to medium-term. In association with this, all vehicles are regularly maintained and vehicles are replaced with newer, more fuel efficient models as and when required.

Challenges involved in seeking sustainability

Vicky believes the biggest challenge associated with improving sustainability performance at H & J Smith was actually making the decision to do it. As she testifies, “it’s not hard once you’re doing it, but you only realise that once you’ve put your foot along the path.”

In order to start along the sustainability path H & J Smith worked through the First Steps programme, which Vicky feels was time and effort well spent. This programme is delivered through Environment Southland. The business also consulted a waste minimisation officer at Invercargill City Council in order to gather as much information as possible. This enabled them to see what others had done, thereby learning from previous mistakes. 

Advice for other businesses

Vicky believes that many similar businesses are concerned about their environmental impact and are keen to make changes, but may be unsure where to start or what to do. She recommends that instead of focussing too much on the big picture, to “do it a bite at a time” as even the smallest thing can make a significant difference. 

At H & J Smith, a big part of their approach to sustainability revolves around monitoring. For example, the on-site maintenance team follow a regular schedule of looking for things that can improve the business’ sustainability performance. The establishment of simple, regular routines such as this can make the process of improving much more effective. As Vicky says, “it’s not as hard as you think to do it!”