Sustainable Supply Chains in Fashion: How Apparel Retailers Are Leading the Way

Sustainability has become a defining expectation in the fashion and apparel industry. As consumers grow more conscious of their environmental impact, they are demanding greater transparency, ethical practices, and tangible action from the brands they support. Apparel retailers are responding—often outpacing other sectors—by embedding sustainability across their supply chains, from sourcing and production to last-mile delivery and returns. This transformation is not only meeting consumer expectations but also driving operational efficiency, cost savings, and brand loyalty.

Why Sustainability Matters in Fashion Supply Chains

Recent consumer research reveals a clear shift: 71% of shoppers avoid retailers they perceive as having a negative environmental impact, and 79% are more likely to buy from brands that source products from suppliers with a lower carbon footprint. Transparency is paramount—over half of consumers say they are more likely to buy from retailers who are open about the environmental impact of their supply chains and products. While 60% are willing to pay more for sustainable products, most will only pay up to 10% extra, underscoring the need for brands to deliver sustainability without compromising value.

Apparel Retailers: Pioneers in Sustainable Returns and Circularity

Apparel retailers are leading the way in sustainable returns, with 70% offering eco-friendly options such as in-store drop-off or consolidated returns—well ahead of grocers (60%) and B2B retailers (55%). This leadership extends beyond returns to encompass the entire value chain:

Real-World Innovations: From Electric Vehicles to Warehouse Automation

Leading apparel retailers are deploying innovative technologies and strategies to embed sustainability at every stage:

Electric Vehicles in Last-Mile Delivery

ASOS, a prominent online fashion retailer, has piloted electric vehicle (EV) delivery services in Berlin. By integrating EVs into its last-mile fleet, ASOS is reducing carbon emissions and offering customers a more sustainable shopping experience—a key differentiator in today’s market.

Warehouse Automation for Efficiency and Sustainability

The Calzedonia Group’s Tezenis brand has implemented advanced pouch technology in its warehouses, enabling high-capacity, efficient fulfillment and returns handling without expanding its physical footprint. This automation supports seamless omnichannel operations, minimizes energy use, and reduces waste, all while meeting growing ecommerce demand.

Circular Economy and Customer Engagement

Brands like H&M are embedding circularity into their business models. H&M’s two-tier digital membership program rewards customers for eco-friendly purchases and behaviors, such as recycling clothing or choosing sustainable products. This not only drives repeat purchases but also deepens engagement with environmentally conscious shoppers.

The Business Value of Sustainable Supply Chains

Sustainability is not just a compliance exercise—it is a driver of growth, loyalty, and operational efficiency. Apparel retailers that lead on sustainability enjoy:

Actionable Strategies for Fashion Retailers

To accelerate their sustainability journey, apparel brands should consider the following strategies:

  1. Adopt Data-Driven Demand Planning: Use AI and advanced analytics to forecast demand, optimize inventory, and reduce overstock and markdowns.
  2. Invest in Warehouse Automation: Implement robotics and automated picking/packing solutions to increase efficiency and support scalable omnichannel fulfillment.
  3. Transition to Electric and Low-Emission Delivery: Pilot electric vehicles or partner with logistics providers offering green delivery options, and communicate these efforts to customers.
  4. Embrace Circular Economy Models: Facilitate product take-back, resale, and recycling programs, and design products and packaging for reuse and recyclability.
  5. Implement Eco-Friendly Packaging: Shift to recyclable, compostable, or reusable materials, and minimize packaging size and weight to reduce shipping emissions.
  6. Reward Sustainable Choices: Integrate sustainability into loyalty programs, offering incentives for eco-friendly purchases and behaviors.
  7. Collaborate Across the Ecosystem: Partner with technology providers, logistics partners, and other brands to share best practices and resources for greater impact.

Looking Ahead: The Future of Sustainable Fashion Supply Chains

Sustainability is now a core driver of innovation and competitiveness in fashion retail. Brands that lead on eco-friendly supply chain practices will not only meet regulatory requirements and consumer expectations but also unlock new efficiencies, reduce costs, and build lasting loyalty. By embedding sustainability into every aspect of the value chain—from sourcing and production to last-mile delivery and returns—fashion retailers can future-proof their operations and thrive in a rapidly evolving market.

Publicis Sapient partners with leading fashion and apparel brands to deliver digital business transformation that drives growth, loyalty, and sustainability. Ready to accelerate your sustainability journey? Connect with our experts to explore how digital innovation can transform your supply chain and last-mile operations for a greener, more profitable future.