The British retail landscape is increasingly driving towards a more sustainable future. But what are the realities behind sourcing practices and sustainability, and how can the industry drive positive change forward in 2025?
Source, the renowned sourcing show for fashion, home and more, has teamed up with Insider Trends, the retail trend consultancy, to create a report that highlights significant advancements in global sourcing while revealing the industry’s downfalls.
‘The State of Sourcing Report – Sourcing and Sustainability in 2025’, underscores the complexity of sourcing decisions. While some retailers embrace global markets, others remain rooted in their local regions due to cost, capacity or strategic priorities.
“Sustainability has become a vague term, and consulting companies have turned it into a business. Real change requires entrepreneurial belief without killing the business you’re in”, noted Source.
It divulges where products are sourced, why these regions are chosen and how sustainability goals are shaping business decisions in the next 12-18 months. For example, the survey revealed that 84% of businesses with over 50 employees and 71% of smaller businesses source internationally. 48.8% source in China to keep costs down.
It also highlights the lack of a unified approach to sustainability within businesses, which is hampering progress. With many businesses developing separate solutions, the sector struggles to scale innovations such as sustainable materials.
Suzanne Ellingham, Sourcing Director at Source, said: “As the retail industry heads into 2025, collaboration, transparency, and innovation will be essential for achieving meaningful sustainability progress. By pooling resources and sharing strategies, businesses can move beyond individual efforts to create systemic change.
“Brands and retailers must also embrace partnerships with government and regulators to develop practical, scalable solutions that balance environmental goals with business realities. With the right guidance and collaboration, 2025 could mark the turning point for sustainability in the retail industry.”
As we move into 2025, retailers are calling for practical, industry-wide solutions, including financial incentives to offset the costs of adopting sustainable practices and consistent regulations to support compliance and transparency.
Register to receive the State of Sourcing Report here.
