Innovation Future Prospects in Retail: A Sustainable Approach

In the retail sector where large-scale supply chains, resource-intensive operations, and consumer facing product systems intensify environmental and social pressures, innovation must evolve beyond traditional models to embed sustainability into everyday organisational practices. Despite the increasing focus on the topic of sustainability, there is still a critical need for deeper understanding on the development of a sustainable innovation environment in leading retail organisations. Accordingly, this paper investigates the following overarching question: how are sustainability initiatives distributed across the environmental, social/equity, and economic pillars, and how do sustainability-leading retailers differ in translating these priorities into organisational practices? Central to this approach is the cultivation of a culture of innovation that supports and sustains the establishment of sustainable innovation. To address this, the methodological approach chosen is a qualitative analysis based on a combination of a thematic analysis using NVivo software. Secondary data is targeted by analysing sources of annual reports and sustainability reports of two industry retail group leaders according to Dow Jones Sustainability Indices Europe in 2024 and Romania CST Index. Drawing on current trends, the paper outlines strategic pathways for stakeholders to align innovation practices, processes, systems, frameworks into the core of the organisations. By embracing a sustainable approach and nurturing an innovation-driven mindset, organisations can effectively position themselves as agents of meaningful and lasting change.