Retail insurance holders can help their customers by not boosting their profits on ethical products, an expert has suggested.
Tom MacMillan, executive director at the Food Ethics Council, said that retail insurance customers can expect shoppers to still be interested in items such as organic produce despite the economic downturn.
However, he noted that the tightening financial conditions are making life more difficult for some customers, which could lead them to feel tempted to compromise on their principles.
"But they shouldn’t need to choose. Retailers can throw customers a line by easing the exaggerated margins they slap on many ethical products," Mr MacMillan explained.
Earlier this year, the Soil Association claimed that overall UK sales of organic products rose by 1.7 per cent in 2008 to exceed £2.1 billion, although this must be viewed in terms of increasing prices rather than sales volumes.
Recent research from Consumer Focus found that two-thirds of customers are unsure if products which retail insurance holders claim are environmentally friendly are actually green.
