Exploring the Alignment Between Consumer Expectations and Retailer Strategies for Sustainable Practices in Indian Supermarkets

Sustainability has gradually become vital in the present retail food processing industry strategy, particularly within food distribution systems. Although sustainability in retail has received considerable research attention, existing research largely focuses on metropolitan markets. Whereas Tier-3 cities, despite contributing a significant share of emerging market retail growth, remain comparatively low in the research section. The research contributes empirical evidence from a Tier-3 Indian retail context, addressing geographical bias in sustainability literature. This study investigates sustainability practices implemented in supermarkets operating in the tier-3 cities of the Rayalaseema region, A.P., in India, from dual perspectives of owners/managers and consumers. By addressing the geographical imbalance in sustainability research, the findings provide insights relevant to practical policy for advancing sustainable retail ecosystems in emerging markets. A survey was conducted among a sample of 270 customers and 112 supermarket managers using a well-structured questionnaire. The results of the study indicate that consumers hold a favourable perception of ethical product availability and pricing fairness, moderate eco-initiatives. From the managerial perspective, plastic reduction policies and eco-friendly packaging are widely implemented, whereas renewable energy adoption and structured local sourcing remain limited. The outcome of the Inferential statistical analysis reveals a significant positive association between sustainability practices and ethical perception. However, the chi-square test revealed no significant relationship between stated motivation for reusable bag use and actual usage frequency, nor between plastic policy strength and adoption challenges stemming from many awareness gaps. The investigation suggests resolving an attitude–behaviour gap and raising awareness of the availability of sustainable products and practices. Policy and managerial implications highlight the need for AI-driven waste forecasting, solar energy subsidies, enhanced eco-labelling, and strengthened local supply networks.