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Allbirds is creating a program to help its shoes land in a new nest.
Aiming to double the lifetime of its products, the sustainability-minded shoe brand launched a resale program. This will allow consumers to trade in gently used shoes, which will then be resold on the platform.
“By launching our trade-in program, ReRun, we will enable our customers to play an integral role in extending the life of our shoes,” said Hana Kajimura, Head of Sustainability at Allbirds, in a statement.
To start, the company will allow consumers at stores in Los Angeles, Chicago and New York City to trade in gently used shoes for $20 in store credit. In turn, it will sell the imperfect and gently used shoes starting at $59.
It’s an example of recommerce, which describes a practice in which companies aim to champion reuse of goods. Even as the explosion of online retail has created more convenience and options for consumers while providing a platform for a new generation of creative brands, the waste generated by the fashion industry in particular, and ecommerce as a whole, remains a looming challenge.
Yet there is a movement afoot to use the tools that empower online commerce to address this issue. It has led to what Business of Business spotlighted as a new generation of companies seeking to power a circular economy, in which processes are put in place to reduce waste and generate reuse. There are signs that consumers are willing to use what companies roll out, as well. In a recent study by IBM cited by Business of Business, 62% of the 19,000 respondents said they are willing to change their purchasing habits to reduce environmental impact.
It’s creating a market that is booming in its own right. A 2021 forecast by online thrift store ThredUp projects that the resale market is expected to grow at 11 times the rate of the broader retail clothing industry by 2025, and is on a course to reach a valuation of $77 billion by that time.
To create ReRun, AllBirds partnered with Trove, a technology company that powers resale marketplaces that also works with lululemon, Patagonia, REI, Nordstrom, Levi’s.
With its program, AllBirds said it is extending a focus on the environment. It’s one of a number of initiatives focused in this area, including making its shoes from sustainable materials. AllBirds also aims to cut the carbon footprint of its products to near zero by 2030, and says it is a 100% carbon-neutral business.
The resale program demonstrates how it can create a new business initiative and prioritize the environment at the same time.
Trending in Operations
On the Move has leadership and promotion news from Pacsun, Calvin Klein and CVS Health.
This week, one of the world’s largest consumer goods companies hires a new CEO, while a luxury ecommerce platform taps a successor to its founder. Plus, we’ve got news on top leadership hires and promotions at Pacsun, West Elm and Calvin Klein Americas.
Unilever appoints CEO
Hein Schumacher. (Courtesy photo)
Hein Schumacher will be the next CEO of Unilever, effective July 1. Schumacher comes to the maker of Dove, Hellmann’s and Ben & Jerry’s from Royal FrieslandCampina, where he is credited with leading turnaround efforts at the $11 billion business.
Succeeding the retiring Alan Jope, Schumacher will assume the top job at Unilever as it appears to be on the precipice of change following the appointment of activist investor Nelson Peltz to the board in May.
“The Board looks forward to Hein realising the full potential of Unilever as a winning business which delivers long-term growth and value for all its stakeholders,” said Unilever Chairman Nils Andersen, in a statement.
Brie Olson named co-CEO in Pacsun shakeup
Brie Olson. (Courtesy photo)
Brie Olson was promoted to co-CEO of Pacsun from the role of president. Olson will serve alongside co-CEO Mike Relich. With the move, Alfred Chang will transition to the CEO role at clothing brand Fear of God, which is a Pacsun brand partner. As president, Olson oversaw Pacsun’s AI and metaverse initiative, led a variety of brand partnerships and introduced a gender neutral collection.
The RealReal hires Wainwright's successor
John E. Koryl is joining The RealReal as CEO. Koryl is stepping in to lead the luxury ecommerce platform after founder Julie Wainwright stepped down in June. He comes to the company from the digital arm of Canadian Tire Corporation, and also previously played a key digital transformation leadership role while serving as president of stores and online Neiman Marcus.
West Elm taps Ralph Lauren Home lead as president
Day Korbluth. (Courtesy photo)
Day Kornbluth was named president of West Elm. Kornbluth comes to the Williams Sonoma-owned sustainable home retailer from Ralph Lauren Home, where she served as president. The company credited her track record of growing home furnishing brands with a focus on product and digital innovation. The move follows former West Elm president Alex Bellos' appointment as CEO at Food52 earlier this year.
Vera Bradley shakes up leadership
The travel and accessories retailer Vera Bradley announced a leadership shakeup that resulted in the following:
President Daren Hull, Chief Creative Officer Beatrice Mac Cabe and Chief Revenue Officer Mary Beth Trypus all saw their roles eliminated, and will be leaving the company.
The company will also add the position of SVP of merchandising and design, and is actively conducting a search.
Alison Hiatt joined Vera Bradley as chief marketing officer to oversee digital marketing, customer data and ecommerce. Hiatt brings experience from the food company Salt and Straw.
Pura Vida, which is owned by Vera Bradley, will see co-presidents Griffin Thall and Paul Goodman leave the company. With this, Vera Bradley will acquire a 25% interest in Pura Vida from Thall and Goodman for $10 million, effective January 30.
Vera Bradley said it is making these changes to "drive cost savings, add more focus on marketing and merchandising, and position the Company to deliver steady top- and bottom-line growth."
Master P named chairman of Launch Cart
Percy "Master P" Miller. (Courtesy photo)
Percy “Master P” Miller was appointed chairman of the board at Launch Cart, an ecommerce platform that bills itself as an alternative to Shopify. Alongside a rap career that yielded 90s hits with his label No Limit Records, Miller brings a track record as an entrepreneur in food and entertainment. “With his entrepreneurial spirit and deep understanding of the power of business, our partnership will make it easier for aspiring entrepreneurs to realize their dreams of starting an online business, building a brand, and generating income,” said cofounder Bernt Ullmann.
Kohler to lead Calvin Klein Americas
Donald Kohler. (Courtesy photo)
Donald Kohler was named president of Calvin Klein Americas by parent company PVH Corp. Kohler brings experience from a 15-year career in retail from Burberry, Salvatore Ferragamo and Diesel. The company said his expertise includes direct-to-consumer, third-party driven business models and ecommerce. The new comes on the heels of the appointment of Inditex executive Eva Serrano as global brand president at Calvin Klein.
Skims appoints chief commercial officer
Robert Norton is joining Skims as chief commercial officer, and will lead international expansion. Norton joins the Kim Kardashian-founded shapewear brand from Moncler, where he served as president of the Americas. Over a two-decade career, he also previously served as CEO of the Americas for Roberto Cavalli and was an executive at Ralph Lauren.
“I have been a fan of Robert’s for several years and believe him to be a rare, creatively minded executive who knows how to build both a brand and a business,” said Jens Grede, cofounder and CEO of Skims, in a statement. “We are excited to have Robert on the team as we continue the evolution of SKIMS into a global retail brand.”
CVS Health creates chief product officer role
CVS Health announced a pair of appointments:
- David Joyner will join the company as EVP and president of pharmacy services, which serves employers, health plans and government. Joyner previously worked with CVS Health, and has 34 years of experience.
- Amy Bricker was named EVP and chief product officer for the consumer. She assumes the newly-created role to head consumer products and innovation after serving as president of Express Scripts.