Shopper Experience
14 March 2023
REI is blazing the trail in brand resale, study finds
Trove's Brand Resale Index identifies best practices for brands that own their recommerce programs.
(Photo courtesy of Trove)
Trove's Brand Resale Index identifies best practices for brands that own their recommerce programs.
(Photo courtesy of Trove)
In the current era of commerce, brands are exercising more control over how their products are sold, and delivered.
As they run their own stores both online and offline, brands have ownership of the relationship with the customer, the shopping experience they provide and the process that delivers goods to their doors.
Increasingly, this ownership is also extending to resale.
While secondhand sales were long the province of marketplaces and consignment stores, brands are increasingly choosing to bring resale under their own roof. With infrastructure provided by software platforms, more brands are setting up their own recommerce programs that offer trade-ins, and selling pre-loved items through a channel that operates alongside ecommerce and brick-and-mortar.
Trove CEO Andy Ruben saw an opportunity to grow this area of resale after running sustainability, private label and ecommerce at Walmart.
The question he sought to bring from the whiteboard to the real-world was: “How would a different model work where brands could continue to grow, but their growth would not directly connect to new production?”
“So brands like Patagonia would make money the first time they made a Nano Puff, but then make money the second and third time they would sell that same jacket. And over time, more and more of the growth would come from the secondary sale as they have more products in the world,” Ruben said.
This resale model arrives as a generation of brands – Think: Patagonia, On, REI, Lululemon – are building strong affinity among customers, and creating highly sought-after products that make consumers want to seek them out. This increases the value of resale, as consumers can still participate in the experience with a brand and own an item, while doing so at a lower cost barrier to entry than buying new.
As this fast-growing segment of the $100 billion resale market continues to see more brands join in, Trove sees a set of best practices for brand resale emerging. Working with OSF Digital, the recommerce software company is codifying these and highlighting leaders in the space in a new report out on Tuesday.
The Brand Resale Index, which evaluated 40 brands across four verticals and was agnostic of tech platform, identified four key areas where brands can stand out:
To make resale sustainable for brands, growth and profitability will be necessary. Ruben said software is a key tool to undergird all of these elements.
“If you don't have that technology backbone, it's going to be very hard as a brand to make money and scale this program,” Ruben said.

When it comes to the leaders in resale, the report broke down top performers by category:
The leaders tend to stand out by tying each best practice listed above together. For instance, REI makes resale part of its membership program, so there is an inherent connection between the experience of buying a resale item and the experience of participating in the brand’s community.
“Brands have the ability to offer you things that no one else can,” Ruben said. “By trading items in, they can give you exclusivity and access to the core of the brand in a way that a third party marketplace or an Amazon never could.”
Looking ahead, the Index identified a key opportunity for luxury brands to expand their own recommerce channel. The category has a long history in resale, but the leading brands do not for the most part own their resale experiences. Rather, it is consignment shops and second hand boutiques that make up most of the upscale secondhand market.
“Luxury has all of the elements that make that category a winner in this space,” Ruben said. That includes items that are coveted by consumers, a deep narrative and heritage around those items, as well as a pricepoint where products hold their value.
Here are a few more key findings from the report:
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.