How retailers can lean into the circular economy and boost sustainability efforts
How retailers can lean into the circular economy and boost sustainability efforts EMARKETER
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Why resale makes sense:
Although consumers want to shop sustainably, many aren’t willing to buy a product they deem lower quality, especially if it costs more. Buying resale means they don’t have to compromise on their preferred brands or prices.
Brands such as Lululemon, REI, and IKEA operate their own resale programs, trading used products for store credit or coupons. “It offers better control over the brand experience,” Davidkhanian said. But managing one-off products, in a single colorway and size, is hard to do, she said.
We expect US resale volume to reach $108.64 billion in 2024, and continue to grow over 3.3% every year through the end of our forecast period in 2027.
What else can retailers do to be greener?
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Explore partnerships:
“There are lots of different tech companies that help with the movement of goods to make resale profitable,” Davidkhanian said. Soles4souls, for example, is a nonprofit that partners with retailers to receive, refurbish, and redistribute used shoes to people in need.
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Use more than buzzwords:
Support your eco-claims with facts and figures. “Data is vital to proving that you are acting in the best interest of the climate and of people,” our analyst Sara Lebow said.
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Look at the big picture:
Not all environmental initiatives have to be at the consumer level. Identify ways to boost sustainability at every stage, from manufacturing to shipping.
Terms to know:
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Sustainability
is the catch-all term for business practices that do not hurt the environment.
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The circular economy
refers to systems that extend the product life cycle by reusing, recycling, repurposing, or reselling it.
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Resale
is the process of selling pre-owned products, including both physical sales at consignment or thrift stores and ecommerce sales on marketplaces such as Depop or Poshmark.
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 12: Responsible Consumption and Production | Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse | – Resale programs implemented by brands like Lululemon, REI, and IKEA that trade used products for store credit or coupons – US resale volume reaching $108.64 billion in 2024 and continuing to grow over 3.3% every year |
| SDG 17: Partnerships for the Goals | Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources | – Partnerships with tech companies like Soles4souls to facilitate the movement of goods for profitable resale |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 12: Responsible Consumption and Production
The article discusses the concept of resale as a sustainable alternative to buying new products. This aligns with SDG 12, which aims to promote responsible consumption and production.
SDG 17: Partnerships for the Goals
The article mentions partnerships between retailers and organizations like Soles4souls to facilitate the movement of goods for resale. This aligns with SDG 17, which emphasizes the importance of partnerships for achieving sustainable development goals.
2. What specific targets under those SDGs can be identified based on the article’s content?
Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse
The article highlights the implementation of resale programs by brands like Lululemon, REI, and IKEA, where used products are traded for store credit or coupons. This promotes the reuse of products and contributes to waste reduction.
Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources
The article mentions partnerships between retailers and organizations like Soles4souls, which collaborate to receive, refurbish, and redistribute used shoes to people in need. This exemplifies the importance of multi-stakeholder partnerships in achieving sustainable development goals.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article provides indicators that can be used to measure progress towards the identified targets:
- Resale programs implemented by brands like Lululemon, REI, and IKEA that trade used products for store credit or coupons indicate progress towards Target 12.5.
- The projected US resale volume reaching $108.64 billion in 2024 and continuing to grow over 3.3% every year indicates progress towards Target 12.5.
- Partnerships with tech companies like Soles4souls to facilitate the movement of goods for profitable resale indicate progress towards Target 17.16.
4. SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 12: Responsible Consumption and Production | Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse | – Resale programs implemented by brands like Lululemon, REI, and IKEA that trade used products for store credit or coupons – US resale volume reaching $108.64 billion in 2024 and continuing to grow over 3.3% every year |
| SDG 17: Partnerships for the Goals | Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources | – Partnerships with tech companies like Soles4souls to facilitate the movement of goods for profitable resale |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: insiderintelligence.com
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