New Balance shoe
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February 5, 2024

Is New Balance’s Used Shoes Program a Step in the Right Direction?

New Balance, a sports footwear and apparel manufacturer, is taking a step forward with sustainability by introducing its new resale program, dubbed “Reconsidered.” This unique platform gives used shoes a second life, aligning with the brand’s ambition to prolong the lifespan of its products.

The process is straightforward. Customers can go to the New Balance website and find pre-owned shoes for sale. These shoes aren’t just old pairs lying around, though. They include customer returns and shoes with minor cosmetic imperfections that aren’t up to the brand’s standards for selling as brand new. Before they’re listed, the shoes are cleaned and made ready for their new owners. This is a move that can help mitigate the negative cost associations with consumer retail returns.

To promote this initiative, New Balance is offering a trade-in program. Customers can send their gently worn New Balance shoes via mail or drop them off at a store. In return for accepted shoes, they get a voucher that they can use on the New Balance website for their next purchase. The value of the voucher depends on the condition of the traded-in shoes and the time of year, but the trade-in page explains that “the amount could be up to 25% of the original MSRP.”

The launch of Reconsidered also aims to tackle the environmental impact of the footwear industry, such as the problem of too many shoes ending up in landfills. By extending the product life of its footwear, the company hopes to minimize waste and get the most out of the resources already consumed during manufacturing.

Unfortunately, this program seems somewhat limited by some of the exceptions to what the brand will accept, including “sneakers with heavy creasing, excessive scuffing, heavy tread wear, [notable] insole wear, significant staining, shoes with rips, tears, or holes, and damaged labels.” For any shoes New Balance doesn’t accept, even though customers won’t get a voucher, the company will donate the shoes to the local nonprofit organization Soles4Souls, so they will still find a new home.

On the broader sustainability front, New Balance has ambitious goals. The brand aims to achieve approved 1.5°C-aligned emissions reduction goals, source 100% renewable electricity for owned operations by 2025, and commit to using lower-impact materials. Other aspirations include transitioning to low-carbon transportation and advocating for stronger climate policies.

The technological aspect of the Reconsidered platform is powered by Archive, a specialist in branded resale. Meanwhile, the cleaning, fulfillment, and warehousing of these products are handled by Tersus Solutions, employing innovative waterless cleaning techniques and a range of textile recycling solutions.

A pilot of the in-store trade-in program is scheduled to take place at eight retail locations in the U.S., with plans to expand into more stores later in the year.

The Greener Crocs Program

New Balance isn’t the first footwear company to offer a way to recycle used shoes. Crocs launched an innovative shoe recycling program in October. The mission is simple — give used shoes a second life, mitigate wasteful practices, and contribute toward a sustainable future.

Last year, Crocs outlined its sustainability goals, planning to achieve net zero emissions by 2040. This was a postponement over the initial decade-long plan due to a spike in emissions between 2021 and 2022. Deanna Bratter, vice president and global head of sustainability for Crocs, highlighted the importance of circular design and production plans in achieving this feat.

“When you think about the circular economy, sometimes people just think about waste and doing something with waste,” Bratter stated. “But when we think about the concept of creating a circular economy, it requires a variety of solutions, a lot of creativity.” According to Bratter, Crocs aims to transform its production process by extending the lifespan of products, pondering over future recyclability, and seeking renewable inputs.

Crocs’ novel collection program, launched in 10 U.S. states, will collect data to understand the complexities of implementing this initiative. These states were specifically chosen due to their diverse climate change attitudes. Around 50 Crocs retail stores will house collection bins for easy drop-offs by consumers.

Crocs will accept worn shoes of any condition. Shoes with minimal wear will also be handed to Soles4Souls, supporting entrepreneurs in the secondhand apparel industry. Shoes beyond usability will be repurposed by Crocs’ product designers.

Simultaneously, Crocs intends to answer crucial questions like the most common type of shoes returned, their age, and the predominant motivation behind consumers participating in this initiative. This program is currently limited to the U.S., due to easier transport to processing locations, but the aim is to eventually expand nationwide. In an effort to reduce waste, Crocs also makes use of manufacturing scraps in some shoes. The company is exploring the possibility of recycling unusable collected shoes into future products.

A striking majority (over 81%) of Crocs’ shoes are made from Croslite, a durable resin derived mainly from fossil fuels. The company plans to source 50% of its Croslite from bio-based alternatives by 2030. Current alternatives include tall oil from paper mills and used cooking oil. In 2022, only 2.2% of Croslite originated from non-fossil sources, but as of last November, they were on track to reach 20% by the end of 2023.

With mounting pressure on the footwear industry to reduce waste and emissions, Crocs’ strategy is being seen as a gradual, rather than a giant, stride toward sustainability. Despite the challenges, the unique composition of Croslite could be an advantage in the company’s recycling efforts.

In the realm of environmental impact, the footwear industry trails behind textiles. Every year, about 22 billion pairs of shoes end up in landfills, while a similar number are manufactured. And the public is taking notice. In a strange scenario last year, a social media post exposed how one Vans store dumped out excess shoe inventory and then slashed the shoes so that they could not be worn. With the fashion and apparel industry responsible for roughly 8% of annual greenhouse gas emissions, it’s high time to rethink and reshape the situation.

Discussion Questions

How can the concept of a circular economy be further harnessed in the fashion and footwear industries to not just minimize waste but also ensure the optimal use of resources already expended in manufacturing?

With New Balance and Crocs setting an example of extending the life of their products and considering future recyclability, are there unique challenges to certain types of merchandise, and if so, how can these be innovatively tackled?

Despite the notable sustainability goals set by these companies, are they adequate in the face of the escalating environmental crises? Can more aggressive timelines be pursued realistically without sacrificing profitability?

Poll

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Neil Saunders
Neil Saunders

New Balance is just the latest mainstream retail entrant to the booming resale market. The secondhand sneaker market is particularly strong and New Balance is savvy to try and capture a slice of it rather than leave the market to the likes of StockX and others. New Balance will accrue three advantages from resale. First, it can generate a new stream of revenue that, while small in the overall scheme of the business, will be helpful. Second, it can burnish its sustainability credentials. Third, by giving vouchers to those trading in old sneakers, it can help drive custom and loyalty in the first-hand part of its business. All in all, this is a good move and it will be interest to see how New Balance scales it over time.

Mark Ryski

I applaud both Crocs and New Balance for these initiatives. Every company needs to play it’s part in reducing their environmental impact, and these initiatives will help. However, I do see a number of unique challenges with how shoes work in the circular economy. First, for many people, shoes are a personal product. Foot odor and general use can cause shoes to take the form of the prior owner. This would impact fit and definitely be a turn-off for many shoe buyers. So unlike expensive hang bags or even outerwear, shoes have a hygiene factor that may stunt acceptance. Offering to recycle shoes for customers who bring them back to the store is helpful, and while it may not generate much in used shoe sales, it will help keep more unwanted shoes from ending up in a landfill. 

Craig Sundstrom
Craig Sundstrom

I think the wrong question is being asked here: it should be “will a company ever do anything (truly meaningful) that will reduce its own sales?” And the answer is no. The thorough out there will realize I should have said “profits” , and to the extent that someone can come up with a worakable – aka simple – model to fit sustainability into pricing AND enforce the same upon competitors, that may turn out to be a meaningful difference. Until then, fingers should remain crossed. OTOH, hope being among those rare things that must be preserved, I’ll offer up this sop: there’s nothing to prevent companies from economizing in using other producers outputs …so expect to see a continued empahasis on manufacturing and packaging efficiency.

Gene Detroyer
Famed Member

Craig, your cynicism is well-embraced and spot-on.

Bob Amster

This is part profit-making and part good PR. You can’t completely applaud or snicker. Either way, it’s a can’t lose situation.

Anil Patel
Anil Patel

In my view, the fashion and footwear industries can do more to embrace the idea of a circular economy, like what New Balance and Crocs are doing. This means not just reducing waste but also making the best use of the resources already used in making products. Some products, like those with complicated materials, might pose unique challenges but can be tackled with new ideas, better recycling methods, and working together as an industry. While it’s good that companies are setting goals for sustainability, the environmental problems we’re facing are getting worse, so, it might be necessary for companies to set more ambitious goals, while remaining profitable.

Mark Self
Mark Self

This makes for great marketing slogans. To be supremely effective, price needs to be maintained or, dare I write it, lowered. Exhibit B (I used Exhibit A in a previous post 🙂 ) is organic food…I challenge anyone to tell me they can taste the difference between a can of organic garbanzo beans and regular garbanzo beans. Assuming the answer is “I can not” , now you have to cost justify the approximate 15% premium. This is great for people who can afford it.
In the New Balance case, take out price and these efforts just become consumer virtue signaling.

David Weinand
Active Member
Reply to  Mark Self

@mark – agree – on things like canned goods – taste isn’t likely much different. However, the reason for the premium is more about avoiding pesticides and preservatives vs. taste.

Gene Detroyer

SHOCKING! “Every year, about 22 billion pairs of shoes end up in landfills.” (Who is counting?) That’s almost three pair for everyman, woman and child in the world. I am quite sure whoever is responsible could find feet for them.
MORE SHOCKING! One Vans store dumped out excess shoe inventory and then slashed the shoes so that they could not be worn. I suspect if one store was caught, more than one is doing it.
As for New Balance. It seems like all PR to me. Returns and imperfect products have been resold at a discount for decades. That is how outlets started. The NB rules are almost silly. “Unfortunately, this program seems somewhat limited by some of the exceptions to what the brand will accept, including “sneakers with heavy creasing, excessive scuffing, heavy tread wear, [notable] insole wear, significant staining, shoes with rips, tears, or holes, and damaged labels.” Maybe they should say “unworn.” There is no way any of my used sneakers would qualify for a NB discount. Maybe it works for kids’ and teens’ shoes which are outgrown before they wear out?

David Weinand

Having an opportunity to submit shoes that don’t qualify for re-sale but could be donated to a worthy cause, is a good PR move. For those that are environmentally inclined, it could add to loyalty and custom opportunities.

Georganne Bender
Georganne Bender

I like the name Reconsidered and I love this idea. I also understand completely why shoes showing certain wear are not accepted. Consignment and some thrift stores do not accept goods that are unsalable either.

Crocs is also doing good things towards sustainability. I may have to buy a pair. Who’s with me?

Patricia Vekich Waldron

I’m surprised that New Balance hasn’t done this earlier, given it reflects and supports the brand value prop while giving customers options and opportunities.

Crocs is another story given the raw materials their product is made of …. I did think the ever deteriorate.

Brad Halverson
Brad Halverson

There are others doing similar programs to recycle or reuse some of the materials, including Adidas.
If the customer base is interested in these programs, and willing to be part of what makes circular retailing work profitably, then we have a bright future ahead for more companies to jump in the action.
I do wonder what percentage of customers want to participate in an effort like this. And at what point does it impact a shoe company’s profitability.

Rachelle King
Rachelle King

This is a step in the right direction for both New Balance and Crocs. However, they both also seem a step behind industry peers on sustainable efforts overall. Still, a small step is better than no step at all.

Nicola Kinsella
Nicola Kinsella

Pre-loved jackets? Sure. Shoes? That have a fabric and/or foam component? I’m not a fan. Sneakers mold to your foot over time. You can’t ‘undo’ that. And they’re something people actively sweat in. Crocs are fully washable and don’t deform the same way a pair of sneakers does. I’m all for offering the shoes with slight imperfections or self wear at a reduced price, but am not sure about the ‘used sneaker’ concept. Would love to see more focus on the recyclability, or replacement components (like innersoles, soles etc.) to increase longevity and to support a ‘refurbished’ option.

BrainTrust

"This is part profit-making and part good PR. You can’t completely applaud or snicker. Either way, it’s a can’t-lose situation."
Avatar of Bob Amster

Bob Amster

Principal, Retail Technology Group


"I’m surprised that New Balance hasn’t done this earlier, given it reflects and supports the brand value prop while giving customers options and opportunities."
Avatar of Patricia Vekich Waldron

Patricia Vekich Waldron

Contributing Editor, RetailWire; Founder and CEO, Vision First


"Having an opportunity to submit shoes that don’t qualify for re-sale but could be donated to a worthy cause is a good PR move."
Avatar of David Weinand

David Weinand

Chief Customer Officer, Incisiv


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