Dive Brief:

• In pursuit of a holistic sustainability strategy, DTC brand Allbirds on Thursday launched a resale platform called Allbirds ReRun that allows customers to trade in their Allbirds shoes for $20 of store credit. Allbirds wool runners currently sell for $98.
• The recommerce program will be available in three stores initially, in Los Angeles, Chicago and New York City, with plans to expand it to more locations in the future. The company will sell imperfect and gently used shoes on its site at reduced prices, starting at $59, according to a company press release.
• Allbirds' site currently has shoes listed for resale for as much as $89, down from an original sale price of $125. The company said it will also accept shoes in worse condition and recycle them or donate them, but they will not qualify for the $20 credit.

Dive Insight:

Allbirds has joined the long list of retailers rolling out recommerce programs to keep items in circulation longer and add a revenue stream from used products.

As the used apparel market surges, companies across the industry have launched resale, refurbishment and other take-back programs to capitalize on consumer interest. In 2021 alone, Fabletics, Urban Outfitters, Timberland and Nike joined the fray, though environmental outdoor retailers have been at it for years.

Allbirds ReRun is part of the brand's broader sustainability strategy, which includes commitments to reducing Allbirds' per-product carbon footprint by half by the end of 2025 and minimizing it to "near zero" by 2030. The company is already carbon neutral and certified with Climate Neutral. And just this December, the brand put out a low-carbon running shoe in partnership with Adidas, reaching a personal best carbon footprint for a product.

Allbirds has been in major expansion mode over the past couple of years, launching into performance footwear in April 2020, expanding into apparel in October of that year and adding activewear to its assortment in August 2021. The brand has also grown its store fleet, and, perhaps the biggest news, filed for an IPO last year.

Like many of its competitors, the filing revealed a string of losses, including $14.5 million in 2019, $25.9 million in 2020 and $21 million for the first six months of 2021. In the company's first earnings report as a public company in December, Allbirds grew its losses further. Operating loss surged 64% to $11.9 million, while net loss nearly doubled to $13.8 million.