Two new studies this week shed light on resale and RFID in retail, respectively, as sustainability & technology continue to be among the hottest topics in the industry – aside, of course, from AI. In the first study, resale company Trove & impact intelligence platform Worldly took on the issue of how brands can utilize circular models as a way to help reduce their emissions, particularly when combined with upstream supply chain interventions. At a high level, Trove and Wordly’s study, “Where Are Circular Models Effective Sustainability Strategies for Fashion Brands?”, centers on three key insights …
(1) Resale is a meaningful decarbonization strategy for Premium Apparel and Outdoor Brands: “Resale can result in a 15-16% reduction in annual carbon emissions in 2040, particularly for premium apparel and outdoor brands,” per Trove and Wordly. “Companies in these segments can achieve annual revenue growth and simultaneously reduce the need for new production by 23-35% annually.”
As distinct from premium apparel & outdoor brands, fast fashion companies & others with lower price points, “have faced challenges in the resale space,” Trove and Wordly assert, noting that “modeling shows that low-priced products don’t maintain value in resale markets and replacing new production and revenue with lower carbon resale products is less achievable in this space.”
Not all is lost for fast fashion brands, however, as while “they may pursue resale strategies from a decarbonization perspective, their efforts are better spent on supply chain interventions & material innovation investments.”
For a deeper dive into the Circularity-Emissions Connection and the Rising RFID Market, you can find that right here.
The Shop Safe Act – which was first introduced in 2020 to “reduce the availability of harmful counterfeit products by incentivizing online platforms to adopt best practices that will prevent third-party sellers from listing counterfeit products for sale” – was reintroduced in the Senate this week.
Our running list of retail legislation is up to date and can be found here. For a one-pager on the bill, you can find that here.
Sycamore Partners will acquire Chico’s FAS in an all-cash deal, paying $938.1 million to take the NYSE-traded apparel company private. Under the terms of the agreement, Chico’s FAS shareholders will receive $7.60 per share in cash, with the per share purchase price represents a 65 percent premium to the Company’s closing stock price on September 27, 2023 (the last trading day prior to the announcement of the transaction), the parties said in a statement.