Rothy’s is circling...

After committing earlier this year to fully circular production by 2023, the shoe brand is taking another step toward that goal: From today through October 24, Rothy’s will pilot its first-ever customer takeback program.

• Customers can return their old shoes at six Rothy’s stores in exchange for a $20 same-day discount on a purchase.
• The company wants to upcycle 20,000 pairs of shoes by year’s end.

The goal is to determine end-of-life use cases for Rothy’s shoes, explained Saskia van Gendt, the company’s head of sustainability. (In preparation, Rothy’s experimented with 1,000 pairs of shoes in existing inventory— like damaged returns—to understand the pain points of footwear disassembly, while preserving the recovered materials.)

Here’s a snapshot of Retail Brew’s convo with van Gendt around sustainability and Rothy’s pilot:

What’s the main business proposition of achieving circularity and using recycled materials?

We believe that sustainability is the foundation for a resilient business, and circularity is just the same. By breaking down old products and using twice-recycled materials in new inventory, you can cut costs associated with purchasing raw materials and decrease your reliance on outside suppliers, creating a more compact and nimble supply chain.

We’ve already seen the benefits from our tight knit supply chain and our wholly-owned factory, which enable us to produce for demand and avoid the excess waste typical of our industry.

What was the biggest challenge in getting the pilot off the ground?

Designing a process that’s accessible for customers and manageable for our retail team members across our seven stores. To create a pilot shoe takeback program required engineering a new infrastructure for Rothy’s: Collecting shoes at the stores, sorting and storing them, and then establishing a method for shipping them back to our recycling partner’s facility. All of this, of course, while managing business as usual.

This pilot will test that infrastructure, and will hopefully identify areas of improvement and opportunities for growth. The other big challenge is the unknown. We have no idea how popular (or unpopular) this will be, and so we’re planning for the possibility of thousands of shoes, or no shoes at all.

Click here to read more of our interview with van Gendt about the thinking behind Rothy’s first-ever takeback program.—KM

It’s nearing the end of October, and the holidays are practically here. Last Thursday, we rang in the season with a conversation about e-comm trends.

For this very special Checkout event, our very own Glenda Toma chatted with Rina Hurst, Shipt’s chief business officer, and Courtney Carlson, Walmart’s SVP of category marketing.

What we know: It’s going to be a big year for holiday shopping. Deloitte projects that sales will total up to $1.3 trillion from November to January. And all those gifts necessitate lean omnichannel strategies, from e-comm and online fulfillment to physical stores.

Watch the full convo here, and keep scrolling for some key takeaways.

Speed and supply

Shipt, which supports over 130 retailers, is introducing new shipping speeds this season to meet demand from its partners during the supply-chain crunch and shift to e-commerce. “Same-day delivery is such an important part of the e-commerce fabric of today,” Hurst said. But it’s not “one size fits all.”

Sometimes consumers want to go in and pick up goods for themselves. Other times “they want to click a button and have it shipped,” Hurst told us. “We’re looking at what same day, next hour, and next day can look like.”

It started with groceries, Hurst explained, but “that ring of what consumers are expecting and want to have in next-day or same-day delivery is really growing…It went from a luxury, to a convenience, to a must-have.”

Carlson said the pandemic made consumers more “comfortable buying gifts over e-commerce,” and the rush of online orders calls for robust supply chain solutions. Walmart has been sourcing holiday merchandise from suppliers earlier than previous years, chartering ships and diverted shipments through less congested ports, and closely managing inventory levels.

• The company is also experimenting with drone delivery and last-mile solutions like self-driving electric cars to keep up the pace.

In person = important: Walmart’s 4,700 stores play a huge role in the company’s fulfillment operations, providing the flexibility to offer same-day, or even same-hour delivery.

And while the shift to e-comm is strong, Walmart is seeing interest in brick and mortar, as well. “Customers are feeling like the stakes are higher this year,” she said. “Pandemic trends pushed customers to e-comm spending, but we are seeing customers want to return to physical shopping.”

• Black Friday, for example, can be thought of as a “social occasion,” where customers value “that ability to go in and physically touch and feel” products.

“We know, in talking to our retail partners, those consumers that shop across all channels are the most valuable,” Hurst added.

Click here to read how Walmart and Shipt are looking at hiring this holiday season—and beyond.—JG

India’s luxury market is piping hot—it’s expected to total $200+ billion by 2030, per McKinsey—and retail conglomerates such as Reliance Brands Limited are taking note. Last week, the company announced a 40% stake in Indian designer label Manish Malhotra, the Business of Fashion reported.

• The partnership is meant to elevate the luxury brand and foster its international growth. (Terms were not disclosed.)

Key quote: “A question I am often asked is: Why isn’t there a true luxury brand out of India?” Darshan Mehta, RBL’s managing director and chief executive, told the pub. “In three years time, I would expect people to say, ‘Well, there’s Manish Malhotra, that’s a global luxury brand that comes out of India.’ That’s the mission we are driving towards.”

• This isn’t Reliance’s first investment in a luxury Indian brand. In 2018, it bought a 12.5% stake in another local designer label, Raghavendra Rathore.

Zoom out: India is one of the only major economies projected to have double-digit growth in 2021, and its luxury market is currently one of the fastest growing. Sectors beyond the country’s $50 billion wedding market have started to pick up, thanks to a burgeoning younger demographic (millennials and Gen Z make up a chunk of spending) with higher disposable incomes.—JS

Today’s top retail reads.

Slam dunk: What every brand needs to know about the third-party cookie (and its phase-out): “At the end of the day, people are still going to be selling stuff. And they’re going to figure out how to do it in a way that’s more respectful to consumers than the way they used to do it.” (Marketing Brew)

Swiped out: Some retailers are hoping gift cards can save their holiday seasons. (Modern Retail)

Meeting of the minds: Jenna Lyons. Ron Johnson. Rachel Shechtman. These familiar names were supposed to be retail’s next big things. What happened? (Retail Dive)

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

Best Buy diving into the deep end when it comes to healthcare. The electronics retailer agreed to acquire UK-based tech company Current Health, which offers services like telehealth and remote patient monitoring.

That will make it the third healthcare company Best Buy owns. Meanwhile, Dollar General earlier this year hired a chief medical officer, a move demonstrating the chain’s commitment to the healthcare space. CEO Todd Vasos said 65% of Dollar General’s stores are located in “health deserts,” making healthcare a strong business opportunity.

• Companies like Amazon and Walmart are also eyeing healthcare as the next great business opportunity, as the pandemic popularized offerings like telemedicine.

Our question: Is healthcare a viable business opportunity for traditional retailers? Cast your vote here.

Checking in: Last time, we asked if restaurants should be permitted to permanently keep pandemic-era offerings like street dining and to-go cocktails. The consensus was overwhelming: 96.3% said of course, while only 3.7% didn’t think so.

We’re fully in the holiday spirit (yes, we *did* stock up on wrapping paper this weekend)—and so are retailers. From preparing for Black Friday to dealing with trucker shortages, Retail Brew is digging into how companies strategize for the season.

Oh, and not to mention the takeaways above from our convo on all things e-comm.

Check out the insights and stories so far here.

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• Etsy sellers look to get in on the ‘Squid Game’ craze
• Higher prices, fewer drivers: Food banks exacerbated by the supply-chain crisis