(BRK.A), (BRK.B)
Brooks Running, a subsidiary of Berkshire Hathaway, has unveiled a new initiative known as ReStart, a recommerce program aimed at reviving and reselling gently used Brooks footwear in the United States. This strategic move not only keeps functional gear in circulation but also allows the brand to tap into the burgeoning recommerce market.
With sustainability at the core of its ethos, Brooks has been steadfast in its commitment to safeguarding the environment upon which we run. The introduction of ReStart represents a significant stride towards achieving these goals by prolonging the lifespan of gently used Brooks gear and generating revenue to fund future sustainability endeavors.
Dave Kemp, Director of Corporate Responsibility at Brooks, emphasized the importance of recommerce, stating, “Recommerce allows us to keep gear on the run while supporting our aim to take responsibility for the impact of our business. The launch of ReStart is an important step in the brand’s long-term, science-backed approach to sustainability.”
The global resale industry currently stands at a staggering $100 billion, growing at a rate five times faster than traditional retail. Experts project that by 2030, recommerce will account for a remarkable 23% of all retail transactions. In line with this market trend, the ReStart program will offer three different condition categories: Like New, Great, and Good. These categories will cover a wide range of Brooks footwear styles, including beloved favorites like the Ghost and Glycerin, as well as speed-oriented products like the Hyperion franchise. Prices for these refurbished items start at an enticing 35% off the manufacturer’s suggested retail price (MSRP).
To power the ReStart program and ensure a seamless shopping experience for consumers, Brooks has teamed up with Trove, a trailblazer in the field of branded resale for over a decade. Trove serves as the recommerce partner for leading brands worldwide, enabling them to reach new customers while also fostering accessibility and choice within their existing communities. By leveraging its proprietary Recommerce Operating System, Trove is spearheading the transition toward more lucrative and sustainable business models. Through their partnership, Trove processes over one million items annually for brand partners, prolonging the life of countless products and preventing greenhouse gas emissions. In fact, between 2016 and 2022, Trove-powered resale and trade-in programs helped avoid a
staggering three million kilograms of greenhouse gas emissions.
Brooks Running’s entry into the recommerce market with the launch of ReStart highlights their dedication to sustainability. By embracing the recommerce model, the company not only ensures that high-quality gear remains in circulation but also solidifies its position as a leading force in the pursuit of environmentally responsible business practices.
As a company, Brooks has shown strong momentum in 2023 in the U.S. specialty run channel, with a year-over-year revenue increase of 42% in the first quarter. The direct e-commerce sales for Brooks grew by an impressive 33% year over year in Q1.
© 2023 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.