Trends affecting donated goods retail:What is going on out there?

Brent Babcock, VP Donated Goods RetailAnn Marie Courchene, Director, Sales

Chris Simon, Director, Donated Goods Logistics

05/01/2023

Table of Contents• Salvage Recycling Trends• Donation Trends• Market Trends• Retail Trends• Retail Update• E-Commerce

05/01/2023

Salvage and Recycling Trends - Textiles

Q1 Actual $ per pound .072 vs Budget.135 Trend $ per pound .071

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Textile Spot pricing 1 year trend

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Salvage and Recycling Trends - Metal

Q1 Actual $ per pound .32 vs Budget .65Trend $ per pound .37

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Salvage and Recycling Trends - Cardboard

Q1 Actual $ per pound .39 vs. Budget .33Trend $ per pound .38 $

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Credential Sales• Each person throws out about 70 pounds

of clothing and other textiles annually, according to the Environmental Protection Agency.

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Credential Sales• Dec $144,167• Q2 $1,095,882• .18 $ per pound vs Textile.072 $ per pound • Staffing for second shift• Increase sales and reduce storage costs

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Item Donation Market Share• The largest percentage of donated clothing and household items over the last two years has been given to Goodwill (48% in both

the main sample and Maple Grove). • Maple Grove respondents are significantly more likely to donate to Disabled American Vets

2015 Main Sample (n=366)

2015 Maple Grove (n=340)

2014 Total (n=407)

48%

48%

45%

10%

5%

5%

8%

5%

7%

10%

6%

12%

24%

41%

32%

Percentage of Physical Donations Given to Each OrganizationGoodwill ARC Savers Salvation Army Other

Other orgs include

DAV (37%) and

Church (4%).

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Current Donation Trends

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb2014 2015 2016

-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

Inbound vs Outbound Trends

SoftHardTotal

Gayl

ords

Shi

pped

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Market Trends• US dollar strong• China economy• China shipping new raw materials cheaper then

used• Large players holding material for prices to rise• US Election instability

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Retail Trends – store closings• Kohl’s closing 18 stores• Macy’s closing 35-40 stores• BestBuy closed 30 stores looking at 100 leases in 2016• Sports Authority filed for bankruptcy to close or sell 140 stores• Walmart closing 260 Stores• Barnes and Noble closing 223 stores• Walgreens closing 200 stores• Children’s Place closing 200 stores• Finish line closing 150 stores• American Eagle closing 150 stores• PierOne closing 100 stores

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Retail Trends

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Retail TrendsHow Retail and Ecommerce Influence Each Other• Convenience – is there free shipping online? Is the store far away from their house?• Urgency – do they need the item right away?• Price – can they save a little bit by buying online with a coupon code, or bundling

with another order containing additional items?• Availability – does the retail store actually have the item in stock?• Condition – is the item in the store newer, fresher, or in better condition than what

is available online? Would an online purchase potentially degrade the item’s condition?

• Experience – can the item be fully experienced, tested, tried on, or visualized online?

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Retail TrendsMobile coupon for President’s Day• Mobile marketing exceeded

all expectations• Recording some of the

highest engagement rates our agency has ever seen.

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Retail Trends – Future Opportunities• Mobile Apps• 1 click purchase

from Gina +Will and Second Debut

• ShopGoodwill Mobile

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Retail Trends – Future Opportunities• By 2020 all store

sales will be influenced by digital

• Buy Button on Pinterest

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Retail Re-Alignment• Created a new alignment for the retail division that drives efficiencies and a

narrowed focus on performance.• Evaluated the need for In-home pick up with our current donation trend in

stores and inventory levels.• Merged roles to create Director of Donated Goods Logistics position to oversee:

– Transportation– Donated Goods Acquisition– Store Production Strategy– Salvage & Recycling– Outlets & Auctions

• District realignment from 5 to 4

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Retail Performance• Balanced Scorecard metrics• Incentive Plan to align with Scorecard• Store Business review to support reinforcement of

balanced scorecard• Performance Management Training / ”Gapology” Gap

Management Model• DM/DOS gap store visits with specific actions plans to

impact performance

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12 month Growth Slide

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E-Commerce

Fairvi

ew 2014

Brookly

n Park (B

PC) 2015

BPC Expan

sion 2016

0

5000

10000

15000

20000

25000

30000

Sq FT

Sq FT

Fairvi

ew 2014

Brookly

n Park (B

PC) 2015

BPC Expan

sion 2016

0

2

4

6

8

10

12

14

Posting Stations

Posting Stations

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E-Commerce• 2013 - Started budgeting to

Stores• 2014 - Added pre-scan to

increase sales, went away from silent auction

• 2016 - First full year of giving credit to the stores WITH an expectation of 4.5% of all sales made through E-Comm)2012 2013 2014 2015 2016

Trend

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

E-Comm Sales

Actual 2016 Budget

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E-CommerceOther efforts to increase revenue through e-Commerce• External Partner Possibilities

– Investigating what other GW’s are doing (already done)– Have someone from the top 2 GW’s travel to MPLS to provide insights (opportunity)– Monthly sharing with other GW’s (opportunity)– Online and Ebay entrepreneurial – Meetings with other online sellers (opportunity)

• Marketing – Currently we are orienting efforts to increase our visuals to the millennial market. Web front changes, insertion into search engines.

• Store Team “buy-in” – We are changing the experiences of our GM’s by making more money to their contribution to the mission…this will take time