Sustainability has become a significant part of Nike’s (NKE) business model through its Move-to-Zero initiative. In 2021, the push continues with the brand’s first "circular supply chain" business model called Nike Refurbished. The sportswear giant also announced plans to partner with rideshare company Lyft (LYFT) on a new eco-friendly bike share station.
Nike Refurbished is a four-step process. First, customers return their gently worn sneakers to Nike via their nearest Nike store or through the return form located on the orders page on the company’s website. Then Nike experts inspect and grade the incoming footwear. Once a pair passes expectation, they are then cleaned and sanitized. Finally, the refurbished shoes are sent to stores to be sold at a reduced price.
Nike Refurbished will not only include footwear that customers have returned, but also shoes produced by Nike found to have minor cosmetic defects, which will also be sold at a discounted price.
“Nike Refurbished is the latest in our offerings that reveal how Nike is truly thinking of the entire journey when it comes to extending the life of a product while also continuing to eliminate waste from the shopping experience, said Heidi O’Neill, president of consumer and marketplace at Nike.
“Whether eliminating single-use plastic bags in our stores globally, removing excess packaging materials from digital orders or launching innovative new offerings like Nike Refurbished – as part of our Move to Zero journey we’re making bold investments to reduce waste across our retail ecosystem and offer new opportunities for consumers to shop more sustainably with Nike,” said O'Neill.
By the end of April 2021, up to 15 Nike retail locations within the U.S. will carry Nike Refurbished products. Nike says that its customers can expect a variety of men’s and women’s footwear models such as the Vapormax, Air Max, and React will be included in the new program.
Another part of Nike’s Move to Zero is a partnership with Lyft on e-bike and scooter docking e-stations in Portland, Oregon. The scooters will feature Nike Grind material which consists of scrap, unused manufacturing materials including rubber, foam, fiber, leather, and textiles that are processed into new materials. Nike and Lyft plan to expand the program in the second half of 2021 in Denver and Chicago.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.