Polarn O. Pyret, or PO.P as it is affectionately known, has been Sweden’s leading children's wear brand since 1976. Sustainability is baked into the PO.P DNA, pioneering sustainable production and the use of organic cotton as early as the mid-70s.
The brand's mission that every garment lasts at least three children is exemplified by a design ethos that includes unisex ‘evergreen’ designs, room-to-grow functionality, durable abrasion-resistant fabrics, and free repairs for outerwear.
They have intentionally fostered a culture of handing down through siblings, cousins and even generations. PO.P customers are loyal because the clothes LAST and the total cost of ownership for families represents exceptional value.
Despite being leaders in sustainable childrenswear, they've had to confront an uncomfortable truth. Up to 90% of emissions in the fashion industry come from the production and transportation of new clothes. As a retailer, their aim was to grow UK market share, yet every new sale they made, effectively made them less sustainable.
With an ambition for growth (but not at any cost), the leadership team at PO.P recognised that sustainable growth could only be achieved by selling proportionally less new, scaling second-hand, and making the business commercially dependent on resale.
For a brand built on longevity, circularity was the obvious next step.
So in late 2021, PO.P set their sights on trialling second-hand, beginning with manual
trade-in for outerwear only, before progressing to thermals in March 2022. The response to their first resale collection was staggering: 95% of garments sold out within five days.
It became very clear, very quickly, that there was greater demand for PO.P Second Hand and a clear need for a scaled service to meet that demand.
PO.P chose Tern, experts in Circular Retail, to help them figure out how.
The first step was to build the business case; mapping out the service requirements and defining what a profitable P&L would look like. Tern then worked with PO.P to find the right refurbishment and resale fulfilment partner; ultimately appointing GXO (who notably already ran PO.P’s ecommerce fulfilment and repairs service).
Working closely together, – PO.P, Tern and GXO set out to deliver an industry leading ‘in-house’ takeback and resale proposition. One that would directly address customer demand for quality second hand products and their reservations about buying and selling in the peer-to-peer market.
Unique in the market, customers of the PO.P Second Hand service can shop pre-owned alongside new. They can also use their trade-in credit on second-hand purchases, which is key to reducing overproduction and the waste that comes with it.
Here’s how it works:
The integrated in-house resale offer, automated through Tern's trade-in software with fulfilment by GXO, led to a 30x growth in units sold of PO.P Second Hand.
The stats don’t stop there.
With Tern’s innovative software and support, Polarn O. Pyret UK has created a profitable new revenue stream that builds brand loyalty.
“It’s what customers want, and we’re changing our business model to deliver against existing behaviours. A really attractive, easy-access, frictionless trade-in programme is essential for this. POP Second Hand is the ultimate proof point for our vision of PO.P clothes being owned by at least three children. We want PO.P to be a go-to destination for ALL parents who want access to affordable, quality-assured pre-loved PO.P” – Mats Nilsson, Managing Director, PO.P UK
With our trade-in platform and ongoing support, PO.P won two awards in 2023, the 'Best Circularity Initiative' in the Drapers Sustainable Fashion Awards and the RTIH ‘Most Innovative Retail’ Award.
Additionally, the proportion of PO.P Second Hand sales vs new continues to grow each month and the returns rate for PO.P Second Hand is less than half that for new clothing. These figures emphasise the quality of PO.P Second Hand and the experience of buying brand-certified pre-loved.
Tern is extremely proud to support Polarn O. Pyret, Sweden’s greenest retailer, in creating a profitable and sustainable circular retail model that customers adore. If you’re looking to build a successful circular business model and grow your brand, get in touch to find out how Tern can help.
