2015 community impact report - savers...2015 community impact report 2 3 introduction & core...

Our family of thrift stores

ImprovIng lIves through the power of reuse

2015 community Impact Report

32

Introduction & Core Values 3

A message from our president & Ceo 4

our 2015 impact at-a-glance 6

our story 8

our core values 15

the value village Cycle 17

Creating Meaningful Impact 23

social impact 24

environmental impact 27

economic impact 29

Community-Driven Good 33

nonprofit partner relationships 34

reuse customers 44

our business 46

our shoppers 50

Potential Realized 51

IntroductIon & Core VAlues

Table of conTenTs

4

IntroduCtIon & Core vAlues

5

a Message froM our PresidenT & ceo Improving lives through the power of reuse

reuse is in Value Village’s dnA — it’s who we are and how

we operate as a purpose-driven retailer. We purchase used

clothing, household goods and textiles from nonprofit

organizations to extend the life of used goods and reduce

what ends up in a landfill.

But even as we grow as a business, we see a tremendous opportunity for more

people to embrace the power of reuse. every year, north Americans throw away

more than 26 billion pounds of clothing, 95 percent of which could have been

reused or recycled.1 we aim to help people understand the steps they can take

to reduce their environmental footprint and to know they have a partner in

value village. As our impact has grown over the past 61 years, our purpose has

become clear — to improve lives through the power of reuse.

over the past year, we’ve furthered our ability to harness the power of reuse to

support nonprofit organizations, create jobs, reduce waste and provide quality

goods to value-minded shoppers. In 2015, we added 12 new stores and more than

1,000 team members. we were also fortunate enough to experience the strongest

growth in sales in recent memory.

But it’s not just about more stores or increased revenue. As important as these

measures of our performance are, they are the result of our success, not the

cause. our business growth is tied directly to our ability to create positive impact.

we tell our story and demonstrate our impact in three distinct ways:

Empowering Nonprofits — since 1954, we’ve been unwavering in our commitment

to our nonprofit partners. we provide them with a consistent revenue source as

they supply our stores with pre-owned clothing and household goods. In 2015,

we paid our nonprofit partners more than $140 million. our payments aren’t

restricted to any one area of need, and as a result, our more than 120 community-

based nonprofit partners direct funds where they are needed most to advance

their missions and causes.

Providing Great Value — In 2015,

the value village family of thrift stores

employed nearly 22,000 people,

operated nearly 330 stores and was an

important part of the tax base that funds

schools, roads, fire departments and

other essential public services across

the united states, Canada and Australia.

we also provided value through the

products we sell to our customers

and are committed to making quality

goods available at an affordable price.

nearly 96 percent of the retail items

sold in our stores are under $10, and our

average item sells for under $4.50.

we also sell items to small businesses

around the world which helps support

the economies of many communities.

Protecting the Planet — whether a product we buy is sold at one of our retail

locations or resold by one of our reuse customers, our operations help give

tens of millions of textiles, accessories, toys, furniture, books and electronics

an extended life outside of a landfill. together with our nonprofit partners,

our stores diverted more than 650 million pounds of reusable goods from

entering the waste stream in 2015.

the following 2015 report provides further data and examples that demonstrate

our contributions to the community and tells the value village story. I invite

you to read on and share your feedback as we continually seek to improve lives

through the power of reuse.

while 2015 was a great year, we are constantly looking for ways to do more.

together with our nonprofit partners, we look forward to making an even bigger

impact in 2016.

sincerely,

1U.S. EPA, Advancing Sustainable Materials Management 2013 Fact Sheet; Council for Textile Recycling

introduction & core values

76

$140 Million

$4.50

96%

nearly 22,000 jobs

15 years

$200 Million Tax revenue

paid to our nonprofit partners

more than

average price of items

sold in our stores

of items sold

were under $10

held by savers & value village

team members across the united states,

Canada and Australia

average nonprofit partner

relationship

more than

generated

introduced into each store’s

inventory every day

65o Million Pounds of reusabale goods

kept from the waste stream

uP To 10,000 new iTeMs


7

NeEVER DOUBT THAT A SMALL GROUP OF THOUGHTFUL

COMMITTED CITIZENSCAN CHANGE THE WORLD:

IT’S THE ONLY THING THAT EVER HAS.

“

“

- Margaret Mead

OUR 2015 IMPACT AT-A-GLANCE


9

located in the mission district of san francisco, Bill’s store operated in

partnership with the woodrow wilson Chapter #15 of the military order of the

purple heart. Bill managed a small but dedicated team of eight people, and he

employed a tremendous work ethic and entrepreneurial grit to build a successful

marketplace. After all, he wasn’t just working for himself. If successful, Bill knew

his business would create meaningful benefits for local veterans served by

the military order of the purple heart.

that was in 1954, and many things have changed since then. our relationships

with our nonprofit partners have grown and evolved, and our business has

expanded from a string of regional stores to a global organization that operates

in multiple countries.

embedded within the story of that very first location are the principles and

beliefs that continue to shape who we are today. we were founded on an

enduring belief that we thrive by creating opportunities for reuse and giving back

to the communities we serve. our success relies on dedication to our partners

and a business model built on providing support for community-based nonprofit

organizations. Community support is essential to how we operate.

8

Our Story

a company built on doing good

We’re proud that our community impact story dates back to

our company’s earliest operations. When our founder Bill Ellison

opened his first thrift store more than 60 years ago, social

responsibility and shared value were central to our business.

bill ellison


1110

the value village workforce is truly one of a kind, with almost 4,000 team

members who have been with the company for more than five years, over 1,500

team members have been with us for more than 10 years, and another 670 have

reached the 15-year milestone.

What matters most to our company

People From the communities we serve to the nearly 22,000 team members we employ, people are at the center of what we do.

Behind each nonprofit partner are those they help — hundreds, often thousands,

of people who live and work in the neighborhoods surrounding our stores.

we make it a point to get to know our partners, to learn about how we can

support them and to help address the challenges they face along the way. In fact,

our average nonprofit partner relationship spans nearly 15 years, with some

relationships lasting over 40 years. these nonprofits and the communities they

serve are more than just valued business partners — they are our neighbors.

As for our team members, they are the lifeblood of our organization and the

reason for our success. without their passion and dedication to our work,

value village wouldn’t be able to continue to grow and serve our local

communities. that’s why we strive to treat each team member with dignity and

respect. we value them by recognizing and cultivating their talents and interests

through a commitment to their well-being, growth and long-term success.

the majority of our store managers are hired from within the ranks of our

team members, and nearly all of our district managers are internal promotions.

12

Reuse We’re proud to be one of the largest textile recyclers in the world.

value village firmly believes in creating

a better world through reuse. Just like

our shoppers and our nonprofit partners’

donors, we see the potential in every item.

A tremendous amount of inventory comes

through our doors every day: clothing,

accessories, books, electronics, furniture

and more. we are an industry leader in

textile reuse and recycling, with over

90 percent of all clothing items purchased

diverted from disposal annually.

whether we sell goods to shoppers on our

sales floors or to wholesale recyclers and resellers, each transaction drives our

business while diverting reusable items from the waste stream. we have built this

business on the conviction that through the power of reuse, we extend the life

and value of the goods we purchase.


13

18 MILLION COATS

216 MILLION TOPS

7 MILLION PIECES OF jEWELRY

19 MILLION DRESSES

18 MILLION PURSES, BAGS & WALLETS

73 MILLION PAIRS OF PANTS

8 MILLION SCARVES

29 MILLION PAIRS OF SHOES

Last year, our stores repurposed hundreds of millions of items, including:

WE RECOGNIZE EVERY ITEM’S POTENTIAL


1514

Ingenuity We’re always finding ways to create the best experience possible for our customers and partners.

value village has always been at the forefront of new ideas and new approaches

in our industry. we’ve pioneered a retail store experience that defies typical

expectations for secondhand shopping. And we’ve reimagined how we can work

with our nonprofit partners to support their donation collection, making it easier

than ever for the community to donate to them. we’ve also continued to search

out new marketplaces for unsold products. In 2015, we sold aluminum to local

recyclers and hard plastics were kept out of the waste stream through third-party

buyers who grind and reuse the plastic for new products.

Enterprise We believe in the power of business to create meaningful benefits for society.

As we continue to grow, so does our ability to positively impact our communities.

each store opening means a partnership with a community-based nonprofit.

last year we opened 12 new stores, and with these partnerships comes financial

support for their missions. that’s not to mention the nearly 50 jobs we create

with each new store opening and the affordable marketplace we provide for

shoppers. we also buy items that have the potential for a useful life outside

the four walls of our store. true to our enterprising spirit, we look for resale

opportunities with wholesale customers and small business partners.

acT wiTh eThics& inTegriTy we always strive to do the right thing.

ethics and integrity consistently guide

our actions and decisions.

1

PuT donors & cusToMers firsTwe strive to exceed expectations

and offer exceptional service, value

and selection in a fun, easy-to-shop

thrift environment.

invesT in TeaM MeMbers

,’ success

we recognize the potential of our

team members. we’re committed

to their well-being, growth and

long-term success.

2

3

OUR CORE VALUES

16

sTrengThen coMMuniTies we are a source of sustainable funding

for our nonprofit partners, enabling

them to serve more individuals and

families in every community where we

do business.

4

ProTecT The PlaneTthrough the power of reuse, we extend

the life of the goods we purchase, help

protect the environment and fuel small

businesses around the globe.

innovaTe To growwe learn every day, adapt and

continually improve our business in

both small and transformative ways.

5

6


17

Our Model: The Value Village Cycle

we choose to partner with nonprofits to acquire the clothing and household

items that stock our sales floors. our nonprofit partners accept otherwise

unwanted, donated goods from the community. they then sell these items to us,

regardless of their condition, and in doing so establish a steady revenue stream

that supports their missions.

through this model, we provide an essential source of revenue for nonprofits.

In 2015, we paid our nonprofit partners more than $140 million for donated

clothing and household goods, and over the past 10 years, we’ve paid more than

$1.3 billion to our nonprofit partners. these funds go to support our nonprofit

partners’ charitable missions, helping to sustain a wide variety of causes —

particularly those that are important to the communities in which we do business.

VALUE VILLAGE BUYSTHE ITEMS FROM OUR

NONPROFIT PARTNERS.

COMMUNITY MEMBERS DONATE ITEMS TO

A NONPROFIT.

THE OTHER ITEMS ARE SOLD TO RESALE MARKETS AND ARE

RECYCLED.

THE BEST ITEMS GET ASECOND CHANCE ATLIFE IN OUR STORES.

Our Core Values (cont.)


1918

Our Supply Chain: Donated Goods

ensuring the ease and convenience for donors to donate goods to our nonprofit

partners is integral to our business model. our stores can reliably process a

high-volume supply of secondhand goods from which we select the best and

highest-quality product to sell on our sales floors. that’s one of the reasons

why we help make it convenient for people to donate to our nonprofit partners.

they can donate to our nonprofit partners through their at-home collection

services, collection bins or donation stations throughout the community or at

one of the Community donation Centers located at our stores. value village is

a professional fundraiser in the states where it is required, and we ensure our

nonprofit partners are paid for all clothing and household goods delivered to

our stores.

we also recently launched a new method

of collection, fundrive fundraisers.

local schools, sports teams and other

nonprofit organizations host a donation

drive and collect donated goods from

their community and stakeholders. After a

nonprofit collects and delivers the goods to

value village, we then pay the nonprofit for

the items. these fundraisers work well for

nonprofits that are interested in generating

revenue but may be unable to develop a

longer-term partnership with value village.

In 2015, more than 2,300 community-based

nonprofits utilized fundrives to earn

revenue in support of their efforts.

Reuse is Life-Changing — For Everyone

At Value Village, pre-owned goods find more than a

good home.

Our Suppliers: Nonprofit Partners

the vast majority of our suppliers are nonprofits and we pay them based on

an agreed upon purchase price that corresponds to pounds delivered and

value village’s level of involvement in the donation collection process. this way,

our partners can count on a regular revenue stream that helps them do what they

do best — realize their missions. every month, we provide regular payments to

more than 120 leading national and regional nonprofit organizations.


2120

Our Value Extended: Post-Retail even if an item can’t be sold at one of our retail locations, we recognize its potential

to be reused in another way. that’s why we’ve dedicated an entire division of our

business to finding other markets for our goods. Below is an overview of some of

the ways we work to keep reusable goods out of the waste stream:

• Community resellers. our stock is constantly rotating, and just because an

item doesn’t sell during its allotted time on our sales floor doesn’t mean it is

undesirable. no one is more certain of that fact than community resellers who

purchase items to be sold in various marketplaces, often online. If you’ve ever

purchased a used book or clothing accessory from a major online retailer, there’s

a chance you’ve done business with one of our community resellers.

• Local community services. working with our partners for as long as we have,

value village has learned a great deal about the needs of nonprofits — our

partners and otherwise. that’s why we routinely give community nonprofits

items they can use. In-kind donations include coats to homeless shelters,

kitchenware to food banks and books to literacy groups and schools. we’re

always looking for new ways to make sure our merchandise is put to good use.

• Reuse customers. many of our goods can be resold by other businesses, even if

they aren’t suitable for our sales floor. for example, we sell ripped or defective

clothing to businesses that produce rags for sale at home improvement stores.

we’ve also begun collecting plastic — including the bags people use for their

donations to our nonprofit partners — to sell to businesses that create valuable

and eco-friendly post-consumer goods.

Our Customers: The Value Village Experience

At any given time, each of our

sales floors are home to more than

100,000 items. value village team

members introduce up to 10,000

new items to each store’s inventory

every single day. Items we buy from

our nonprofit partners follows a

clearly defined process after they

arrive at our retail locations:

• Sorting. though we see potential in every item, not all goods we buy are

suitable for our sales floors. under the smart guidance of our store managers,

a team of sorting experts separate the goods into four distinct categories:

Resale at retail — items we know fit the quality standards, styles and

sensibilities of our shoppers.

Resale at wholesale — items that cannot be sold at retail based on their

condition (such as garments with small defects, cloth that can be converted

to rags, etc.) but that are still sellable on the wholesale market.

Direct recycling — any item that cannot be reused in its current state and is

sold to recycling customers for component materials or parts; for example,

a broken toy may be sold for its plastic content.

Waste — in some cases, we dispose of items such as soiled clothing or broken

furniture through responsible waste management providers.

• Pricing and stocking. once we finish sorting purchased goods, our team

members price them according to guidelines based mainly on the items’

original value and condition. once there is room for an item on the sales floor,

a value village team member carefully stocks the item in its appropriate section.

Creating meaningful impaCt

2322

• Overseas businesses. much of our unsold merchandise is in demand by resale

businesses overseas, providing a second, or third, life to those items. we sell

and ship goods to resale businesses who — similar to our own intake process

— grade, sort and make available a variety of products that supply business

owners in other countries.

WE RECOGNIZE EVERYITEM'S POTENTIAL

crEAtIng meaningful

impact

24

At Value Village, being a purpose-driven company means

looking for ways to enhance our performance and positive

impact across multiple areas. From the neighborhoods where

our stores are located, to the small businesses we supply used

goods to around the world, we pride ourselves on being a

catalyst for change within all communities we serve. SOCIAL IMPACT our business model relies upon our partnerships with community-focused

nonprofit organizations that we pay for supplying our stores with donated

merchandise. Because of these partnerships, we are able to sell reusable goods

of superior quality while generating a critical revenue stream for our nonprofit

partners. this often provides an extra layer of stability for nonprofits and helps

them better realize their mission to serve local communities.

PURPOSE IS THE PLACE

WHERE YOUR DEEP GLADNESS

MEETS THE WORLD’S NEEDSj.

“ “

- Frederick Buechner

CreAtIng meAnIngful ImpACt

25

Diverse Partnerships

we choose to partner with nonprofits and a wide range of causes that are

important to our communities. some of the causes our nonprofit partner

organizations focus on include:

• Youth and mentoring. our company and its leadership are passionate about

helping young people — particularly youth who are at-risk or are living below

the poverty line. we know that there are many groups doing critically important

work to ensure these children are receiving the care and direction they need

in order to be successful. whether it’s providing classroom tutoring, safe

alternative recreation, or fitness and exercise programs, our partners help kids

in communities across north America and Australia realize their full potential.

eXAmples:

• Services for people with disabilities. during our decades of partnership,

we’ve seen an encouraging rise in the amount and type of services available to

people with disabilities. still, we know there’s much work to be done to provide

adequate assistance in home care, inclusive education, employment and more.

our partners work with both individuals and families, recognizing that truly

comprehensive assistance doesn’t begin and end with any one individual.

eXAmples:


2726

Diverse Partnerships (cont.)

• Medical research. we know that finding cures and better treatments for

certain diseases pose one of the largest challenges facing our country today.

that’s why we partner with organizations working to achieve breakthroughs

in medical research. whether it’s diabetes, epilepsy or a host of other difficult

ailments, our partners fund research that seeks to innovate how we care for

individuals struggling with chronic illness.

eXAmples:

• Veterans programs. our very first nonprofit partner served veterans, and our

company remains dedicated to helping these citizens as they return home

after serving their country. veterans face a complex variety of challenges that

include underemployment, medical treatment and — especially if an individual

is injured during service — transportation. each of our veteran-serving partners

helps local community members and their families to meet important quality-

of-life needs.

eXAmples:

ENVIRONMENTAL IMPACT

By increasing the number of goods we sell at retail or to recycling customers,

we’re able to maximize the number of items kept out of the landfill. we’re energized

every day by the possibility of improving lives through the power of reuse.

An Emphasis on Reuse

reuse is serious business. And it’s our business. the vast majority of the goods

we purchase and process are reused in the item’s original form. In other words,

clothing is often sold again as clothing, rather than as recycled fiber. the vast

majority of books are sold as books, rather than paper pulp. In cases where

this simply isn’t possible, we find a workaround: textiles can be repurposed as

insulation and books recycled into new paper products. All in all, value village

prevents more than 650 million pounds of goods from reaching the waste stream

annually — equivalent in weight to more than 160,000 cars.2

2http://www.nytimes.com/2004/05/05/business/05weight.html


2928

Collection Innovations

without careful consideration, collecting community donations made to our

nonprofit partners can be unnecessarily waste — and carbon-intensive.

for example, poorly targeted marketing can create avoidable paper waste

and inefficient pickup routes can result in increased emissions. Below are just

a few of the actions we’re taking to reduce our impact on the environment

through our operations:

• Online scheduling. we’re rolling out a platform whereby community members

can schedule pickups with our nonprofit partners. this creates efficiency in

staffing and consolidates energy used by traditional call centers.

• Fleet optimization. Alongside our logistics partner, we are making meaningful

strides in reducing the emissions of our collection routes. our truck drivers also

benefit from software that plots the most efficient routes for pickup, eliminating

unnecessary turns and stretches of road.

ECONOMIC IMPACT

value village is a growing company. we open new stores every year, and each

store opening brings a number of tangible boosts to communities’ economic

health. sometimes the benefits come directly from our operations, such as job

creation. In other cases, our partnerships enable other local businesses to succeed.

Small Businesses

though the value village family of thrift stores operates nearly 330 stores,

our global reuse business is composed of relationships with thousands of local

and regional organizations and small businesses.

domestically, we maintain relationships with clothing and book resellers, wholesalers

and more. without suppliers like value village, many of these small businesses

wouldn’t be able to ensure a regular inventory for resale. we’ve developed

relationships with many business owners who regularly purchase unsold goods

in bulk.

overseas, much of our unsold

merchandise is shipped to markets

where there is demand and resale

customers who — similar to our

own intake process — grade, sort

and make available a variety of

products that supply small business

owners with secondhand goods.

these goods include clothes, shoes,

accessories, bikes and household

goods. value village provides these

customers with a strict quality

assurance guarantee, carefully

tracing each shipment and regularly

visiting these marketplaces to

evaluate how our product is

impacting individuals in countries

like Chile, pakistan, Kenya and the

democratic republic of Congo.

30


31

Taxes Generated

we contribute to federal, state/provincial and local communities via the taxes

we generate — more than $200 million in 2015. federal, state/provincial

and local governments directly and indirectly reinvest these resources into

the communities we serve to help fund fire and police departments, schools,

road improvements and more.

Our Stores and Our Team Members

when value village expands into a new market, our business quickly creates a

number of economic benefits for the local community. each store immediately

hires close to 50 team members, each of whom are paid a competitive living

wage with benefits. Additionally, the majority of our store managers are hired

from within the ranks of our employees.

the locations we select are almost always near bus or rail stops, encouraging

our customers and team members to reach our stores via public transit.

each location is also carefully scouted to create value for building owners.

our stores draw both donor and shopper traffic and increase the vibrancy

of retail venues where we are located. our unique business model and reuse

inspired store design have made us a key anchor tenant in many neighborhood

shopping center developments.

4,000 6701,500

5 years 15 years10 years

team members have

been with the company

for more than

Almost more than Another

team members

have been with

the company for

team members

have been with us

for more than


3332

Valuable Goods at Reduced Cost

our shoppers love discovering great deals at our stores. In fact, 96 percent of the

items sold in our stores are under $10 and our average item sells for under $4.50.

these prices represent a fraction of an item’s original value — an important

distinction for those consumers who are shopping with a budget or looking for

a great deal. our optional Club Card program rewards 2.3 million customers

with exclusive offers and promotions that provide further savings. providing our

shoppers with access to quality goods at a great price is an essential part of

our business.

communIty drIVEn

good

34

Whether it’s one of the more than 120 nonprofit partners we

provide with a steady revenue stream by purchasing pre-owned

goods, or our own company’s team members and customers,

our business touches the lives of hundreds of thousands of

people every single day. We continually seek new ways to be

better stewards of our goods and services. In the section that

follows, we’ll share stories of specific partners, organizations

and business activities that showcase these principles in action.

In Focus: Nonprofit Partner Relationships

At value village, purchasing merchandise from our nonprofit partners allows

us to continue to grow as a business while helping these organizations support

their missions. we’re proud to do business with our nonprofit partners,

and our payments provide them with an equally indispensable revenue stream.

our payments to partners are unrestricted and regular, meaning that incoming

funds are predictable and can be applied where they are needed most.

our team members, executive leaders and board members derive great satisfaction

from working with a diverse group of nonprofits that provide essential services across

north America and Australia. the following section includes a few examples of our

partners and the benefits they create within their communities.

ALONE WE CAN DO SO LITTLE;

TOGETHER WE CAN DO

SO MUCH.

“ “

- Helen Keller

35

A snapshot of some of our nonprofit partnerships:

COMMUNITY-drIveN gOOd

3736 3736

Organizational Overview

the disabled American veterans of minnesota (dAv mn) serves as the official

voice of America’s service-connected disabled veterans — a strong, insistent

voice that represents minnesota’s disabled veterans, their families and survivors.

dAv mn provides a network of services free of charge to all veterans and their

families. services are supported by membership dues, charitable contributions

and partnerships. the organization has 30 chapters throughout the state and

more than 19,000 members.

some of dAv mn’s flagship programs include:

• Outdoors Program. Interacting with nature through outdoor recreation has

been widely acknowledged for its therapeutic benefit to help ease veterans’

transitions back into civilian life. launched in 2013, dAv mn’s outdoors program

provides hunting, fishing and other outdoor activity opportunities for chapters

statewide, allowing members to build camaraderie and share facilities and

expertise while enjoying the outdoors.

• Transportation Program. with 87 different counties throughout minnesota and

minimal vA facilities, reliable transportation is critical. dAv mn’s transportation

program provides for veterans in need and is often located in rural communities

with transportation to vA medical Center appointments through its dAv

volunteer transportation program. In 2015, the dAv mn network and volunteers

logged 1.7 million miles, bringing veterans to and from appointments and

improving quality of life for many veterans and their families.

Value Village & Savers Partnerships

Adhering to national bylaws while also

generating revenue to support high-quality

programs for veterans requires dAv mn to

identify diverse revenue sources. In the 1970s,

dAv mn established and ran its own stores,

soliciting clothing and housewares donations

until the early 2000s. In 2004, operations

expanded and dAv mn established

a wholesale service for donated items and

worked with multiple buyers both locally and

abroad. But in 2008, when changes in leadership

and the market began to impact the bottom line

of many dAv mn programs, the organization

looked to savers for support. In 2010, the establishment of a relationship with

savers helped dAv mn grow its enterprise, increase donation collections and

transportation fleet, and double the volume of its business-related fundraisers

from 2010 to 2013.

revenue gained from its sale of clothing and household goods to savers is critical

to the organization’s day-to-day operations. In addition to funding a significant

portion of dAv mn programs, revenue earned from the savers partnership in

2015 was distributed to 28 of the organization’s 30 chapters as well as three

auxiliary units participating in the collection and delivery of donated items to

fund local veterans’ services in their respective areas throughout minnesota.

In 2015, dAv mn’s partnership with savers allowed the organization to provide

quality programs and services in support of the 357,000 resident veterans

and their family members across the state.

Location (headquarters):

sT. Paul, MinnesoTa

“Our programming would not be as robust without Savers.

The funding Savers provides gives us the flexibility and versatility

we need to better advocate and support our members —

something that is difficult to do without a reliable revenue stream.”

JOShuA VRTACNIk

director of operations/deputy Adjutant,

disabled American veterans, department of mn


3938 3938


the Canadian diabetes Association (CdA) is the Canadian charity that helps

11 million Canadians with diabetes or pre-diabetes live healthy lives and educates

those at risk. In communities across Canada, the CdA:

• Offers educational programs and support services

• Develops resources to healthcare professionals on best practices to care for

people with diabetes

• Advocates with those affected by diabetes to governments,

schools and workplaces

• Funds research to improve treatments and find a cure

specific efforts include the CdA’s d-Camps, summer and family camps offered

across Canada attended by more than 2,400 children and youth with type

1 diabetes where they meet and are inspired by each other to manage their

diabetes in a medically supervised setting.

further, over the last 40 years, the CdA has funded $130 million in world-leading

Canadian research that has contributed to the development of new treatments

and devices, ways to prevent type 2 diabetes and the search for a cure.

Value Village Partnership the CdA and value village have worked together to support Canadians with

diabetes since 1985 when value village first entered Canada. this partnership

provides the CdA with $10 million annually for its activities on behalf of people

affected by diabetes.

the partnership is centered on the Clothesline donation program, which collects

gently used clothing and small household items through free pickups from

1.5 million households and 3,500 drop boxes across Canada. through the

Clothesline program, more than 50 million kilograms of clothing are diverted

from landfills annually, reducing donors’ carbon footprint by 130 million kilograms

of Co2 emissions.

“ We have been a partner of Value Village a little more than 30 years.

We grew the program quite quickly because we recognized the

partnership as an opportunity to generate revenue through a social

enterprise to support diabetes programs and research. Our growth

followed theirs.” JANELLE ROBERTSON

vp & general manager,

Canadian diabetes Association

Location: throughout Canada; headquartered in

ToronTo, onTario


4140 4140


As leaders in providing quality mentoring programs for young people,

Big Brothers Big sisters of greater halifax’s mission is to contribute to building

healthy communities through integrity, inclusion, innovation, empowerment and

excellence. to achieve this mission, Big Brothers Big sisters of greater halifax

offers a wide range of mentoring opportunities to meet the varied needs of

volunteers, children and their families. serving as role models, mentors teach by

example promoting healthy relationships with family and peers, instilling trust

and self-confidence and encouraging leadership skills and independent thinking.

Value Village Partnership

Big Brothers Big sisters of greater

halifax’s partnership with value village

began in 1998. over the past 17 years,

the partnership has grown into a rich

relationship beyond day-to-day business

operations.

revenue earned from its partnership with

value village accounts for 26 percent of

Big Brothers Big sisters of greater halifax’s

overall revenue. this revenue is combined

with individual and corporate donations,

fundraising donations from special events, and government grants to fund

agency operations.

In 2015, revenue from value village allowed Big Brothers Big sisters of greater

halifax to serve 491 children and youth. In addition, partnership funding allowed

the agency to provide extra summer activities for more than 100 youth who

would have otherwise been on the waiting list. this created opportunities for

children to interact with one another and also build relationships with potential

mentors, better preparing them for their future match.

one prominent program Big Brothers Big sisters of greater halifax supports on

a national level is Youth in office. forty youth and 40 members of parliament

spend the workday together as part of a joint initiative to inspire young people

about the working world and some of the job options associated with politics

and government in Canada. In advance of their shadowing date, the partnership

equips young men and women with a gift card to a value village store, giving

them the opportunity to shop for a professional wardrobe — promoting career

development and instilling confidence.

As the Big Brothers Big sisters greater halifax agency continues to grow, so does

the need for matches. the long-standing value village partnership helps the

agency to continue to lead the Big Brothers Big sisters movement in Canada

and make a direct impact for youth.

Location:

greaTer halifax, canadaand surrounding areas

“ Simply put, our partnership with Value Village allows us to serve more

kids. With more than 100 kids on the match waitlist at one time, moving

kids off the wait list as quickly as possible is our biggest priority, and

our partnership allows us to do just that..”

CAROL GODDARD

executive director,

Big Brothers Big sisters of greater halifax


4342 4342


founded in 1965, northwest Center is a leader

in advancing equal opportunities for children

and adults with developmental disabilities through

a unique mix of educational, child development

and work opportunity services. more than

1,000 families in the puget sound region benefit

from northwest Center’s early intervention,

early education and employment programs.

northwest Center is driven by the conviction

that inclusion in the classroom, work place

and community is good for everyone. every northwest Center program and

business supports people of all abilities as they learn and work together.

two of northwest Center’s priority focus areas are early Intervention & early

education and employment services for adults with disabilities.

• With 1 in 6 children being diagnosed with a developmental disability, research

shows that early intervention and education services are more effective the

earlier the child is enrolled. to address this, northwest Center provides early

intervention therapy services to children in their home and the community.

their two early learning schools bring children of all abilities together for an

inclusive and powerful approach to education.

• In Washington State, 64 percent of adults with disabilities are unemployed

yet people with disabilities have highly employable job skills and low rates

of absenteeism. to help overcome this challenge, northwest Center works

with adults with disabilities to assess, train, place and support individuals in

competitive employment across the state.

Value Village Partnership northwest Center first partnered with value village just two years after its

founding. In 1967, savers’ founder Bill ellison attended a northwest Center board

meeting and made the case for a partnership based on the idea that the right

business models can produce social good. since then, the partnership has grown

to provide revenue that allows the support of 1,000 families across washington

state and 40,000+ hours of job coaching, training and support. this partnership

is such a success that northwest Center annually gives an award to a community

member or company in Bill’s name who embodies the inclusive spirit.

It’s through partnership that value village and northwest Center are able to support

communities across washington state. value village pays northwest Center for

clothing collected by the Big Blue truck™ and at the Big Blue Bin™ — two of

the community’s most iconic ways to donate clothing and household goods.

these payments account for nearly 15 percent of northwest Center’s annual

revenue. value village also acts as a trusted partner in providing employment

opportunities for northwest Center beneficiaries. we employ several program

graduates in our stores, one of which has been an employed team member for

more than seven years.

But even more deeply, northwest Center’s partnership with value village has

been in many ways a foundation for their organizational philosophy of change:

using business to create social good. like value village, northwest Center looks

to leverage the power of the private sector. over the years, northwest Center

has launched a commercial laundry, a landscaping business and packaging

and distribution center that provide much needed job opportunities for their

beneficiaries and drive revenue back into the organization. It is this approach

to serving their community that has helped value village and northwest Center

work together to achieve such success over the past half a century.

Location (headquarters):

seaTTle, washingTon

“Being an integral part of the Value Village supply chain

has provided Northwest Center with a consistent source of unrestricted

earned income that has enabled us to serve at levels well beyond

what public funding alone can provide. There is something very special

about the autonomy of earning one’s income rather than relying

solely on dwindling public funding sources.”NORThWEST CENTER

44

CommunItY-drIven good

45

Reuse Customers: Chile

our goods sold to recycling customers in Chile are

purchased both locally and in other destinations.

As items arrive, our customers employ local workers

to unload, sort and present the goods to their retail

and wholesale consumers. A single Chilean recycler

can prevent as many as 10 million pounds of secondhand

goods (e.g. shoes, toys, backpacks purses and household

items) from going to waste annually while reaching

communities in need of goods.

Reuse Customers: Democratic Republic of Congo

goods sold to our recyclers in the democratic republic of Congo are shipped

out to consumers in lubumbashi, goma, Bukavu, Butembo and Kinshasa as well

as customers in Kampala, uganda. similar to our Chilean customers, items like

kitchenware, shoes, backpacks, purses and toys are diverted from disposal in

landfills and are ultimately purchased by individuals looking for imported goods.

these recyclers employ Congolese and ugandan workers to unload and make

accessible millions of pounds of value village goods for resale annually.

In Focus: Our Reuse Customers

every day, up to 10,000 new items are introduced to each value village store’s

sales floor. Because each floor has a maximum capacity of around 100,000

items, many unsold products — along with items that for a number of reasons

cannot be stocked at our retail locations — go on to find second lives via our

recycling customers.

reselling used products is a growing industry, and customers all over the world

purchase goods in bulk from organizations like value village. we hold our

products to a high-quality assurance standard, and each unsold product is

‘graded’ according to its quality and grouped with other like items. Because of

this, our recycling customers know exactly what they’re purchasing, which leads

to much lower levels of inefficiency and waste downstream in the supply chain.

our commitment to quality assurance also makes us a preferred supplier for

many reuse and resale customers around the world who know value village

for our reliability, consistency and professionalism. we’re discerning in who we

choose to do business with and work with organizations who are like-minded in

our desire to extend the life of usable goods. we’re loyal to our customers in the

resale industry, and our new business relationships often turn into longstanding

engagements, with value village regularly providing 85 to 90 percent of our

recycling customers’ entire inventories.

In the following section, we’ve included stories from just a few of our reuse

customers around the world.

46

CommunItY-drIven good

47

In Focus: Our Business

Nonprofit Partner Conference

Any improvement to our nonprofit partners’ donation solicitation, scheduling and

pickup activities is an improvement to our business. further, our team members

truly care about the success of our partners’ social missions.

Because we’ve learned that sharing best practices is one of the most effective

ways to increase knowledge and performance among our partners, we hold

a nonprofit partner Conference every other year that convenes hundreds of

representatives from our partners across north America. our next conference

will be in 2017.

the conference is comprised of workshops, panels and keynote sessions that

help our nonprofit partners address the challenges and opportunities that are

associated with operating a donation collection service. the conversations and

resources shared during this conference focus on elevating the best ways to work

together to thrive. often this means positioning our partners to do what they do

best: building the strength of their organizations and their ability to support their

communities while giving new life to locally sourced products.

A Fun (and Responsible) Halloween

the halloween season is one of the most important times

for value village’s business. Costume apparel is the most popular item

category at our stores during october, and our customer traffic

grows about 50 percent during this time period.

the weeks surrounding halloween have taken on special significance for

value village, and we recognize the opportunity to do more of what we do

better than anyone else — help our shoppers create unique, one-of-a-kind looks

that utilize used items. our stores offer a wide selection of gently-used and new

costumes, accessories and home décor, which means there’s a costume to match

every budget. we’re proud to provide our shoppers the selection and value

needed to deliver the perfect match.

we are MoTivaTed To find

new and innovaTive ways To assisT

our ParTners wiTh Their goal of

collecTing More goods as donaTions.

92 percent of parents

say their kids dress up.

the vast majority (68 percent of

respondents) usually don’t buy new

packaged costumes; instead, they

combine new and used, make outfits

by hand, repeat costumes or borrow

from others.

ThrifTyand proud of it!

Six in 10 respondents typically wear halloween costumes.

ACCORDING TO OUR LATEST HALLOWEEN SURVEY...


4948

Celebrating Eco Fashion

In a partnership that dates back to 2012, value village and eco fashion week

have teamed up to host sustainable fashion events in Canada and the united

states. these events celebrate the design and aesthetic potential of secondhand

goods and feature a runway showcase with high-fashion looks composed entirely

from items found at our stores.

In addition, the events regularly feature an “81-pound Challenge,” where fashion

designers are asked to create unique styles from 81 pounds of used clothes —

the amount each north American throws away on average every year. the final

outfits are spectacular in both aesthetic appearance and their ability to convey

the significant quality and sheer volume of textile material consumers throw away

annually.

since we first began the eco fashion partnership, we have had to change the

name of challenge, as per person clothing waste has increased from 68 pounds

per year to 81 pounds per year. this trend demonstrates the continued challenges

of textile waste and the importance of reuse in reducing how much we as a

society send to landfills every year.


5150

PotEntIAL realized

In Focus: Our Shoppers

“thrifting” is becoming increasingly

popular among shoppers everywhere.

we partnered with Kelton research

(a distinguished third-party research firm)

to conduct a survey of u.s. consumers

in 2015. the survey found that close to

80 percent of respondents have shopped at thrift stores and almost 40 percent

of thrift shoppers visit thrift stores at least monthly. we know that shoppers

find value in thrifting because it’s affordable — 77 percent of respondents feel

it’s important to get a good value for their money when shopping. But, we also

know that shoppers enjoy thrifting because it feels like a ‘treasure hunt.’

Almost 40 percent of shoppers place importance on finding unique items for

their wardrobes or homes.

the survey also demonstrated a distinct consumer preference for businesses

that protect the environment. In fact, 73 percent of respondents prioritize the

environment when shopping and more than 60 percent feel it’s essential that

they recycle.

our shoppers, like our communities and team members, are diverse. thus, we’ve

created a shopping environment that is welcoming to customers of all ages,

races, genders and socioeconomic backgrounds. many of our shoppers see the

potential in unique or everyday objects and look for ways to creatively upcycle

and reuse items found in our stores. others simply want good quality items at

affordable prices. regardless of why our shoppers enter our stores, we make

it a point to ensure they feel welcome and comfortable while hunting down their

next great find.

I THRIFT TO: GET A GOOD VALUE FIND A TREASURE

PROTECT THE PLANET

potential realized

53

In the 61 years since our founding, Value Village has never

once posted a decrease in our annual sales figures. this is a

rare feat in the volatile world of retail, and we’re proud to

be the exception. Still, because our business helps create

social and environmental benefits, we’re never quite satisfied.

that’s why we’ve taken the time to reflect on our recent

growth, taking stock of the opportunities that will best position

our company for additional impact. Each of the sections below

shows the steep rise in social, environmental and economic

impact we’ve been able to achieve over the past decade.

these figures also help to demonstrate that as we grow, so

does our ability to benefit communities through nonprofit

partner support, reuse and job creation.

we’re energized and excited by

the benefits our partners will create

with these additional resources.

It means more mentored youth, more

veterans cared for, more people with

disabilities served and more potential

realized. our total payments in 2015

continue a trend of exponential

growth for our contributions to our

nonprofit partners. the last 10 years

of payments have eclipsed those

from the first 50 years combined,

and that’s a trend we are working to

see continue.

$140 Million for donaTed goodsIn 2015, we paid our nonprofit partners more than

Nonprofit Partners

52

TO UNCOVER YOUR TRUE POTENTIAL YOU MUST FIRST FIND YOUR OWN LIMITS AND THEN YOU HAVE TO HAVE THE COURAGE

TO BLOW PAST THEM.

“

“

- Picabo Street

potential realized

5554

over the years, our relationships with

our partners have grown and evolved,

and our business has expanded

from a string of regional stores to a

global organization that operates in

multiple countries around the world. what hasn’t changed is our commitment

to improving lives through the power of reuse and our focus on employing

innovative tactics to keep goods out of landfills.

while this report looks back on our progress in 2015, we’re in the midst of

working to raise awareness and urging everyone to “rethink reuse.”

rethinking reuse includes, but is not limited to, shopping thrift, donating

unwanted goods to nonprofit organizations versus throwing them away,

and consuming in a more responsible way. By sharing the urgency of addressing

textile waste with our communities, we’re actively helping consumers rethink

how we as a society can reduce our impact, and we are excited about helping

to make that a reality.

we plan to expand on this work in the years to come. with our rethink reuse

initiative, we aim to start a dialogue, expand awareness and build knowledge

around the environmental impact of clothing waste. we want to engage our

communities in making an impact on this important issue.

we also are working to reignite our commitment to community impact. As a

social purpose business from the beginning, we have always been focused on

impact in our communities. But we also know that we can do more. As we look

ahead, we are focused on continually clarifying our vision for our organization,

better engaging our team members, stakeholders and industry allies on the

power of reuse, and continuing to look for more market innovations to upcycle

and resell product.

we thank you for your interest in our Community Impact report and welcome

your feedback on how we can continue to improve. please contact us at

[email protected].

Looking Forward

we’re proud of the amount of goods we recycle, and we’re constantly looking

for ways to reduce our current waste by finding new and innovative ways to

repurpose reusable materials.

In fact, extending the life of an item is so important to us that we’ve dedicated

an entire division of our business to reusing and recycling goods. over the

last decade, our largest recycling center in north America has doubled in size

through the ingenuity of our team members not only at the center but in our

stores. working in tandem with local government, waste management partners

and recycling customers allows us to continually dispose of fewer unsellable items.

we’re always looking for smart, passionate and savvy team members to help

lead our stores. In an era of consolidation among industry peers, value village

hopes to increase our economic footprint within the community. By opening

new stores, we provide jobs to a diverse range of candidates, regardless of

ethnicity, gender, sexual orientation, age or appearance. next year, we hope to

decrease turnover while employing a strong new corps of team members.

65o Million Pounds of reusabale goods from entering the waste stream in 2015.

together with our nonprofit partners, our stores diverted more than

Reuse

Business & Jobs

Savers I Value Village is a registered professional fundraiser. For more information,

go to https://www.valuevillage.com/disclosures.

Printed on 100% recycled paper.

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