Why NRF Acquired the Reverse Logistics Association
The National Retail Federation (NRF) has acquired the Atlanta-area Reverse Logistics Association (RLA), bringing U.S. retail’s largest trade association deeper into returns, logistics and the circular economy.
Shoppers returned more than $816 billion worth of retail purchases in 2022, a 7.2 percent increase from the year prior, according to survey commissioned by Washington, D.C.-based NRF and Appriss Retail.
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According to Grand View Research, the global reverse logistics market was valued last year at an estimated $731.3 billion. But it is projected to grow at a 9.4 percent compound annual growth rate (CAGR) from 2023 to 2030, reaching $1.45 trillion. Product recalls are one factor fueling the rise in returns.
The acquisition announcement came during the RLA Leadership Summit in Atlanta. With the deal, NRF can now incorporate more logistics expertise into its offerings, which include the annual NRF Big Show in New York as well as other events. The organization also has a nonprofit philanthropic arm, the NRF Foundation, and offers projections and analysis on the state of retail, the supply chain and the economy.
NRF said the acquisition was part of the association’s “unrivaled” commitment to support sustainable practices in the retail industry.
“Sustainability and circularity continue to grow in importance for both consumers and retailers,” Jonathan Gold, vice president of supply chain and customs policy, NRF, told Sourcing Journal. “NRF’s acquisition of RLA will help further promote scalable, sustainable solutions throughout the entire retail supply chain ecosystem.”
Sixty-nine percent of U.S. consumers say they are willing to pay more for environmentally sustainable products, according to Blue Yonder’s February survey.
“NRF has a long history of convening supply chain professionals to collaborate and develop resources that improve the retail industry. Retailers understand the importance of sustainability practices and the environmental, economic, social and consumer benefits that accompany them,” NRF president and CEO Matthew Shay said in a statement. “As consumer demand for sustainable offerings continues to increase, RLA’s reverse logistics expertise will help our members to ‘close the loop’ and accelerate the emergence of the circular economy.”
The circular economy promotes reusing or recycling useful products, materials and resources. While hundreds of retail brands already offer “gently used” or “pre-loved” products, others still sell excess inventory at a discount. The reverse logistics industry can maximize the efficiency of the circular economy by collecting, sorting, repairing and refurbishing products for resale or recycling.
Resale and secondhand shopping are significant drivers of circularity. In apparel alone, the global secondhand market is set to nearly double by 2027, reaching $351 billion, according to ThredUp’s 11th annual Resale Report.
The RLA name will hang around for the foreseeable future, NRF said.
“Joining NRF is an exciting opportunity for RLA and our members,” said RLA executive director Tony Sciarrotta. “NRF recognizes reverse logistics as the backbone of the circular economy and understands how it plays a vital role in broader sustainability initiatives for the retail industry. Through this partnership, RLA will continue to reach industries investing in the circular economy and enhance NRF’s long-term commitment to retail’s supply chain and sustainability efforts.”
