How Retailers & Brands Can Support a Circular Economy

We live in a time where customers view products as more than just items to purchase and gateways to the latest trend. More than ever, they’re looking at brands through a sustainability lens, and particularly within Gen Z: young consumers are 27% more likely to buy from businesses that are genuinely walking the sustainability talk.

In other words, being “green” isn’t just a nice bonus anymore - it can often be a dealbreaker for consumers, and brands and retailers have taken the hint. To meet these shifting expectations, many brands and retailers have embraced the circular economy not just as a sustainability flex, but as a real commitment to doing better. But what exactly is the circular economy, and how does it work in practice? Let’s find out!

What is a Circular Economy?

Like its name suggests, the circular economy refers to a business model that aims to minimize waste by reusing, repairing, refurbishing, and recycling products, materials, and resources. Unlike the traditional linear economy, the circular economy minimizes waste by keeping products and materials in use through resale and reuse. It’s about extending the life of products, components, and materials to reduce the environmental impact of production and consumption.

At its core, the circular economy flips the script on how we see products, materials, and consumption - turning “use and toss” into “use and reuse.” It's not just about buying and discarding; it’s about giving products a longer life, cutting down waste, and reimagining the retail landscape in a more eco-friendly way.

Circularity: Great for the Planet, Great for Business

The circular economy isn’t a new idea, but it has taken center stage in recent years as environmental sustainability becomes increasingly urgent. Given its environmental impact, the need for this movement is greater than ever, offering benefits like less waste, lower use of finite resources, reduced carbon footprint, and significant cost savings. However, the benefits go beyond just the environment - they also offer significant advantages for businesses, such as:

Boosting in-store traffic: Implementing circular economy practices can increase store traffic by attracting eco-conscious consumers who prioritize sustainability in their shopping habits. Offering secondhand or refurbished products, repair services, and trade-in programs create new reasons for customers to visit their stores!

Building customer loyalty: Customer loyalty can be built by aligning with consumers’ growing demand for sustainability and ethical business practices. As shoppers become more environmentally conscious, they seek out brands that favour long-term value over short-term consumption. By offering services like those I mentioned above (including resale options and rental models), brands create an ongoing relationship with customers rather than a one-time transaction. These initiatives keep customers coming back, building trust and strengthening their connection to the brand.

Reducing returns: By focusing on durability and second-life programs, brands ensure customers get high-quality products that won’t end up back on the shelf due to defects or dissatisfaction. Plus, circular practices also encourage retailers to provide clearer product descriptions, sustainable packaging, and digital tools like augmented reality and virtual reality, helping shoppers make smarter choices upfront and keeping returns to a minimum.

Showcasing passion and commitment: Participating in the circular economy sends a strong message that your business cares about the environment by turning values into action. By implementing circular practices and having official certifications, companies can demonstrate that sustainability is not just a marketing message but a core part of their operations. 

Creating upsell and cross-sell opportunities: When customers bring in products for resale or recycling, retailers have an opportunity to upsell new items or cross-sell related products, increasing revenue. For instance, repair services give brands and retailers the perfect chance to upsell customers to premium or upgraded versions when they bring in older items. Likewise, refurbished and secondhand goods open the door for cross-selling add-ons like accessories or warranties, turning sustainability into a smart strategy that benefits both businesses and consumers.

The Circular Economy in the Market

By practicing what they preach, businesses are finding innovative ways to extend product lifecycles and minimize waste. Here are some standout brands and retailers leading the charge in circularity!

Fashion 

Asket is a Swedish fashion brand known for their commitment to timeless clothing and radical transparency. Unlike fast fashion, Asket focuses on permanent collections rather than seasonal trends, minimizing waste and encouraging consumers to purchase high-quality, long-lasting clothing. And it doesn’t stop there. Through their repair and resale outlet, Asket ReStore, they refurbish and resell previously owned garments, keeping their clothing in circulation and out of landfills or incinerators. 

Here’s how it works: Customers who want to return their pre-owned (and washed!) Asket garments can do so through the brand’s platform in exchange for store credit. The returned pieces are then inspected, cleaned, and refurbished before being resold at a lower price, ensuring they stay in circulation rather than being discarded. If items need minor repairs or alteration, Asket restores them to ensure they’re ready for a second life.

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By offering secondhand options, Asket extends the lifespan of their products, proving that good style never goes out of fashion—nor does sustainability. Their initiative not only reduces textile waste but also provides customers with a more sustainable way to shop, making long-lasting clothing accessible while minimizing environmental impact. 

To take things a stitch further, Asket partners with Fabrikörerna, a Swedish west coast organization that specializes in mending clothing and repurposing deadstock materials. Beyond textile revival, Fabrikörerna also serves as an integration project, helping immigrants learn Swedish and settle into their new communities. Through this partnership, Asket not only weaves together circular fashion but also supports social sustainability, proving that responsible business practices can make a meaningful impact beyond clothing!

Food & Beverage 

The circular economy extends beyond traditional retail, and the mobile app, Olio, presents an innovative way to tackle food waste at the community level. Unlike platforms that focus on selling surplus food, Olio connects individuals, local businesses, and even supermarkets to share excess food for free. Whether it’s extra groceries, unopened pantry items, or fresh produce from a home garden, users can list and claim food that might otherwise go to waste, promoting a culture of sharing and sustainability.

For businesses, Olio makes food waste a thing of the past by offering an easy way to redistribute unsold food instead of throwing it away. Supermarkets (such as Tesco!), bakeries, and restaurants can donate excess stock, helping them cut waste disposal costs while contributing to local food security. By partnering with businesses and community volunteers, Olio ensures that perfectly good food finds plates, not landfills.

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At an individual level, neighbors can use Olio to share food within their communities, making it easy to give away surplus items before they expire. Got extra home-cooked meals, too many groceries, or produce you won’t finish? Instead of letting it go to waste, simply list it on the app and let a neighbor pick it up. It’s like a digital “borrow a cup of sugar” moment—but for full meals! This simple list-and-pickup system makes sharing easy, reducing waste while building stronger community connections.

From an environmental standpoint, Olio plays a significant role in reducing food waste and lowering carbon emissions. By preventing food from being discarded, the app helps minimize methane emissions from decomposing food in landfills and conserves the resources used in food production, such as water, energy, and labor. With its community-driven approach, Olio turns waste reduction into a shared mission, making sustainable living not just possible, but deliciously easy!