Retail is at a pivotal point as the market shifts to closed-loop systems and businesses adopt circular practices to manage products throughout their lifecycle in response to regulatory requirements, cost savings, resource efficiency, and consumer demand for sustainability. Retailers face higher costs from unsold stock, forcing higher prices on consumers, while the environment bears the brunt of unnecessary waste and carbon emissions. Waste directly impacts margins, forcing businesses to absorb losses from unsold products or excess inventory. 

Enter the circular production and consumption re-commerce model, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible to extend their life cycle and create further value. It contrasts with traditional consumerism by aiming to minimize waste and environmental impact; driven by economic savings, job creation, resource conservation, and contributions to mitigating climate change. And re-commerce is revitalising retail across the world. 

Innovative solutions to support brands and retailers in a re-commerce market expected to reach $1.24 trillion globally by 2035 are springing up everywhere. For example, Finnish start-up Renow offers merchants a complete solution using agentic AI for product returns, encompassing remote inspections, grading and re-sale – eliminating the need for merchants to invest in their own infrastructure. Non-profit Re-Commerce Atacama is clearing out discarded clothes choking Chile’s Atacama Desert – a landfill now so big it can be seen from space. They take landfill clothing – from fast fashion to designer brands – and sends them to customers for only the price of shipping.  

The road to re-commerce requires reshaping consumption patterns and production processes.

And the benefits are big. Think greater business resilience, potentially new customers, and innovation opportunities. In addition to meeting sustainability business objectives and consumer expectations, businesses can also address the entire product lifecycle, benchmark higher standards and transparency across the supply chain, and de-risk vendor management. Embracing a circular economy can also help retailers and brands reduce waste, promote sustainability, and enhance profitability. Underpinned by a transition to renewable energy and materials, it is a resilient system that is good for business, people, and the environment.  

We love how Australian start-up Fresho is using AI to process fresh food orders received through multiple channels, converting them into structured data in real time. It also offers live pricing and product availability. Suppliers benefit from automated dashboards reducing manual data entry and improving accuracy while restaurants gain tools for better food cost management. With more than 30 million orders processed since its inception, Fresho’s technology has reportedly reduced wastage by up to 40 percent for some suppliers. 

Transitioning to a circular strategy is a differentiator for retailers. And the secret to re-commerce success is Circana’s unrivalled supply chain solutions, data and analytics will optimize operations, improve forecasting and replenishment rates, enhance retailer collaboration, mitigate risks caused by disruptions, enhance customer experiences, and contribute to a more circular economy. Learn more in Circana’s Revitalising Retail Outlook Report.