The role of logistics in circular retail business models

Pieces of fabric in different colours
The circular trade is growing rapidly in Sweden. According to the Svensk Handels Preloved indicator, the second-hand market alone generated 1 billion SEK in December 2023.

An important step towards more sustainable trade is to introduce and scale up circular business models. This is especially true for consumer- and trade-oriented models that aim to extend the lifespan or increase the usage of a product, such as through second-hand sales, rentals, or repairs. However, the underlying logistics in these flows are challenging and relatively under-researched.

If Swedish trade is to successfully introduce and scale up profitable circular business models, more knowledge about the logistics behind these models is a crucial piece of the puzzle.

The purpose of the project is to explore the current and future role of logistics in various circular business models in trade. The primary goal of the project is to provide a new, comprehensive understanding of the significance of logistics operations in current and future circular business models in trade. The focus is particularly on the importance of logistics for creating profitability in circular business models.

The knowledge generated by the project is intended primarily to support trading companies in their development and scaling up of more efficient, and thus more profitable, circular business models. This is achieved through the project’s three main research questions, which focus on the role of logistics in current and future circular business models.

  1. What role does logistics play in today’s circular business models?
  2. What role will logistics play in future circular business models?
  3. What capabilities related to logistics operations are required to develop future circular business models?

In line with our overarching purpose and research questions, we see that the project will, in the short term, contribute to a clearer understanding of the role that logistics plays in creating profitability in circular business models. This includes better understanding the “peculiarities” and challenges of circular logistics and how costs and revenues are affected by logistics operations.

By highlighting the importance of logistics for circular business models, the project will, in the long term, contribute to creating debate, discussion, and learning within Swedish trade regarding the practical design of future circular business models.

Project time: April 2024 to December 2026

Project partners

GIAB
Polarn O. Pyret
Stadium

Researchers

Financiers

Organisation