In a recent article for WeComm, Tern Co-founder Zoe shares why circular retail isn’t just a trend - it’s the future of the industry. She breaks down the challenges, opportunities, and why now is the time for retailers to make the shift.
In today's rapidly evolving retail landscape, sustainability has transitioned from a mere buzzword to a critical business imperative. Retailers are grappling with challenges such as low growth, diminished customer loyalty, disrupted supply chains, high costs of goods sold (COGS), shrinking margins, and increasing pressure from stakeholders and customers to adopt sustainable practices. Additionally, a wave of Environmental, Social, and Governance (ESG) legislation is on the horizon, further emphasising the need for change.
Traditional strategies - like relying on deep discounting and constant promotions - often lead to a detrimental cycle that erodes profits and harms the environment. The outdated linear 'take-make-waste' model is becoming unsustainable in the face of resource scarcity, changing consumer expectations, and climate urgency.
Enter Circular Retail - a transformative business model built around keeping products in use for longer, and regenerating natural systems. It’s not just an environmental ideal - it’s a competitive advantage. Circular models encourage durability, repairability, and reuse, allowing retailers to increase customer lifetime value while reducing operating costs.
From resale to repair services and rental models, forward-thinking brands are already integrating circularity into their operations—and seeing real results.
“Retailers must begin to think circularly to survive and thrive in the years ahead.”
— Zoe, Co-Founder of TERN
At TERN, we’ve seen firsthand how circular retail can open up new revenue streams, build brand loyalty, and contribute to a more sustainable future for all. The time to shift is now.
