Linear retailers going circular: the logistics implications

Purpose This paper seeks to answer the question: What are the logistics implications when linear retail business models are complemented with circular ones? In particular, this research targets logistics implications perceived as critical for supporting circular business models (CBMs) that are economically viable. Design/methodology/approach The study adopts a multiple case study design involving seven Swedish retail companies operating a total of eleven CBMs, including second-hand sales, rentals and repair services. Empirical data were mainly collected through semi-structured interviews, and the analysis followed a Gioia-inspired approach informed by a narrative literature review on logistics implications that arise when retailers combine their forward and reverse logistics operations. Findings The study identifies 16 empirically grounded logistics implications across the four reverse logistics (RL) activities of collection, sorting, recovery and redistribution. The results reveal the coexistence of two overarching perspectives on logistics implications when combining forward and reverse logistics: an extension perspective emphasising challenges, and a design perspective highlighting various design areas for integration. Research limitations/implications The study is limited to Swedish retailers. Further studies in other geographical contexts are suggested. Originality/value The research goes beyond the existing, often generic and conceptual literature on barriers to RL operations and provides a more granular view of the role of logistics in retail CBMs. By articulating complementary analytical perspectives, the study advances theory on the integration of forward and reverse logistics in a retail setting.