Unlocking Profits: How Embracing Circularity is Revolutionizing Business Strategies

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Unlocking Profits: How Embracing Circularity is Revolutionizing Business Strategies

In the journey toward a circular economy, businesses are finding their footing. It’s clear that sustainability efforts must benefit consumers, the planet, and businesses alike.

At NRF 2025: Retail’s Big Show, leaders from IKEA, Target, and Walmart shared their sustainability initiatives. Moderated by Scot Case from the National Retail Federation, the discussion highlighted the importance of education and outreach in creating positive impacts.

Agata Ramallo Garcia, Target’s vice president of enterprise sustainability, noted that consumers don’t always think about sustainability. However, they are open to solutions that match their needs for affordability, convenience, and quality. Target’s innovative car seat trade-in event is a great example. Since its launch in 2016, they have recycled over 3 million car seats, saving around 45 million pounds of materials from landfills. This initiative not only resonates with customers but also strengthens the supply chain.

Walmart is also taking strides. They are working with vendors to identify items that can be reused or recycled. Their new Resold at Walmart marketplace now offers gently used products like apparel and electronics, promoting secondhand shopping. In less than a year, they’ve added about 5 million products from 1,500 sellers, providing customers with budget-friendly options and extending the life of items.

Furthermore, Walmart is tackling food waste by partnering with Denali to recycle unneeded food. This initiative allows employees to focus on customer service while converting organic waste into animal feed, compost, or energy. Their ecoATM kiosks let consumers recycle old phones for cash, making it easier to contribute to sustainability.

IKEA is embedding sustainability into its core strategy. Each country’s CEO also acts as the chief sustainability officer. They aim to be 100% circular by 2030, releasing a Circular Product Design Guide to innovate products for longevity and reusability. Their buy-back program helps resell used furniture, while the SILVERSIDA series creatively converts production waste into new tableware.

Mardi Ditze from IKEA emphasized that circularity requires time and commitment. “It’s a long game,” she stated. This approach not only needs robust infrastructure and partnerships but also innovative business models. There’s significant potential in the circularity market, encouraging new ways to think about supply and resources.



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Retail's Big Show, Consumer Trends