Circular Retail Helps Brick and Mortar Fight Back Against E-Commerce

While all eyes have been on the occupancy-challenged office buildings or the thriving industrial space, retail real estate has been going gangbusters. Not even the notable list of retailer bankruptcies and accompanying store closures has slowed the retail real estate market. Brick-and-mortar retail is alive and well, despite the predictions that it would be replaced by e-commerce. A burgeoning sector, circular retail, is yet another adaptation helping brick and mortar retail fight back against its online competition. Circular retail plays off the growing demand for reused or repurposed products (think yesterday’s thrift store or second-hand shop) and it’s an emerging segment of retail that will likely become a larger part of our in-store spend.

Circular retail is growing in popularity for a couple of reasons, one of which is its inherent eco-friendly nature. The reuse of products plays to consumers’ growing dedication to sustainability. Another reason is the economy, circular or resale retail appeals to cautious consumers’ pocketbooks. At one time “second-hand shopping” may have been relegated to the 20-something crowd or lower-income shoppers, but the resale world has evolved to embrace consumers of all types. 

Aside from Goodwill, circular retail activity is predominantly Internet-based, like online consignment and thrift store thredUP and peer-to-peer thrifting platform Poshmark. But increasingly, circular retailers are expanding their online platforms with the addition of actual stores to provide customers with the “in real life” experience. “I think these online resellers’ physical stores really offer an opportunity for discovery that the consumer is looking for,” said Alanna

Read more at Propmodo.

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