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Market analysis··2 min read

Circular Retail Concepts as an Impetus for Urban Development: An Analysis

A new white paper highlights the potential of circular retail concepts, which combine resource conservation with local value creation and open up new perspectives for retail properties.

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Circular Retail Concepts as an Impetus for Urban Development: An Analysis. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The white paper "Circular Retail Concepts as a Municipal Model" analyses in detail how municipalities can practically implement the circular economy in retail. The focus is on curated second-hand assortments, comprehensive repair services, and interactive workshops. These concepts utilise existing infrastructures such as recycling centres to tap into goods flows, reprocess them, and specifically reintegrate them into local retail. This combines resource conservation with local value creation, while simultaneously creating new points of contact for consumption and social exchange. The format is designed to make sustainable consumption accessible to a broad population.

Markus Wotruba, Head of Location and Real Estate Consulting and a member of the management board at BBE Handelsberatung, points out that second-hand has established itself as an integral part of retail and is no longer considered a niche phenomenon. This development makes circular retail concepts particularly attractive for the repurposing of vacant retail properties. He emphasises that these concepts go beyond the sale of checked used goods and, in combination with repair, workshop, and educational offers, become places of exchange and encounter. This promotes both reuse and provides new impetus for urban development.

Implementing circular retail concepts requires careful selection of location and format. The concepts are realisable in different sizes, from smaller pop-up stores to department store formats. Good accessibility and a high-frequency location are crucial factors. City centres often offer excellent conditions for this. District and neighbourhood locations can also be suitable, provided there is sufficient local demand. The property itself must meet the concept's requirements in terms of space and fittings. A combination of sales areas with workshops, as well as event and lounge areas, should be strived for. Efficient organisation of delivery and storage must also be ensured.

Scaling within a city is possible by linking several locations through central merchandise management and logistics, thereby creating synergies and allowing a municipal model to be gradually expanded.

Various cities in Germany are already demonstrating the successful implementation of such models. Examples include the NochMall in Berlin, Halle 2 in Munich, Wiederschön in Leipzig, and the ZIRKA project in Nuremberg. BBE Handelsberatung supports municipalities and other stakeholders throughout the entire process, from initial site and market analysis to concept development and economic viability assessment. As part of the ZIRKA project in Nuremberg, which began with a temporary pop-up in 2026, the opening of a permanent space in Nuremberg city centre is envisaged for 2027. The white paper also contains a BBE Quick-Check, which offers municipalities initial guidance on the potential and relevant aspects of circular retail formats.

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