Analyzing the global experience in the development of business models of a closed-loop economy in trade

Subject. The study deals with formation of effective circular business models in trade. Objectives. The aim is to overview the existing circular business models in the retail sector, identify barriers to their implementation and efficiency factors. Methods. The study draws on the multiple case study method. The information base was research and surveys by Deloitte consulting company, official websites and reports on sustainable development of trading companies. Results. We established that the transition to cyclical models poses a number of problems for the retail business. They relate to both the actual measures and their budgeting. To identify processes and costs, it is necessary to determine the best cyclical business model, develop a follow–up business plan, and mobilize teams to move towards the goal and set benchmarks. We offered an algorithm to decide on the most appropriate circular business model in retail, depending on the price category of goods, duration of their life cycle provided by the manufacturer, and available infrastructure and labor resources. Conclusions. The developed algorithm can help companies in the retail sector to make the process of transition to circular models less costly and more efficient.