The Circularity Index report, based on a survey of 150 senior decision-makers at mid-to-large retailers, reveals that while 86% of surveyed retailers have adopted measures such as resale, refurbishment, repair, and recycling, just 9% are able to resell more than half of their returned products at full price.
On average, 12% of returned items generate no value for retailers, highlighting the ongoing challenge of converting returns into commercial gains.
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The findings indicate that circularity has “moved beyond” isolated initiatives in the retail sector, but consistent value recovery from returned stock still lags behind the broader uptake of these practices.
According to the report, only 27% of respondents view circularity as central to their returns strategy, while 62% reported regular efforts to recover value from products that cannot be resold.
The research also found that 82% of retailers see potential to increase the value generated from up to half of their returned stock by improving recommerce strategies.
Advanced Supply Chain UK & European sales director Stuart Greenfield said: “Retailers have made clear progress in building circularity into their returns strategies, but the data shows that having a circular process in place does not necessarily mean retailers are maximising the value of every returned product.
“Returns have traditionally been treated primarily as a cost: measured through transport, processing and warehousing spend. The opportunity now is to look at what comes back as inventory with potential value, and determine the best route for each item, whether that is resale, refurbishment, repair, donation or recycling.
“That requires greater visibility and better decision-making throughout the returns journey. What happens after a product comes back can have a direct bearing on margin, waste and the wider performance of a retailer’s circularity strategy.”
The report also highlights a regulatory shift driving change in retail operations. New rules, including the EU’s Ecodesign for Sustainable Products Regulation (ESPR), are requiring retailers to pay greater attention to the final destination and value of products after their original sale.
ReBound Returns sustainability head Inge Bujakiewicz-Baars said: “Regulation is bringing circularity further into day-to-day retail operations. The focus is moving from commitments and targets towards the practical question of what happens to products once they can no longer be sold in their original form.”
The survey was conducted by strategic insight agency Opinium in July 2026 and covered senior executives responsible for returns management, supply chains, and sustainability at large UK and major EU retailers.
