Context

Our client, a multicategory retailer focused on household goods and under significant margin pressure, was participating in a series of circularity-based services such as repair and recycling, some directly, and some through third parties.

They sought our support to explore their hypothesis that there was significant potential to grow attractive new business models in this segment, with an emphasis on maximising existing capacity and expanding with minimal up-front investment.

Approach

Working closely with the internal business leaders who would later drive the expansion, we mapped the client’s current participation in the range of circular economy services including reuse, repair, recycling and leasing.

Looking externally, we assessed the market potential across this value chain, working category by category due to significant differences in approach required for different product types. We then assessed the operational requirements for a successful buildout.

Having agreed the most attractive models, we built a series of detailed business cases for approval.

Impact

The client’s board agreed to develop a number of the proposed businesses, including expansions of existing models, accelerated development of earlier-stage services, and some moves into brand new territory.

These are now all being developed by our in-house teammates, initially via a ‘test and learn’ approach.