Selfridges is moving into the scale-up phase of circularity, following two years of pilots and testing of new circular business models under its Project Earth Initiative. As a department store, Selfridges has less control over the environmental footprint it has agreed to reduce to net zero by 2040, while also needing to innovate to maintain relevance in a difficult retail sector. Selfridges is putting circularity at the centre of its strategy, setting a target for 45% of transactions to be circular by 2030. 

Selfridges introduced its Project Earth Initiative in 2020, committing to pioneer a new retail model that helps customers shop more responsibly. Project Earth is built around three pillars: materials, models, and mindsets, and underpins Selfridges’ strategy for becoming net zero by 2040. This is a challenge, as in a concession and brand partnership setting, Selfridges has very little control over the environmental footprint it is looking to reduce. In their first impact report, the difficulties in bringing about systems change were reported, with less than 1% of transactions with shoppers based on circular business models, in comparison to 1.1. million new products. Similarly, research conducted in 2021 suggested that 50% of Selfridges customers want to make more sustainable choices but don’t know how to, highlighting the challenges of customer uptake.

At the same time, the department store needs to be reinvented to stay relevant. Issues are plaguing long-standing businesses and were further exacerbated by the pandemic, with international tourist numbers dwindling and consumers switching to online sales. Selfridges has a reputation for bucking the trend, instead leading in experiential retail, but the department store needs to continue to innovate to maintain its competitive edge. 

Despite the low proportion of circular transactions, Selfridges saw the first two years of Project Earth as experimentation and piloting of ideas. Selfridges has made a commitment to a fundamental way it does business, using the platform for change. Circular business models including resale, rental, repair, and refill have now been rebranded under a catch-all term of ReSelfridges. The aim is to increase customer awareness and educational journeys so that customers are guided to more informed decisions. The first steps to encouraging increased uptake are to expand repair services outside London and make it easier to book online, rental will expand into new categories including kids' wear, accessories, fine jewellery and menswear and refill will be available more prominently. An ambitious target has been set of 45% of transactions to be from ReSelfridges by 2030.

Selfridges stands out against competitors in this commitment, with a great foundation to take advantage of circular opportunities as consumer behaviour continues to shift. Similarly, Selfridges has recognised how circularity can open a new customer base, one that is more price-conscious and youth-focused. 

While only representing 1% of transactions, the avoidance of new resource use should still be celebrated. Last year, sales of secondhand items increased by 240% to 17771 pieces, they facilitated 28,000 repairs, a third of which were pairs of trainers. It also rented more than 2000 items and sold more than 8000 refills. This gives an indication of just how large an impact could be generated by reaching 45% of transactions. There is still a long way to go, but Selfridges should be recognised for setting a deadline to generate a substantial proportion of sales through circularity, something that is lacking from brands that are increasingly experimenting in this space. 

Image by Ehimetalor Akhere Unuabona from Unsplash