Subject. The study is devoted to the problems of introducing innovative closed-loop business models in the retail sector using the DIY sector as an example. Objectives. Assessment of the potential of introducing cyclical business models in the retail sector using the example of a Russian retailer of household goods and cottages. Methods. An integrated approach was used to assess the potential of implementing a sustainable business model of a closed-loop economy. The study combines qualitative information obtained from expert surveys with quantitative economic and environmental analysis, providing a comprehensive analysis based on primary data. Results. The data obtained indicate an important trade-off: while the rental model demonstrates good economic viability, the waste recycling model turns out to be significantly more environmentally efficient. This highlights the lack of a single, universally optimal solution. An innovative, strategically planned hybrid model has been developed that effectively combines the strengths of both approaches. This is a phased implementation in which economically viable methods are used to finance environmentally beneficial projects. Conclusions. The study offers new approaches for strategic decision-making in dynamic and limited operational environments, contributing to the sustainability of the trading sector.
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