Retail revivalist Circonomy has officially launched its first dedicated store in Melbourne, expanding the footprint of a business aiming to reshape Australia’s relationship with ‘unwanted’ goods.
Circonomy acquires surplus and cosmetically damaged goods from national retail giants like Officeworks and Catch, saving those products from landfills.
The enterprise also refurbishes unwanted technology and office supplies, giving a second life to building fit-outs and furniture which outlived its original purpose.
Like ALDI, Circonomy’s range changes on a week-by-week basis.
But unlike the supermarket chain, Circonomy says its offerings are determined by the “surprise chain”, and whatever unique products may become available from its corporate partners.
It officially opened its new retail site in Reservoir last week, giving consumers the chance to snap up cut-price homewares, clothing, and furniture ahead of the holiday shopping rush.
Circonomy CEO Ryan Swenson said the store’s “shop second, first” model has already proven a hit with shoppers during a cost of living crunch.
“With new arrivals daily, we’re seeing people come back day after day to see what else is in store,” Swenson told SmartCompany.
While savvy shoppers are looking for holiday gifts, Swenson said the Circonomy model is also an antidote to over-consumption.
Around one in five items purchased through the Black Friday and Cyber Monday sales season are likely to be returned, Swenson said.
Many of those purchases are likely to become lightly damaged in the returns process, with the original retailer deeming them unsellable.
Circonomy acquires those products, giving them a second chance to sell.
“Our model provides Australians access to purposeful living through considered choices, at really affordable prices year-round, regardless of the sales cycle such as Black Friday and Cyber Monday,” said Swenson.
“Sustainability and affordability can go hand in hand,” he added.
The Reservoir site is Circonomy’s second retail store, after its long-running Brisbane operation.
It marks the latest development in Circonomy’s national expansion plan, which saw the business open a collection and refurbishment centre in Richmond, Melbourne, in February.
Next on Circonomy’s 2024 agenda is work to establish a Sydney site similar to the Reservoir location, giving it an even greater East Coast footprint.
The venture is also working on a new technical platform which allows it to better assess where surplus goods can be utilised, allowing even more products to avoid landfill.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
