Abstract
The percentage of products being returned in multichannel retail are high and further increasing, yet many retailers and manufacturers are unaware of the importance and scale of this issue. They consider dealing with returns as a cost of doing business and are oblivious of the potential for conflicts between their corporate social responsibility commitments and their returns practices. This article investigates how far sustainable practices and circular economy concepts have been implemented in retail returns systems; it identifies vulnerabilities, barriers, and challenges to the implementation of sustainable, circular practices and suggests ways to overcome them, as sustainability, loss prevention, and profit optimisation can go hand in hand with the right approach to the organisation of the reverse supply chain. Implications of this research on strategic management are outlined. The research was conducted using in‐depth interviews and observations with four major retailers in the United Kingdom, 17 structured interviews, 100 retailer website reviews, and three retail community workshops, all with British and other European retailers.