strategic change from a linear shopping mall to a circular shopping complex

Can shopping centers become centers for a circular society? And if so, how can they evolve from linear centers of consumption into vibrant, circular hubs that promote economic resilience and cultural relevance? The white paper “Don’t Call It Circular Society Mall,” being launched today at Berlin Fashion Week, explores these questions. It was developed by the 202030 Think & Do Tank together with the Berlin consulting firm Studio MM04. The 202030 Think & Do Tank was launched on July 1, 2025 as an official partner event of Berlin Fashion Week.

‘Why shopping centers of all places?’ one might ask. The starting point for the white paper was a survey of more than 70 shopping centers in Berlin. This dealt with their structural and operational problems and led to a consideration of the special opportunities that shopping centers offer.

“Compared to a shopping district or a shopping street [Einkaufszentren] actually one step ahead on the path to a circular economy. Shopping centers already have an overarching management structure that connects a variety of stakeholders. This management structure could be used to organize and operate a very local circular economy system,” says the introduction.

Malls are traditionally social and community-oriented

In fact, the very first modern shopping mall, Southdale Center in Edina, USA, was designed and opened in 1956 as a community gathering place. Here people could shop and maintain social contacts all year round. It was intended as an alternative to the car-centric life in the American suburbs. Seventy years later, according to the white paper, malls are “convenient places for everyday consumption and beyond. They also serve for casual encounters and various forms of entertainment for all generations.”

Given competition from global digital platforms like Shein and Temu, one might question the relevance of malls today. AI-supported social commerce such as Instagram and TikTok as well as second-hand platforms such as Ebay, Vinted or Vestiaire Collective are also strong competitors. However, the white paper argues that shopping centers are particularly relevant today precisely because of all these digital offerings:

“Digital natives are often increasingly seeking physical spaces that are accessible, beautiful and communal. They seek places where they can meet in real life, network and participate in social and leisure activities. What was once a casual stroll or window shopping is now better understood as curated serendipity. Environments are intentionally designed to create meaningful, serendipitous encounters and experiences that are worth leaving the screen for.”

Shopping centers as circular “engines of customer loyalty”

Existing shopping centers are facing increasing economic and regulatory pressure. Traditional shopping malls are often viewed as relics of linear consumption. However, their existing management structures, central locations and logistical capabilities position them uniquely to become platform providers for the circular economy. The white paper defines circularity not just as an ecological extra, but as a “driver of customer loyalty”. This is intended to stabilize sales and increase the long-term value of assets.

For fashion and lifestyle industry professionals, the most important insight is the potential of circular services. This includes repair, resale and rental. These can increase customer frequency, visit frequency and consumer trust. By shifting from a transaction-based to a participatory model, malls can create those “meaningful, serendipitous encounters” that digital platforms cannot replicate. This transformation is critical to remaining relevant to Gen Z consumers. Although they are digital natives, they still value physical, personal experiences.

The regulatory landscape: ESPR and EPR

The white paper highlights a changing legal framework that dictates change. The most important drivers include the EU Ecodesign Regulation for Sustainable Products (ESPR) and the Extended Producer Responsibility (EPR). The ESPR requires products to be durable and repairable. The EPR makes manufacturers financially responsible for the end of a product’s life cycle. These regulations require physical spaces for reverse logistics, sorting and classification. Shopping centers are perfect locations for this infrastructure.

The white paper provides case studies to prove this is possible. One of the pioneers of the circular economy is Green Pea in Turin, the world’s first “Green Retail Park”. This uses a membership model to build a community. There’s also ReTuna in Sweden, a shopping center entirely dedicated to recycled and upcycled goods. Another example is the Nochmall second-hand shopping center in Berlin. These cases show that circular economy can be scaled into a profitable mainstream retail environment, although high fixed costs and consumer education remain challenges.

Modular transformation: solution instead of rapid change

Rather than proposing a sudden reinvention, the paper presents a “Solution Pathway Framework.” This modular, step-by-step approach allows shopping center operators to test specific circular modules. These include repair centers or resale pop-ups. This way you can test them before full implementation. This “pathway” approach mitigates risk by allowing for experimentation, failure, and adjustment in real retail labs.

The long-term vision is a “Circular Living Complex”. This is a mixed-use ecosystem where living, working and consuming are connected through circular principles. In this integrated model, a shopping center acts as a local “operating system.” It orchestrates value creation across products and communities. It uses a digital backbone, including digital product passports (DPP). This tracks resources and rewards sustainable consumer behavior.

Redefining KPIs: beyond sales per square meter

In order to be successful, industry players must further develop their success metrics, the white paper warns. Traditional KPIs in retail need to be supplemented with new indicators. These include visits per customer, resource repatriation and community participation. These new KPIs only have value if they are translated into economic relevance for the owners. This can be done through innovative leasing models or risk reduction through compliance with regulations.

A successful “Circular Society Mall” must also appeal to different ways of thinking. The white paper divides potential target groups into personas. These include “Anna”, the quality-conscious urban pragmatist; “Jonas,” the early adopter who prefers access to ownership; the digital native “Gaya” and the everyday traditionalist “Peter”. Understanding these different motivations allows shopping centers to design services. Offerings range from high-end fashion rentals to accessible community repair workshops.

New services, infrastructure and logistics: the backbone of circularity

Future offerings could include more circular consumer goods and brands under one roof. Second-hand and resale services, repair and refurbishment, upcycling, fashion libraries, learning laboratories, maker spaces and exhibitions are also conceivable. In the area of ​​community building, services such as co-working, childcare, healthcare and sports could be offered. Cooperation models are also possible that connect the spaces and offerings of the shopping center with surrounding schools, universities, cultural institutions or local markets.

Operational success depends on the integration of reverse logistics into the core functions of a shopping center. This includes standardizing return processes and evaluating products for reusability. The white paper suggests that property owners should consider this as a risk mitigation strategy. This protects the value of the property from vacancies and ensures that the energy efficiency of the building meets upcoming EU standards.

Conclusion: Call for pre-competitive cooperation

The transition to a Circular Society Mall cannot be achieved in isolation. It requires “pre-competitive collaboration” between property owners, brands, municipalities and local communities. By sharing the risks of innovation and pursuing a common vision, the fashion industry can transform today’s regulatory and economic pressures into long-term competitive advantage. This creates spaces that are both economically viable and socially significant.

Last but not least, a fresh, new concept also requires a fresh, new name. Therefore, the term “Circular Society Mall” in the white paper only serves as a descriptive placeholder. In particular, the term “mall” is currently still associated with a traditional idea of ​​consumption and “a model designed for throughput rather than long-term value.” But who knows, maybe this could change soon.