Sustainable Growth and Circular Economy with Reference to Retail, Textile and Fashion Sector

Abstract

The growing environmental, social, and economic challenges posed by the fashion, textile, and retail industries underscore the urgency of embedding circular economy (CE) principles within global supply chains. This study examines the role of reuse, recycling, and innovation in promoting sustainable growth through waste reduction, natural resource conservation, and the enhancement of socio-economic value creation. Utilizing secondary data from a sample of 90 respondents across the fashion and technology industries, the analysis delineates demographic factors, supply chain expectations, and operational standards influencing CE adoption. The results of the regression show that supply chain integration, digitization, and efficiency all have a big positive effect on circularity. This means that digital tools and efficient logistics speed up reuse and refurbishment, which cuts down on scrap and saves money. The results show that fashion and textile companies are using more CE-driven models to stay competitive and be more environmentally responsible because they have higher return and scrap rates. The paper finds that circular practices are not only ancillary compliance measures; rather, they are strategic drivers for sustainable growth, harmonizing environmental stewardship with social and economic advancement. Practical suggestions include digital traceability, scaling up renovation, and working together to make policies. This research enhances CE scholarship by contextualizing sustainability within the practical dynamics of retail and fashion supply chains, providing valuable insights for both academic investigation and managerial application.