This thesis examines how circular economy (CE) principles are applied in practice within a large, vertically integrated company. The study focuses on the Schwarz Gruppe, which includes the divisions Schwarz Produktion, Lidl, Kaufland, and PreZero. The scope of this study is focused on packaging processes and material loops, as this is where the Group’s CE initiatives are most visible. The aim was to better understand how CE strategies are implemented inside such an organization, what challenges emerge, and how different parts of the company collaborate to support sustainability goals. The study’s focus on packaging was chosen due to the Schwarz Gruppe’s vertical integration in packaging and recycling; other factors (e.g., food waste) are noted but not examined in depth.

A qualitative case study approach was used, relying on semi-structured interviews with employees from each division, as well as internal and external document analysis. Through thematic analysis, four main themes were identified: cross-divisional collaboration and closed-loop integration, innovation in circular practices, the role of organizational culture and awareness, and ongoing challenges and limitations.

The findings suggest that vertical integration offers a strong advantage for CE implementation. For example, the internal recycling of PET bottles shows how closed loops can function effectively when production, retail, and recycling are under one roof. Innovation was also found to play a central role, including new materials, AI-supported sorting technologies, and small-scale trials like refill stations. At the same time, a shared culture of sustainability and employee engagement contributed to the success of these efforts.

Overall, the study shows that with strong governance, internal alignment, and a culture that supports sustainability, even a large retail group can take meaningful steps towards circular economy. While not all companies have the same structural advantages, many of the strategies and lessons observed here can be relevant and informative for others working in the same direction.