Some 82% of retailers have seen an increase in revenue since implementing rental services in their business models.
According to new research by Barclaycard Payments and Development Economics, the resale and rental ‘recommerce’ market is growing in the UK and is worth £6.99 billion.
As reported by Fashion United, the research revealed that 40% of costumers shop second-hand or rent items over buying brand new “more often” than they did a year ago.
Currently, 46% of UK retailers have a resale option, with 27% considering implementing one. Entertainment and electronics are the largest in the space, making up 47%, with clothing and accessory rental following closely behind at 43%.
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In a bid to keep up with trends, 82% of retailers that have implemented rental services have seen an increase in revenue growth. A further 89% have seen their customer base grow and 87% have seen profits increase.
Out of the rental services that offer those services, 33% of retailers say their revenue now comes from rental models.
Barclaycard Payments managing director Linda Weston said: “Sustainability and the rising cost of living continue to impact merchant decision-making when it comes to the recommerce economy.
“Activity within this sector contributes significantly to the UK Economy and our research highlights that merchants are increasingly taking interest in facilitating more sustainable and cost-effective shopping methods for consumers, actively investing in new technology as well as offering recycling or reselling platforms and services.
“Our data demonstrates just how beneficial this can prove to revenue and income streams amidst a challenging economic climate,” Weston continued.
By Rotation founder Eshita Kabra-Davies told Sustainability Beat she believes circular solutions such as rental and resale will be a “commonplace for brands and retailers by 2030.”
Retail expert and commentator Harry Wallop also predicts the space “is only likely to get bigger” as more “high street names embrace the idea” of rental services.