Recommerce economy now worth £ 7 billion in the UK

Resale and rental is booming in the UK with ‘recommerce’ now accounting for 1.6 per cent (almost £ 7 billion) of total retail sales.

A recent analysis from Barclaycard Payments and Development Economics shows that the UK economy has benefited greatly from the growing trend of more mindful purchasing, bringing in £ 6.99 billion just in the previous 12 months. According to recommerce market analysis, this activity supports 49,000 jobs in the UK retail industry.

Recommerce, and rental in particular, has improved the fortunes of those retailers who participate in it; eight out of ten (82 per cent) of those who do so have seen an increase in revenue; nine out of ten (90 per cent) have seen an increase in their customer base; and a similar proportion (87 per cent) has seen an increase in profits. Those who provide these services claim that, on average, 33 per cent of their revenue now comes from rental models.

Fashion has been at the forefront of the recommerce revolution and is the second largest sector in the space with a 43 per cent share.

Businesses are increasingly bringing resale and rental operations in-house in the retail industry, and the fashion industry has taken the lead in this development with forays into the rental market by John Lewis, Marks & Spencer, Selfridges, Flannels, Mango, ASOS, and H&M, among others.