New research from Barclaycard Payments reveals retailers are introducing more sustainable ways to buy and sell products and services, amidst pressure from consumers to shop more consciously and reduce their discretionary spending as living costs increase.
Seven in ten businesses now offer more sustainable shopping options, giving rise to the ‘Recommerce Economy’ of recycling, renting, reusing and reselling. Over a third (36 per cent) have introduced more sustainable ways to shop in the last 12 months, and 89 per cent plan to expand their options in response to the surging demand for more affordable and environmental-friendly shopping alternatives.
Around 32 percent or a third of retailers agree that the rapid expansion of recommerce has been driven by the growth in environmental awareness and the impact of the rising cost of living on consumer spending behaviour. 37 per cent say they have introduced more sustainable ways to shop to provide customers with more affordable options and 44 per cent are doing so to reduce their own impact on the environment.
As previously indicated, 40 per cent of UK retailers surveyed currently use a rental model, 61 per cent of which debuted in the previous year, and another 23 per cent are considering doing so. Amongst those which have introduced a rental model in the last 12 months, 90 per cent ‘have benefited from an increase in revenue’ while 89 per cent have also seen their rental customer base growing, at an average increase of 31 per cent.
Some 39 per cent of retailers also now have their own reselling option in place, enabling customers to buy and sell second-hand items, with 23 per cent having introduced them in the past year, while a further 26 per cent are considering setting one up in the coming months.
Designer clothing (24 per cent) and wedding dresses (18 per cent) are one of the most common items available to rent.
Meanwhile, Barclaycard also said that the most common products available to buy pre-owned from retailers are clothing in top spot (29 per cent).
As per Managing Director at Barclaycard Payments, Linda Weston, “The Recommerce economy continues to grow as retailers make sustainable ways to shop available to customers. Whether launching rental models to drive new streams of income, offering reselling services in-store, or by increasing second-hand or pre-loved product lines, our data shows how offering alternatives to buying new can increase a business’ customer base and revenue.”
In tuning with that, Harry Wallop , Retail Expert and Commentator added, “As belts get increasingly tighter, it’s the businesses who demonstrate that they have the customers’ best interests at heart that will go the distance. This means offering viable alternatives to buying new. Recycling, renting, reusing and reselling options give consumers the chance to get hold of what they need, while being kinder on the pocket – essential as cost of living continues to rise.
“Those businesses that flex and create new alternatives to traditional shopping methods can in turn build wider, more diverse customer bases while driving future loyalty.”
