H&M tests renting clothes to address green worries
STOCKHOLM: Hennes & Mauritz (H&M) AB is testing a clothing rental service as the fashion industry faces criticism for waste and pollution.
As of Friday, consumers can rent garments for 350 kronor ($37) a week in a refurbished flagship store on the Sergels Torg square in central Stockholm. H&M follows competitors Banana Republic and Urban Outfitters, which both launched similar services earlier this year to tap into a market that reached $1 billion in 2018. Websites such as Vinted and Hurr Collective are expanding in Europe, offering consumers a way to sell or rent used clothes.
H&M’S rental model is limited to a collection of 50 garments offered to members of the company’s loyalty programme. H&M will assess the trial in three months before expanding any further. The shop, which is testing new concepts, will also feature clothing repair services, a coffee shop and a beauty bar.
“We have a huge belief in rental, but we still want to test and learn quite a lot and do tweaks and changes,” Daniel Claesson, H&M’S head of business development, said in a presentation at the flagship.
Credit Suisse analyst Simon Irwin said he has doubts about the plan. “I’d be surprised if you can really make it work as a business model,” he said. “I can’t see that the kind of labour cost involved in a rental model at those price points really makes sense.”
The clothing industry is responsible for as much as
10% of global greenhouse gas emissions and consumes more energy than aviation and shipping combined, according to the UN.