H&M launches clothing rental services, joins the likes of Banana Republic and Urban Outfitters
“We have analyzed the rental business model for quite some time, and we are very happy to offer for the first time the possibility of renting some pieces,” said head of sustainability at H&M, Pascal Brun.
H&M, one of the biggest retailers in the world (by revenue), are trialing a clothing rental service in their Stockholm flagship store. The rental service was valued at $1 billion in 2018.
The company launched this service for members who are part of its loyalty program. Members will be able to rent clothes from a curated edit of 50 garments. After three months, H&M will assess the success of the trail before expanding any further.
Commenting on the move, Daniel Claesson, head of business development for H&M said:
“We have a huge belief in rental, but we still want to test and learn quite a lot and do tweaks and changes.”
H&M launches sale of second-hand clothing through its online channel
Although this is the first time the Swedish Giant launches a garment rental service, last April, the group took steps in other similar formulas, such as second hand clothing on its online channel.
H&M closed the first nine months of the year with a revenue of 171 billion Swedish kronor (15.8 billion euros or 17.4 billion US dollars), an increase of 11%. The group’s profit, meanwhile, stood at 9.2 billion crowns (834 million euros or 923 million US dollars), 1.3% more.
By 2040, the company intends to reach the point that its greenhouse gas emission be on the negative side, meaning that it would offset more than it produces.