Sustainability has become a pressing concern for retailers, with pressures from a variety of stakeholders, including customers, board members, and regulators, to practise environmental responsibility at every stage of a product’s journey. As a result, re-commerce, rental services, repairs, outlets, sustainable return management, and new legal aspects are changing how retailers operate.
In this article, we explore the sustainability trends in retail and discuss potential solutions businesses can implement to tackle this complex issue.
Re-commerce platforms: A shift in consumer behaviour
Re-commerce involves buying and selling pre-owned, refurbished, or recycled goods, typically through online platforms. This promotes sustainability and extends product life cycles. Businesses can capitalise on the growing demand for sustainable and affordable options by incorporating re-commerce into their sales channels.
By doing this, brands can expand their audience reach. A lower entry price point can allow more potential buyers to try their brand, particularly in the luxury market.
Rental and styling services emerge
Brands have begun tapping into the rental trend to stay relevant and appeal to Gen-Z and millennials alike. However, question marks remain on how successful the rental market can be. By shifting from selling to rental, businesses are no longer transferring the sense of ownership to the customer, which fashion rental company Rent the Runway found was accelerating the depreciation of its items.
Another issue in rental is shipping costs can be approximately twice as high as traditional e-commerce, as the item needs to be shipped to the customer and then returned. Nevertheless, the growing trend of eco-friendly consumption and the flexibility and variety that rental services provide are clearly resonating with the modern consumer. This suggests that the future of rental fashion is promising.
Efficient returns for sustainability
Returnless refunds are on the rise, allowing customers to get a refund without needing to physically return the product. There are risks attached to this approach, however. Some retailers have started to penalise those who return large amounts of items. While this may help reduce waste, it could push away customers who value simple returns.
One way retailers can avoid the pitfalls of sustainable returns while maintaining customer satisfaction is to leverage technology to better understand the reasons why a customer returns a product. Zara, for example, uses data analytics to analyse return patterns, enabling better decisions to enhance product design and sizing accuracy. This proactive approach not only reduces future returns but also strengthens customer trust and loyalty.
Legal aspects to keep an eye on
Along with changing consumer attitudes, there’s also upcoming legislation that retailers need to be aware of:
- Digital product passports enable transparency – Digital product passports (DPPs)are a key component of the proposed Ecodesign for Sustainable Products Regulation under the Circular Economy Action Plan (CEAP). Implementing DPPs raises questions for retailers, making integration crucial for compliance reporting. Tools like blockchain and cloud platforms can facilitate secure data transfer and enhance visibility of the fashion lifecycle. If updating or replacing a solution, engaging and aligning your team is key to delivering the benefits. Working with a digital consultancy can provide best practices and proven methodologies, ensuring your change management program is solid
- ESG reporting beyond compliance – ESG reporting, guided by the CSRD (Corporate Sustainability Reporting Directive) and ESRS (European Sustainability Reporting Standards) in the EU, goes beyond compliance. It strategically integrates environmental, social, and governance factors into business operations, aligning sustainability goals with core objectives for competitive advantage. Embracing ESG reporting helps organisations manage market complexities, drive societal impact, and ensure resilience
- European Accessibility Act: Ensuring inclusion – The European Accessibility Act (EAA) mandates accessibility for everyday products and services, benefitting an estimated 87 million Europeans with disabilities. Key provisions includesmartphones, banking services, and e-commerce platforms. As of June 28, 2025, customers can seek recourse if products or services fail to meet accessibility standards, reinforcing the act’s commitment to inclusion
While non-EU member states are not currently affected by these regulations, UK-based companies that operate in an EU member state will need to comply. With this in mind, it makes sense for UK businesses to make strides in these legal areas to become early adopters, which can differentiate them in a crowded market and highlight their commitment to sustainability and ethical practices.
Find out more about how retailers are focusing on sustainability
Read more about how retailers are embracing sustainability in our comprehensive guide. We cover these topics in greater depth and provide real-life examples from organisations making significant progress in this area. Download our guide to sustainability today by clicking here.
