A recent report sheds light on the thriving re-commerce sector in the UK, revealing its substantial worth of nearly £7 billion. Conducted by Barclaycard Payments in collaboration with economic analysts at Development Economics, this study underscores the rising trend of purchasing, selling, or renting pre-owned items. Consumers are increasingly embracing secondhand goods and rentals, marking a significant shift from just a year ago.
The data is derived from surveys conducted with 400 retailers and a comprehensive analysis of demographic, retail, and economic data provided by the Office for National Statistics.
In the past year, conscious consumerism in the burgeoning re-commerce market has made a substantial contribution of £6.99 billion to the UK economy. This constitutes 1.6% of the total UK retail market and has a positive impact on over 49,000 jobs within the British retail sector. Impressively, 76% of surveyed merchants now offer some form of «sustainable shopping format.»
Of the total spend of £6.9 billion, £5.9 billion was directed towards secondhand purchases, while £1.07 billion was spent on rentals. Notably, 82% of retailers offering rental services have seen an increase in revenue since introducing these offerings. Additionally, 89% have witnessed an expansion of their customer base, and 87% have reported rising profits. On average, rental models now contribute 33% of their revenue.
The changing consumer behavior prompted nearly a quarter of retailers to adopt new technology to support sustainable shopping methods.
Furthermore, the report highlights that 40% of consumers shopping for secondhand or rental items do so more frequently than a year ago, while 57% report that their re-commerce shopping habits have remained consistent. This collective shift underscores the permanent transformation in consumer shopping preferences.
Significantly, 29% of retailers offering sustainable services now provide a platform for customers to resell previously purchased items, which the business then markets as pre-owned products. In addition, 31% offer in-store product recycling, and a similar percentage provides repair services to prolong the lifespan of products.
Moreover, 18% of retailers offering sustainable services have introduced «swapping events» where customers can exchange items, and 22% offer reselling platforms, allowing customers to sell items, even if they weren’t originally purchased from the company.
The report reveals that 46% of the surveyed retailers already have a resale option in place, and an additional 27% are considering implementing one. The most popular categories for resale are entertainment and electronics, with clothing and accessories closely following at 43%.
Interestingly, the report emphasizes that, amid the current cost-of-living crisis, saving money is a significant motivating factor for both merchants and consumers, overshadowing sustainability concerns, which were the primary focus of re-commerce marketing a few years ago. Remarkably, 46% of retailers introduced secondhand or rental options in response to cost-of-living issues.
Nonetheless, sustainability remains a priority, with 46% of merchants committed to reducing their business’s environmental impact.
Linda Weston, Managing Director at Barclaycard Payments, points out that sustainability and the rising cost of living continue to influence merchant decisions within the re-commerce sector. She emphasizes that the activity in this sector significantly contributes to the UK economy. Retailers are actively exploring sustainable and cost-effective shopping methods, investing in technology, and offering recycling and reselling platforms to enhance revenue and income streams in a challenging economic climate.