The makeup of our closets is shifting in response to changing financial priorities, growing environmental awareness, and shifting social values, prompting consumers to rethink how they acquire, wear, and circulate clothing.

With 70% of shoppers open to alternative shopping options such as resale and rental, it’s clear that consumer values are in transition. The traditional fashion model defined by fast, disposable purchases is gradually being replaced by a more circular approach, where resale and rental are no longer fringe behaviors but integral parts of the modern shopping experience.

Views on Ownership are Changing

At the center of this transformation is a shift in how consumers view ownership. Millennials and Gen Z, in particular, are increasingly open to temporary access models that offer cost savings, sustainability benefits, and greater freedom to explore personal style. One of the key drivers behind this shift is the desire for high-quality items at more accessible price points. Environmental considerations also play a significant role: according to a 2023 Mintel report, 75% of consumers strive to act sustainably, with 33% citing the ability to repurpose or extend the life of a product as a key factor in their purchase decisions. This changing mindset is a major force behind the continued expansion of the secondhand market, which ThredUp projects will reach $367 billion globally by 2028, growing three times faster than the overall global apparel market.

The appeal of circular shopping models goes beyond ownership. Buying and renting secondhand is now seen as smart, expressive, and modern. According to Mintel, the desire for unique items is one of the top drivers of circular fashion adoption, as consumers seek pieces that reflect their individuality and ethics. At the same time, the wastefulness of single-use fashion is falling out of favor. As Business of Fashion notes, the once-aspirational trend of showcasing a new outfit daily on social media is beginning to feel outdated. In an era where platforms like Instagram are de-emphasizing likes and consumers are becoming more conscious of the environmental impact of their wardrobes, the culture of constant newness is losing its relevance.

This cultural shift is already reshaping the retail landscape. Legacy fast fashion brands like H&M and Forever 21 are facing mounting challenges. H&M recently reported sluggish sales, up just 1% from the previous quarter and below expectations, while Forever 21, after filing for bankruptcy, is closing dozens of stores. In contrast, businesses rooted in circularity – whether through resale, rental, or recommerce – are gaining traction, driven by consumer demand for more sustainable, flexible, and value-driven fashion experiences.

Our Closets are Changing

In the years ahead, our closets will increasingly mirror shifting consumer values. Rather than being dominated by newly purchased, single-use items, wardrobes will become more diverse, comprising pieces acquired through a mix of alternative shopping methods. A growing portion will consist of secondhand garments, sourced via peer-to-peer platforms or brand-led resale programs. ThredUp reports that by 2032, 18% of our wardrobes will be secondhand, up 9% from 10 years prior. Rental will also play a larger role, offering consumers flexibility, affordability, and the ability to refresh their style without the long-term commitment or the environmental impact. ThredUp predicts this category to make up 1% of our wardrobes by 2032. Traditional retail will still have a place, but purchases will increasingly be made with an “exit strategy” in mind: Will the item retain resale value, or could it enter a rental cycle in the future?

Read more about secondhand in Consumer Shifts Disrupting the Fashion Industry

While resale has firmly established itself, rental is quickly emerging as a vital model, particularly for smaller retailers navigating a competitive, cost-intensive retail landscape. In many ways, rental offers what resale does not: recurring revenue, stronger customer retention, and greater control over inventory lifespan. Nuuly, the rental division of Urban Outfitters, is a compelling example. Now in its fifth year, Nuuly reported over 50% year-over-year sales growth in the first quarter of 2025, following full-year growth of 172% in 2023 and 96% in 2022. Its active subscriber base reached more than 224,000, up 45% from the previous year and three times larger than in 2022. Significantly, nearly 40% of those subscribers have stayed with the service for more than two years which is a powerful indicator of the model’s stickiness.

Other emerging players tell a similar story. Pickle, a rental app targeting Gen Z, achieved a 55% month-over-month revenue increase last year and has maintained double-digit growth into 2025. Even more impressively, 90% of Pickle’s customers remain active a year after joining. For small retailers, this kind of retention is hard to match through traditional sales alone.

Beyond customer loyalty, rental helps retailers manage production and inventory more sustainably. Rather than relying on volume-based sales that often lead to unsold stock and steep markdowns, rental enables a single item to generate revenue multiple times. This approach not only extends the life of a garment but also helps offset the costs of production, a critical consideration for independent brands operating without the economies of scale enjoyed by large corporations. Instead of seeing unsold pieces liquidated through third parties at a fraction of their value, small retailers can now keep their inventory in circulation longer—and more profitably.

Importantly, rental also resonates with the values of today’s younger consumers, who are demanding more accountability from brands. For many small retailers, investing in fully sustainable materials and local production may be financially out of reach. But by offering rental services, either independently or through third-party platforms, these brands can meet their customers where they are, delivering affordability, ethics, and novelty in one package.

Industry Norms are Being Challenged

In its AW19 global campaign, Diesel leaned into the controversial practice of "wardrobing" when customers buy clothes, wear them once, and return them. Instead of penalizing or shaming this behavior, Diesel flipped the script, building an entire marketing push around their flexible return

policy. The campaign featured stylish consumers wearing garments with tags still attached, enjoying nights out and events without fear of judgment or commitment. Diesel even hosted Fashion Week parties where entry required visible price tags, transforming the act of temporary ownership into a playful, celebrated experience. This strategy not only sparked a conversation, it positioned Diesel as a brand unafraid to challenge industry norms and meet consumers where they are

At Looks for Lease, we believe in this mindset. We provide brands with the tools and software to make short-term ownership work for them by turning one-time wear into recurring revenue, keeping inventory in circulation longer, and aligning fashion with modern consumer values.

The future of fashion will not be defined by how much we own, but by how well we use what we have and how long we keep it in use. As resale and rental reshape our closets, small retailers have a unique opportunity to lead, not lag, in the next wave of circular fashion. Resale has laid the foundation, but rental offers a new frontier – one where loyalty, profitability, and responsibility can truly align.

Why Rental Is the Future for Smaller Retailers

Views on Ownership are Changing

Our Closets are Changing

Industry Norms are Being Challenged

The Rise of Experiential Fashion:

How Retailers Are Quietly Being Cut Out of Future Sales