How Luxury Resale & Rental Pop-Ups Are Redefining Sustainable Fashion in the Omnichannel Era

Document Type

Conference Proceeding

Publication Date

2025

Abstract

The luxury resale and rental pop-up market is experiencing rapid expansion, driven by shifting consumer preferences, sustainability consciousness, and digital innovation. By 2025, the luxury resale sector is projected to reach $38.32 billion, growing at a compound annual rate of 10.1%, with resale comprising a third of the overall luxury market (McKinsey, 2024). Luxury brands are increasingly integrating circular fashion strategies, such as curated resale collections, rental services, and trade-in programs, to maintain exclusivity while addressing environmental concerns (Bocken et al., 2014; Niinimäki, 2010). Pop-up stores, which accounted for 68% of luxury commerce activity in 2022 (magazine.gopopup.com), play a pivotal role in engaging digitally savvy consumers through immersive, experiential retail formats (Verhoef et al., 2017).

This study examines the rise of luxury resale and rental pop-up stores, focusing on their role in fostering consumer trust, maintaining brand equity, and advancing sustainability through an omnichannel approach. Grounded in access-based consumption theory (Bardhi & Eckhardt, 2012) and the Triple Bottom Line framework (Elkington, 1998), the research explores how luxury brands such as Gucci Vault, Burberry, and Selfridges’ "Resellfridges" are leveraging short-term retail activations to reinforce brand desirability and circular business models (Janssen et al., 2021). Furthermore, digital integration—through blockchain authentication, augmented reality (AR), and AI-driven personalization—has redefined resale and rental luxury, enhancing customer engagement and ensuring trust in second-hand goods (Kannan & Li, 2017; Verhoef et al., 2021).

Findings indicate that resale and rental pop-ups provide luxury consumers with a hedonic yet sustainable shopping experience, balancing exclusivity with accessibility. Trade-in programs, limited-edition vintage drops, and eco-conscious store designs—as seen in Dior’s reclaimed-wood pop-ups and Chanel’s eco-conscious boutique in Saint-Tropez—demonstrate how luxury brands are embedding sustainability into temporary retail spaces (Pal & Gander, 2022). This research contributes to the growing discourse on luxury circularity, omnichannel retailing, and experiential sustainability, offering strategic insights for brands seeking to merge prestige and purpose in the evolving luxury landscape.

Publication

Proceedings for the Academy of Business Research Spring 2025 Conference

Publisher

Academy of Business Research

Conference/Symposium

Academy of Business Research (ABR) Spring 2025 Conference

City/State

New Orleans, LA

Pages

121

Department

College of Business and Management

Comments

Won Best Paper Award at the conference.

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