Fashion rental has become one of the most dynamic trends in the industry, driven by consumer demand for sustainability, flexibility, and value. The UK fashion rental market is experiencing unprecedented growth, with Hirestreet leading the charge through significant investment backing and innovative platform developments. The Newcastle-based company has emerged as a transformative force in sustainable fashion consumption, recently securing investment from DMG Ventures and expanding its strategic partnerships with major retailers.
How Hirestreet Works
Hirestreet operates as a comprehensive fashion rental platform providing consumers access to thousands of outfits from leading retailers. The platform’s streamlined process allows customers to browse, select, and order items from an extensive catalog with just a few clicks.
The rental service offers flexible subscription options, with customers choosing from tiered models depending on their rental frequency. The platform now offers two primary rental options: customers can rent two items for 30 days at £30, or opt for a five-item bundle for a 30-day period at £65, marking the company’s “first steps towards a subscription style” business model.
Isabella West, CEO of Hirestreet, explained the evolution of customer behavior: “Browsing behaviour and checkout behaviour have changed; customers are now looking to hire outfits for more of life’s moments, and the result is more items in their basket and often a higher frequency of rental. We needed to adjust our proposition to meet that demand,” said West.
Ownership Structure and Leadership
Hirestreet Limited, incorporated in November 2017, remains a privately held company with Isabella West maintaining significant control as founder and CEO. West holds more than 25% but not more than 50% of both ownership shares and voting rights.
DMG Ventures’ recent investment is a notable development for Hirestreet’s ownership structure. Isabella launched Hirestreet in 2018 when she was 25 to help consumers find an alternative to buying fast fashion. She initially started the business renting out just a few of her own and her friends’ dresses, and quickly realised there was a huge market opportunity.
Benefits for Consumers
Hirestreet meets rising consumer expectations for sustainable and affordable fashion alternatives. The platform allows customers to enjoy high-end fashion without the environmental impact of fast fashion consumption. With rental prices typically starting from around £14 for four-day periods, as seen with some brand partnerships, shoppers can reduce their wardrobe costs while enjoying variety.
The subscription model delivers substantial value, with five-item monthly subscriptions on Hirestreet currently listed at £75 per month, and special introductory offers sometimes available. Isabella West, CEO of Hirestreet, has stated: “In the UK in 2023, the average cost of attending a friend’s wedding is over £500. That’s why ‘wedding guest’ is our most popular occasion category at this time of the year.”
The platform’s AI-driven approach enhances consumer experience by forecasting demand and helping ensure the right styles and brands are available at the right time for customers. This use of predictive analytics and data helps optimize product selection and boost customer satisfaction.
Applications for Sellers
Hirestreet presents strong opportunities for retail partners grappling with conventional challenges. The platform helps retailers address excess inventory issues, with studies showing brands globally are still faced with surplus stock rates of over 30%.
DMG Ventures points out: “Rental is a lucrative avenue for retailers to deliver more margin per item in the face of these financial difficulties. Unlike the second-hand market, where retailers typically miss out on any additional revenue from their items, they actually generate additional income each time an item is rented through Hirestreet.”
Major brands, including ASOS, Marks & Spencer, Whistles, and Nobody’s Child, have adopted the platform. The expanded ASOS partnership now gives customers access to over 20,000 items across more than 50 brands.
Future Outlook
Hirestreet’s outlook remains strong, with the company well-positioned in the UK’s fast-growing rental sector. The recent DMG Ventures investment enables the platform to access a wider international audience through the DMG media network. Industry analysts at Future Market Insights forecast continued expansion in the global fashion rental and resale market by 2030, underscoring the sector’s substantial long-term potential. With over 100,000 customers already embracing the platform and total items dispatched climbing 200% year-on-year, Hirestreet is well-positioned to transform fashion consumption in the UK.
