H&M’s secondhand ambition comes to LA, but substituting new production with resale remains a high-stakes balancing act.
Swedish fashion giant H&M has stepped into the resale arena, opening a permanent “Pre Loved” shop-in-shop at its North Beverly Drive store in Los Angeles, in partnership with veteran vintage retailer Wasteland. This marks its second such U.S. location, following the Soho debut. The space features designer finds, leather essentials, and archive pieces curated by H&M’s Stockholm team and sourced by Wasteland. H&M’s head of circular business models, Sofia Mahlen, explained that Los Angeles “felt very much like a natural second city to launch Pre Loved in the U.S.” and cited the city’s “deep connection to vintage culture” as decisive.
The offering is priced above H&M’s core collection and runs on a consignment model: Wasteland owns inventory, and revenue is split on sold items. The initial launch brings around 300 curated pieces, with plans to replenish through the holiday season and categories such as denim, leather, premium accessories and — for the first time — shoes and boots.
According to Mahlen, “We are going to try shoes and boots for the first time. We think it could be cool in Los Angeles.” She added that placing secondhand alongside new product is intentional: “You buy something new, and you buy something vintage. If you can do that at the same time, then even better.”
This strategy signals H&M’s recognition that resale can serve as a tool for circularity. Its internal metrics show resale accounted for only 0.6 percent of its total 2024 turnover. H&M gauges success not only by revenue and profit — “We are for sure looking at selling in terms of revenue and profit,” Mahlen said — but also by assessing extended product lifetime, lower emissions per sale and new customer behaviours.
France pushes back against fast fashion
While H&M experiments with secondhand, another major narrative is unfolding in Europe. French authorities initiated suspension proceedings against Chinese-based Shein after discovering child-like sex dolls and weapons being listed on its platform. The finance ministry declared the government was “initiating proceedings to suspend Shein “for as long as necessary” for the platform to demonstrate that all of its content is finally in compliance with its laws and regulations. Shein responded by temporarily suspending its marketplace site in France, pledging to cooperate.
In June, the French Senate passed a revised law targeting “ultra-fast-fashion” platforms such as Shein and Temu, including measures that could impose a penalty of at least €10 per clothing item by 2030 or up to 50 percent of the product price for non-compliance with environmental standards.
This two-pronged challenge in France — both legislative and enforcement-based — raises broader questions for the global fast-fashion business model. If Europe begins to penalize the externalized costs of fast fashion, then brands like H&M may find the second-hand pivot not only strategically sensible but, increasingly, essential.
Can secondhand really replace fast fashion?
Replacing fast fashion with secondhand on the scale required would be ambitious. Fast fashion’s value lies in high turnover, easily accessible new styles, and affordable price points. H&M’s Pre Loved may also send confusing signals to consumers, with prices higher than its core collection. That current model functions more as a premium adjunct rather than a mass-market substitute.
Logistical challenges also remain: sourcing enough certified secondhand inventory at scale, managing authentication and curation, maintaining margins when prices rise, and shifting consumer expectations of “newness.” H&M’s own metrics underscore the gap: resale represents only a tiny fraction of total sales. Furthermore, as resale gains scale, the brand would need to rationalize its new production and supply chain, which is deeply embedded in its business model.
Yet, H&M’s decision to co-place new and vintage underlines a hybrid future. By giving customers the option to pick a new item and a pre-owned one in the same visit, the company acknowledges the existing consumer mindset and attempts to evolve it. Mahlen noted the core objective: prolonging the lifetime of products already made.
The French regulatory backdrop adds weight to the urgency. If ultra-fast-fashion models face tighter constraints or penalties in major markets, then the incentives for brands to diversify business models toward resale, rental, or extended product life, are growing. For H&M, the Pre Loved model may represent both an opportunity and a hedge: an opportunity to build a circular secondhand channel, and a hedge against regulatory and reputational exposure in a shifting global environment.
What remains open is whether such initiatives move from niche to mainstream. Will the resale channel ever generate the same volume, growth trajectory and margin as new product? Whether H&M — or any major brand — can migrate a large proportion of its business toward secondhand remains to be seen.
Related on Ethos:
