US department store group Nordstrom is to sell used clothes in its New York flagship store and online to tap into consumer demand for second-hand goods as shopping habits change.

Nordstrom will dedicate space formerly occupied by Burberry to the second-hand lines, The Washington Post reported.

Shoppers will also be able to exchange old clothes, handbags and shoes for gift cards. The goods will be cleaned and repaired before being resold. Nordstrom will also accept items by mail.

Nordstrom’s initiative follows similar ventures by retailers such as Macy’s and JCPenney. Second-hand purchases and rental models have become increasingly popular among shoppers, partly driven by sustainability concerns and a desire to reduce waste and the impact of fashion consumption on the environment.

There have been similar initiatives in the UK. At the end of last year, Selfridges teamed up with a clothing resale website to open a permanent second-hand space at its Oxford Street flagship.

The boutique, run by Vestiaire Collective, incorporates a dedicated point where customers can deposit items through the concierge service and an app.

Also last year, luxury fashion platform Farfetch struck a partnership with resale and donation platform Thrift+ to enable customers to clear out their wardrobes and donate to good causes.