Young fashion retailer Little Mistress is to launch a rental service by the end of the year as it seeks to benefit from the growing sharing economy.

Little Mistress is the latest retailer to offer a rental service. Last month Ikea revealed it was to trial furniture rental in Switzerland, and in clothing US retailer Rent the Runway is growing rapidly; it now has more than 10 million members and last year turned over $100m.

Little Mistress founder and chief executive Mark Ashton told Retail Week that its scheme will feature “red-carpet-style garments”, with price tags of £300-plus – higher than its usual retail price. The rental fee will be £50.

Read: Where do retailers stand in the rental revolution? 

Find out more about the growth of the rental sector and how retailers can benefit.

Ashton said he was unconcerned about cannibalising retail sales. “I do believe this customer will hire up to six to eight times per year where she would have only bought one to two dresses over the same period. In time it will prove profitable in many areas and will breed returning customers,” he said.

Clothes rental is predicted to be a growth area as consumers move towards a sharing economy and concerns about sustainability in the fashion industry intensify.

Allied Market Research predicts that the global online clothing rental market is set to jump from $1bn in 2017 to $1.9bn by 2023.

Where do retailers stand in the rental revolution?