Global fashion retailers are set to gather in Barcelona for the World Retail Congress, one of the industry’s biggest annual conferences.

Executives from major retail companies will discuss how to respond to mounting pressure from regulators and consumers to move towards more sustainable models, while also trying to reverse declining sales in Europe.

The challenges facing their businesses will be discussed, including tougher European regulations on textile waste, as well as the impact of inflation on consumer spending.

There is growing pressure from regulators to change the fast fashion model, which relies on high volumes and affordable prices. Consumers in the European Union discard about 5.8 million tonnes of textiles annually, according to the European Environment Agency. The current model is unsustainable given the threats of climate change and resource scarcity.

In response, many retailers are seeking to adopt circular business models, in which materials are reused and recycled rather than using up finite resources to make new products. This shift will require creating multiple revenue streams from existing products. There is a business case for making the fashion industry more circular, but it will require a major shift in the industry's business model.

Retailers are working with local authorities ahead of a new EU law that will require member states to separately collect textile waste by January 1, 2025.