This workshop aims to highlight the role of sustainable innovation in a fashion retail context through the lens of dynamic capabilities (DCs). The presence of DCs within firms is argued to be instrumental to firms’ abilities to implement sustainable and circular fashion practices, since it is concerned with how businesses respond to rapidly changing environments through sensing and shaping opportunities and threats, seizing opportunities, and reconfiguring their resource bases. Spanish fashion firms possess a profound strategic agility, highly entrepreneurial management teams who create added value through the harnessing of new technologies and retail formats and product innovations to educate and engage consumers on sustainability issues. This workshop will present some of these firms as case studies.