Secondhand Stores Get New Life
Secondhand stores have increased in popularity recently. Both the drive to more sustainable, environmentally friendly shopping as well as the increase in inflation rates have launched this consumer trend. Retail prices continue to rise as U.S. annual inflation rates go against the consumer. December’s inflation rate of 3.4% was higher than the November rate of 3.1%. Although December 2023 experienced a lower rate compared to last year’s rate of 6.5% in December 2022, it was still above analyst expectations, according to CNN Business. High inflation rates result in consumer spending pressure as consumers feel the heat and cut back on discretionary spending. These moves have propelled the interest in secondhand shopping.
Benefits to consumer pocketbooks
As consumer purchasing power is weaker, many people have moved to shopping at secondhand stores to find high quality items at lower price points. Modern Retail revealed that the end of summer back to school shopping season saw consumers seeking secondhand options for clothing and accessories due to both the effects of inflationary pressures and the desire for sustainable fashion. As cost savings is the main reason people flock to secondhand stores or websites, most shoppers enjoy hunting for bargains that are lighter on their wallets.
Variety of brick and mortar as well as online options
The secondhand marketplace has expanded significantly, especially after the supply chain shortages during the Covid pandemic increased demand for many items. From thrift stores to charity shops to high end consignment boutiques, today’s consumer has many options for purchasing pre-owned goods that cost less and are more eco-friendly. Additionally, a lot of secondhand shoppers boast of finding “new with tags” treasures like backpacks, shoes, and garments. At times the fad of thrifting results in competition over certain items from those who have deeper pockets but look for bargain gems and others who struggle financially but rely on secondhand merchandise.
In terms of brick and mortar secondhand stores, numerous people visit Goodwill which offers bargain bins or discounts based on color-coded tags, Housing Works which aims to fight HIV/AIDS, and the Salvation Army which supports a variety of social programs for people of all ages. Additionally, countless charitable organizations like hospital groups, religious institutions, or community houses have secondhand stores to help local neighborhoods.
Other secondhand store options are consignment shops which range from those with low to mid priced items and goods, all the way to specialized boutiques with luxury clothing and accessories. In a consignment situation, the owner of the item for sale arranges with the store to sell the product. Once the product is sold, the profit is shared. Specialty secondhand stores include Vintage or Retro shops that often sell hard to find, unique items.
Online markets for secondhand goods have greatly increased over the years. Popular online companies for used goods include eBay, Poshmark, Beyond Retro, thredUP, Swap, Depop, The RealReal, and Vestiaire Collective.
Also online, some well-known retailers now take part in the more sustainable practice of secondhand experiences. For instance, Patagonia’s Worn Wear initiative allows customers to trade in or purchase used Patagonia merchandise, and Urban Outfitters offers its Urban Renewal sustainability sourced vintage option for customers who want more eco-friendly alternatives. These retailers understand customers are more environmentally conscious about carbon emissions, waste, and pollutants, and the effect they can have on our planet.
Growth projections
The growth of secondhand shopping is increasing. In treadUP’s 2023 resale report, the company projects that on a global basis, the secondhand market will reach $350 billion by 2027. That is a drastic increase from $138 billion in 2021 and $211 billion in 2023. Further, the company estimates that secondhand apparel will comprise 10% of the world’s apparel market by 2024.
Consumers in the U.S. are supporting the trend of secondhand buying. In 2027, threadUp expects the U.S. secondhand market to grow to $70 billion from $39 billion in 2022. The $70 billion estimate is made up of $42 billion from the resale market and $28 billion from traditional thrift stores and donations. This data demonstrates a generational shift in consumer buying, as approximately 83% of Generation Z shoppers (born between 1997 and 2012) are open to purchasing secondhand apparel.
Call to action
Shopping secondhand is a smart way for consumers to deal with inflationary pressures and environmental concerns. Some secondhand stores now offer luxury brands or retro labels at steeply discounted prices. Whether in person or online, one can find amazing treasures for less at a wide range of secondhand stores. Something used can be something new to you!
Sources:
United States Inflation Rate (tradingeconomics.com)
CPI: America’s final inflation report for 2023 just came in | CNN Business
Consumer Interest in Secondhand Goods Driven by Inflation (pymnts.com)
Secondhand platforms like ThredUp see back-to-school boost (modernretail.co)
thredUP_2023_Resale_Report_FINAL.pdf
Where Millennials end and Generation Z begins | Pew Research Center
