The clothing resale market is experiencing a surge in growth, outperforming the traditional apparel, accessories, and footwear industry. Driven by increasing consumer awareness of environmental impact and budget considerations, this trend signifies a potential long-term shift in consumer behavior.
Consumer Edge data reveals a significant acceleration in year-over-year spending growth in clothing and footwear resale, peaking at 5% in October after a summer low of -3%. This positive trajectory contrasts sharply with the broader fashion sector, indicating a sustained consumer preference for pre-owned fashion. This growth is attributed to “pure-play” resale companies capturing a larger share of the market, offering alternatives to conventional retail. Furthermore, established brands integrating resale into their platforms, like athletic apparel company On, further amplify this trend.
Leading the charge in resale retail growth are peer-to-peer online marketplaces such as Grailed and Depop, followed by Vinted. Traditional brick-and-mortar thrift stores like City Thrift, Uptown Cheapskate, Savers, and Texas Thrift are also witnessing growth. Omni-channel retailers, including Clothes Mentor and Goodwill, round out the list of top performers in the resale sector.
While Gen Z initially spearheaded the resale movement, Consumer Edge’s findings indicate that the 25-44 age group demonstrated the most significant increase in spending share within the resale market. This demographic increased their portion of resale spending by over 6% in the first ten months of 2024 compared to the same period in 2023. Platforms like Depop and ThredUp, with significant exposure to this age group, are poised to benefit if this trend continues into 2025.
The strongest spending power within the resale market in 2024 resides with middle-income consumers, particularly those earning between $80,001 and $100,000 annually. Following closely are consumers in the $40,000-$60,000 and $60,001-$80,000 income brackets. Organizations like Goodwill and Salvation Army are strategically positioned to cater to these demographics due to their strong presence within these income segments. Notably, Goodwill’s significant investment in its e-commerce platform has broadened its reach, enabling connections with a wider consumer base across various channels.
Looking forward, potential inflationary pressures, such as new tariffs anticipated in 2025, could further propel the growth of the resale market. This suggests that the current momentum in resale retail may translate into even more significant expansion in the coming year.
