Dive Brief:
- Spending in apparel, accessories and footwear resale outpaced traditional retail spending throughout 2024, according to a report from data insight firm Consumer Edge.
- Consumers aged 25 to 44 increased their resale spending share 6% year over year for the first ten months of 2024, the highest of any age group. The report attributed the uptick to a desire within that demographic to “balance their budgets and seek a more sustainable lifestyle.” By income, resale spending grew the most with middle income consumers, meaning those earning between $40,000 and $100,000 annually. The report said this group “might be most likely to trade down” from non-discount retailers to resellers due to increased budgetary restrictions.
- The overall findings indicate that the resale sector has “strong momentum heading into 2025” as consumers look for value and uniqueness and have “an increased focus on sustainability amid an uncertain economic environment,” per the report.
Dive Insight:
Resale has established itself as a critical growth driver in the apparel, accessories and footwear industry, Michael Gunther, vice president and head of insights at Consumer Edge, said in a press release.
“In a challenging economic climate, brands that recognize changing consumer sentiment and align with demand for affordability and sustainability are well-positioned to thrive in this dynamic market,” Gunther said.
In particular, the Consumer Edge report pointed to what it called “pure-play resale companies,” meaning resale firms that focus exclusively on secondhand sales. The report said those firms have been increasing their share of the overall apparel, accessories and footwear market as consumers look for alternatives to traditional retail.
“This growth does not even take into account the many brands that have started to incorporate resale into their own platforms and stores,” the report said. “For example, the trending athletic footwear and apparel [brand] On launched its own resale site along many other players like Banana Republic where you can buy previously owned pieces at discount. Many other stores have begun incorporating their own resale to compete with these growing trends.”
While Consumer Edge said these moves “don’t appear to have dented momentum for resale pure-plays,” there is a possibility that the resale category could find more consumers as more retailers enter the sector.
Another part of the resale ecosystem is social and peer-to-peer platforms, which Consumer Edge said are also driving growth.
“Peer-to-peer marketplaces such as Grailed and Depop led the charge in 2024,” Consumer Edge said in the release, adding that social shopping platform Grailed had a year-over-year spend growth of more than 180%, while Depop grew nearly 90%.
Vinted, Vestiaire Collective and ThredUp also performed well this year, while Clothes Mentor and Goodwill succeeded by offering both online and in-person shopping.
The sales information in the report was derived from Consumer Edge U.S. transaction data, which a spokesperson for the firm said comes from approximately 40 million active credit and debit cards.
