Most of the time out of need, customers are finding innovative ways to stretch their budgets.
A growing number of people are thinking about thrift shopping as a means to save money after inflation took a toll on back-to-school budgets and as families feel the pressure of holiday expectations.
Finding bargains is undoubtedly nothing new. However, “thrifting” and secondhand purchasing have increased significantly since the Covid epidemic. Right now, the resale industry is expanding even more quickly than conventional retail.
“Resale continues to provide value in these uncertain times,” According to Brett Heffes, CEO of Winmark, the company that owns franchises for places like Play It Again Sports, Once Upon a Child, and Plato’s Closet.
According to a 2022 recommerce analysis by OfferUp, so-called recommerce increased by about 15% in 2021 — twice as quickly as the whole retail market and recording the industry’s fastest rate of growth ever.
Despite being dominated by clothing resale, OfferUp discovered that 82% of Americans, or 272 million people, buy or sell used goods, including electronics, furniture, household goods, and sporting equipment in addition to clothing.
According to Heffes, younger consumers, notably teens, have been a major driver of the rise. “We sell a lot of sneakers.”
According to a different CouponFollow research, thrift store customers save roughly $150 per month, or $1,760 year, on average, by purchasing used goods.
According to CouponFollow, though, there are other factors at play as well. Other aspects, such sustainability and the excitement of the search, were cited as motivation by shoppers.
It has gained in social acceptance as a result of its reputation as eco-friendly, according to Heffes. “When I started in this business, there was a stigma around purchasing previously owned items, and that stigma is gone.”
In reality, there are times when buying used is the only way to obtain a rare pair of Air Jordans or other highly sought-after and exclusive things.
According to Wells Fargo managing director Adam Davis, who works with recommerce retail organizations, one of the motivations driving resale is the desire to acquire a unique item, whether that’s “a Chanel handbag or Nike sneakers” – even if you end up paying more than the initial retail price.