ThredUP CEO says secondhand clothing market's 'best years' are ahead

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The secondhand clothing market is surging, and both older and younger generations have jumped on the trend. ThredUP CEO James Reinhart says its best years are just ahead.

, which rose 6% year over year in February and remains far above the Federal Reserve's target of 2%.

Reinhart agreed that these clothes provide great value for cash-strapped consumers as concerns over the U.S. economy continue."Year after year, we hear that value is the biggest motivator behind apparel purchases," Reinhart said. "This becomes even more acute in an inflationary environment, and secondhand has been a bright spot for the consumer in a time where they’reStill, value isn't the only driver behind this phenomenon.

However, younger generations, like Gen Alpha and Gen Z, are "resale natives, meaning secondhand has been mainstream their entire lives and is viewed more as a default shopping experience that's both common and familiar," he added. Currently, nearly two-thirds of Gen Z shoppers say they look for an item secondhand first before looking at new clothing, according to the report.

"As Gen Alpha grows up, starts forming their own shopping habits and gains more purchasing power, I think secondhand market growth will reflect that," Reinhart added.Over the next five years, online resale – the fastest-growing sector of the U.S. secondhand market – is expected to grow 21% annually on average, notching $38 billion by 2027, according to the data.

 

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