ThredUp reports resale apparel market growing faster than retail

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ThredUp’s Lancaster flagship four-level distribution center opened last year with 200 employees and expects to expand to 2,000.

The U.S. secondhand apparel market grew seven times faster than the broader retail clothing market last year, according to a widely followed annual report on the state of the resale market.Last year, 39 more companies set up their own brand resale shops bringing the total to 163 retailers with resale programs, according to the ThredUp Resale Report 2024 released Wednesday by the online secondhand apparel company and retail analytics firm GlobalData.

Inflation is having an impact on the secondhand market. About 55% of consumers said they’ll spend more on secondhand apparel if the economy doesn’t improve.Thrifting is gaining ground with more generations, and 52% of consumers shopped secondhand apparel in 2023. About 63% of consumers who bought secondhand apparel last year made a purchase online.

The Lancaster facility operates on a multilevel garment storage system that provides 25% higher storage density while consuming 40% less energy than previous operations, ThredUp founder and CEO James Reinhart told investors last year. It also has an automated tag-photo studio that automates size and brand identification. A redesigned inspection studio uses automation for inbound processing.

 

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