Used Merchandise Stores NAICS 459510

Jul 7, 2026 - Price-Conscious Consumers Boost Resale: Mastercard

• Mastercard’s June 2026 “The Next Era of Conscious Consumption” report highlights favorable demand trends for the US used merchandise industry as resale shopping becomes increasingly mainstream. Price remains the biggest driver, with 78% of consumers saying they buy used to save money, while secondhand clothing sales in the world’s top 20 circular economies rose 28% year over year in 2025, far outpacing the 8% growth at traditional clothing stores, according to the Mastercard Economics Institute. Younger consumers are fueling the shift, with more than 60% of Gen Z and Millennials willing to pay more for sustainable products and showing much greater adoption of resale and rental models than older shoppers. The report also found 71% of consumers prefer repairing products rather than replacing them, reinforcing broader consumer acceptance of circular commerce and supporting long-term growth opportunities for resale retailers.
• Consumer confidence remained weak in June 2026, creating potentially favorable conditions for US used merchandise stores as budget-conscious consumers may seek lower-priced alternatives. The Conference Board Consumer Confidence Index edged up to 91.2 from 90.6 in May, while the Present Situation Index fell to 116.4 as labor market perceptions weakened, although the Expectations Index held at 74.4, reflecting modestly improved views of future business conditions and incomes. Separately, the University of Michigan's Consumer Sentiment Index rose 10.5% to 49.5, with the Current Economic Conditions Index increasing to 47.7 and the Consumer Expectations Index climbing 15.0% to 50.7. Despite these gains, sentiment remained 18.5% below year-earlier levels, and more than half of consumers continued to cite high prices as a financial burden. These conditions may encourage shoppers to trade down to secondhand goods, supporting demand for resale, thrift, and consignment retailers.

• ThredUp’s 2026 Resale Report projects the US secondhand apparel market will reach $78.8 billion by 2030, growing at an average annual rate of about 7.3%, signaling continued momentum for the used merchandise retail industry, according to Retail Dive. Resale is growing far faster than the broader clothing market, with the US secondhand market expanding nearly four times faster than retail clothing in 2025. Gen Z and millennials are expected to account for more than 70% of resale market growth, while shoppers increasingly discover secondhand products through social media, AI shopping tools, and in-person browsing. The report suggests used merchandise retailers could continue gaining market share from traditional apparel sellers as consumers prioritize value and economic uncertainty encourages secondhand spending.
• Growth in luxury resale is reinforcing demand for the US used merchandise industry, particularly in higher-value categories, according to a Wall Street Journal report. The global luxury resale market reached an estimated $59 billion last year, making it one of the fastest-growing segments of the luxury market and roughly the same size as luxury brands’ off-price sales channel, their third-largest by revenue. Consumer behavior is shifting toward secondhand goods: the share of secondhand items in shoppers’ wardrobes has increased 7 percentage points to 28% since 2020, according to Boston Consulting Group. Younger shoppers are driving the trend, with Gen Z making nearly half of handbag purchases at secondhand retailers. For used merchandise retailers, these trends point to expanding resale demand and opportunities in premium categories such as handbags, even as luxury brands experiment with partnerships, trade-in programs, and certified preowned models to capture a share of the growing resale market.