Used Merchandise Stores NAICS 459510

Mar 6, 2026 - Secondhand Luxury Demand Expands Resale Market

• 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.
• US consumer confidence rose modestly in February, suggesting a cautious but stable demand environment for the used merchandise industry, according to a leading indicator. The Conference Board Consumer Confidence Index increased 2.2 points to 91.2, up from 89.0 in January, though still well below the November 2024 peak of 112.8. The Present Situation Index declined 1.8 points to 120.0, while the Expectations Index rose 4.8 points to 72.0, reflecting slightly improved outlooks for income and business conditions. However, consumers continue to cite inflation and the cost of goods as top concerns, and confidence declined across most income groups. Spending trends show consumers prioritizing lower-cost activities and necessary services while reducing some discretionary spending, including travel. For used merchandise retailers, these conditions can support demand as price-sensitive consumers seek lower-cost alternatives, particularly amid persistent concerns about inflation and household finances.

• According to a recent report in the Wall Street Journal, Goodwill is repositioning itself as a more modern, attractive player in the resale industry by investing in larger, brighter stores located in affluent areas to improve both donations and sales. This real-estate-led strategy is yielding higher-quality inventory, including designer brands such as Gucci, Chanel, and Dior, sometimes priced under $10. The approach is resonating with consumers: shoppers spent more than $5.5 billion at Goodwill stores in the US and Canada last year, a 37% increase from 2019 and a record high. Foot traffic per location rose 9.5% in the first 10 months of 2025, more than double the growth of clothing retail overall. Expansion is accelerating, with 42 net-new stores opened last year. Increased engagement from Gen Z and resale-focused shoppers, including frequent online resellers, underscores Goodwill’s growing relevance in the circular economy.
• Amid economic uncertainty and tighter consumer budgets, secondhand retailers are poised for a strong holiday season, according to a ThredUp–GlobalData survey. The survey found that shoppers plan to allocate 40% of their holiday budgets to resale gifts, with 80% of millennials open to secondhand giving. Nearly half of respondents are also considering selling personal items to fund purchases. Broader data from ICSC and JLL show consumers are prioritizing value: 71% plan to be more selective, and lower-income households expect to spend 24% less overall. Despite this, gift budgets may remain stable. ThredUp’s Q2 performance reflects the trend, with revenue up 16% year-over-year to $77.7 million and active buyers rising 17% to 1.47 million. For used merchandise retailers, the shift signals growing mainstream acceptance and a strategic opportunity to capture value-driven holiday demand.