Used Merchandise Stores NAICS 459510

Jan 9, 2026 - Goodwill Leverages Real Estate to Fuel Resale Growth

• 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.
• US consumer sentiment showed modest improvement in January 2026, a mixed signal for used merchandise retailers, according to the University of Michigan’s Index of Consumer Sentiment. The index rose to 54.0, up 2.1% month over month, but remains 24.7% below January 2025, reflecting continued consumer caution. Lower-income consumers reported improving sentiment, a key demographic for thrift and resale retailers, while higher-income sentiment softened. Inflation pressures remain elevated, with year-ahead inflation expectations at 4.2%, reinforcing price sensitivity and value-seeking behavior. Separately, The Conference Board reported its Consumer Confidence Index fell 3.8 points to 89.1 in December, with the Expectations Index at 70.7, signaling elevated recession risk. Plans to purchase used cars continued to climb while intentions to buy new big-ticket items declined, supporting ongoing consumer trade-down behavior that remains favorable for used-merchandise retailers.

• 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.
• While five services industries reported contraction in December, 11 industries reported growth, including the Retail Trade industry, according to an ISM Services PMI Report. Executives in the Retail Trade industry reported increases in business activity, new orders, employment, prices paid for materials and services, and inventories, along with decreases in new export orders, imports, and order backlogs in December. Other industries reporting growth during the period were Finance & Insurance; Accommodation & Food Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Mining; Health Care & Social Assistance; Information; Wholesale Trade; Public Administration; and Utilities. Industries reporting contraction during the period include Management of Companies & Support Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Construction. Overall economic activity in the services sector continued to expand in December, registering 54.4%.