Used Merchandise Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 12,400 used merchandise retailers in the US resell previously-owned goods, except for motor vehicles (autos, boats, motorcycles, recreational vehicles). Major revenue categories include used clothing, antiques, furniture, collectibles, books, and jewelry. Antiques are items over 100 years old. Collectibles may be old, but less than 100 years old. The industry includes permanent flea markets, but excludes pawn shops.
Variable Supply
Sources of supply for the used merchandise industry can vary and are often erratic.
More Resale Shoppers
More shoppers plan to frequent resale stores, as the used merchandise industry evolves and adopts features of the traditional retail model.
Industry size & Structure
The average used merchandise retailer operates out of a single location, employs 16 workers, and generates nearly $2 million annually.
- The used merchandise retail industry consists of about 12,400 firms that employ about 205,000 workers and generate $24.4 billion annually.
- The used merchandise industry is fragmented; the top 50 companies account for 33% of industry revenue.
- The industry includes chains, franchises, and independent operators.
- Large firms include Savers, Winmark (owns Once Upon a Child, Plato’s Closet, Play-It-Again Sports, Music Go Round, Style Encore), and Uptown Cheapskate.
- Large non-profit service organizations, such as Goodwill and the Salvation Army, operate used merchandise retail locations.
Industry Forecast
Used Merchandise Stores Industry Growth
Recent Developments
Mar 14, 2025 - Tariffs Present Opportunity for Resale
- According to a report in Glossy, used merchandise stores may benefit from the cautious consumer environment created by the tariff rollouts by the Trump Administration. ThredUp’s 2025 Resale Report surveyed customers and retailers about their views on tariffs. About 60% of consumers expect tariffs to make apparel more expensive and plan to seek more affordable options like secondhand. About 80% of retailers expect disruption from tariffs, while 54% said they see resale as a “more stable source of clothing in the face of potential tariff fluctuation.” Resale shops are also expected to benefit from proposed legislation favoring circularity. According to ThredUp CEO James Reinhart, “The evolving landscape of tariffs and import regulations presents a fascinating dynamic for both the resale and broader apparel industries. While these changes introduce potential challenges, particularly for brands reliant on rapid, low-cost imports, they also create significant opportunities for resale platforms.”
- According to a report in CFO Dive, consumer confidence and spending levels, indicators of discretionary spending, fell due to consumer concerns about tariff effects. Consumer spending was down 0.5% in January 2025, according to the Bureau of Economic Analysis, as consumers reduced purchases of vehicles and other durable goods. All five components of the consumer sentiment index from the University of Michigan dropped in February, including a nearly 20% decrease in buying conditions for durable goods. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
- Online resale firm ThredUp divested its European unit called Remix in December 2024, to refocus on its core US market, according to a report in Retail TouchPoints. The company was sold in a management buyout led by Florin Filote, the general manager of Remix. ThredUp is retaining a minority stake in the company. ThredUp had acquired the Bulgaria-based Remix for $28 million in July 2021 to expand its reach into Europe. However, the business underperformed with revenue falling nearly 20% in Q2 2024 year over year. According to ThredUp CEO and co-founder James Reinhart, ThredUp’s Co-founder and CEO, “This transaction will allow ThredUp to focus on our core U.S. business and continue to innovate and evolve our marketplace.”
- A new study by the National Retail Federation (NRF) of the estimated impact of President Donald Trump’s tariff proposals shows the tariffs could cost American consumers between $46 billion and $78 billion in spending power. The study looked at the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China on six consumer product categories: apparel, toys, furniture, household appliances, footwear and travel goods. Per the study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay.” According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.” Used merchandise stores may benefit if consumers seek alternatives to costly new products due to increased tariffs.
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