Used Merchandise Stores NAICS 459510

May 6, 2026 - Secondhand Retail Gains Share

• 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.
• April 2026 consumer surveys from both the Conference Board and University of Michigan suggest growing opportunities for the used merchandise retail industry as shoppers become more cautious about spending. The Conference Board’s Consumer Confidence Index rose slightly to 92.8, showing some resilience in consumer views on jobs and income. However, the University of Michigan’s Consumer Sentiment Index remained historically weak at 49.8 as inflation, energy prices, and financial concerns weighed on households. For used merchandise retailers, weaker sentiment and rising price sensitivity could encourage consumers to seek lower-cost alternatives, including secondhand apparel, home goods, and electronics. The softer consumer outlook may continue driving traffic to resale and thrift retailers as shoppers look for value while reducing discretionary spending at traditional retailers.

• 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.
• 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.