Insights Flash: Leverage CE data to understand which demographics and brands are fueling the resale category’s growth
The resale sub-industry continues to outpace the broader Apparel, Accessories & Footwear industry as many consumers opt for budget friendly, sustainable, and unique options amid a more cautious economic environment.
Resale Sub-Industry Growth
Spend growth in the retail resale sub-industry accelerated sharply from its summer low (-3%) to reach its highest growth of the year in October (+5%), indicating momentum heading into 2025. Outperformance against the broader Apparel, Accessories & Footwear industry widened later in the year, suggesting a more sustained consumer shift.
Pure-play resale companies have been gradually growing share of the overall Apparel, Accessories & Footwear industry as many consumers look for alternatives to traditional retail. This growth does not even take into account the many brands that have started to incorporate resale into their own platforms and stores. For example, the trending athletic footwear and apparel On launched its own resale site along many other players like Banana Republic where you can buy previously owned pieces at discount. Many other stores have begun incorporating their own resale to compete with these growing trends. Thus far, these moves don’t appear to have dented momentum for resale pure-plays, but as more retailers enter this market, the resale category may find more and more consumers.
Brand Drivers of Growth
Brands that have performed the best and that could be poised to benefit the most from the consumer shift toward budget friendly, sustainable, and unique pieces in 2025 are those that offer online platforms for convenience and ease of use.
Among brands with the highest retail resale growth were peer-to-peer online marketplaces Grailed and Depop. Grailed brings a social affinity to online shopping, allowing users to connect with each other to ask questions and find others with similar styles. Vinted, Vestiaire Collective, and ThredUp all performed well too.
Brands that offer both online and in-person shopping saw some growth this year as well. Clothes Mentor, another omni-channel retail resale store, has a curated collection of women’s upscale clothing and accessories, making it a go-to location for name brands at budget friendly prices.
Goodwill’s investment in its ecommerce business in late 2022 has helped the non-profit meet demand as many consumers continue to look for sustainable and low price goods.
Demographics of Importance
What may have happened during the pandemic as an environmentally friendly trend has taken on many buyers outside of the Gen-Z population as many consumers opt for lower priced goods amid a difficult macro economic environment.
Those aged 25-44 increased their spending share the most, increasing their portion of the subindustry spend by over 6% in the first ten months of 2024 versus the same time period the year prior as they look to balance their budgets and seek a more sustainable lifestyle. CE data shows that both Depop and ThredUp are overexposed to this key age group, suggesting that those companies could be set to benefit the most in 2025 if consumer shifts persist.
CE data shows that middle income cohorts ($40K-$100K) increased their spend share in the resale category the most in 2024, perhaps unsurprising as this group might be most likely to trade down from non-discount retailers as they feel the penny pinch this year.
Brands overexposed to this income group and therefore could be well positioned for 2025 include Goodwill and Salvation Army, both of which offer lower prices than the other players in the resale space.
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About the Authors
Rachel Zucker is an Insights Analyst for the CEIC. Follow her on LinkedIn.
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