Source: Fortune
Summary
Americans are spending more on secondhand clothes, with a 22% increase in secondhand fashion transactions in March, driven by the K-shaped economy. The trend is fueled by increases in both discount apparel and secondhand luxury fashion spending. The Bank of America Institute report notes that the growth is concentrated at the high and low ends of the market, with top earners spending more and lower-income people cutting costs. Department stores are struggling, while secondhand clothing platforms like ThredUP and The Real Real are seeing significant revenue growth.
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The numbers tell one story.
Secondhand clothing transactions are up 22%, while department stores like Kohl’s and Dillard’s are struggling. ThredUP’s revenue skyrocketed 20% last year, and The Real Real increased its revenue by 15%. Gen Z is driving the demand for secondhand clothes and using resale platforms to supplement their income. The K-shaped economy is fueling a stratification in the clothing sector, with top earners spending more and lower-income people cutting costs.
The trend is a sign of a larger shift in consumer behavior, driven by persistent price pressures and high inflation. As consumers feel the pain, they’re turning to resale as a way to stretch their budgets.
Author: Evan Null
