Resale outperforms traditional retail; Grailed, Depop top resale sites
The demand for resale apparel, accessories and footwear is quickly growing and is expected to continue in 2025.
That's according to new data from consumer insights firm Consumer Edge, which found that resale spending outpaced traditional retail throughout 2024, driven by budget-conscious shoppers and an increased focus on sustainability amid an uncertain economic environment.
The outperformance against the broader apparel, accessories and footwear industry widened later in the year. Consumer Edge's consumer spending data revealed that resale spend growth accelerated sharply from a summer low of -3% to reach its highest growth of the year in October at +5%, signaling strong momentum heading into 2025 as consumers continue to seek value and uniqueness in their purchases, the company said.
The research shows that peer-to-peer marketplaces such as Grailed and Depop led the charge in 2024. Grailed's year-over-year spend growth exceeded 180% this year, while Depop grew nearly 90%, driven by the companies' convenience and social appeal.
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Other strong performers this year included Vinted and Vestiaire Collective, while omnichannel brands including Clothes Mentor and Goodwill have grown their business by investing in e-commerce. Brands such as On and Banana Republic have introduced resale platforms to compete with the resale trend, offering discounted secondhand pieces, although Consumer Edge says these efforts have not yet slowed down the momentum of resale-exclusive platforms.
Shoppers between the ages of 25 and 44 increased their share of resale spending by over 6% year-over-year, with middle-income ($40,000 to $100,000) consumers emerging as a key growth driver as the stigma behind buying secondhand items decreases.
"Resale has established itself as a critical growth driver in the apparel, accessories and footwear industry," said Michael Gunther, VP and head of insights at Consumer Edge. "In a challenging economic climate, brands that recognize changing consumer sentiment and align with demand for affordability and sustainability are well-positioned to thrive in this dynamic market."
A recent survey from Savers Value Village, one of the largest operators of thrift stores in North America, found that nearly four-in-10 consumers said that secondhand clothing makes up more than a quarter of their wardrobe. Nearly half of thrifters surveyed said they purchase secondhand clothing at least once per month.
