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ThredUp launched in 2009 as a peer-to-peer marketplace for gently used children\u2019s clothes. A decade later, it had two large distribution centers, partnerships with several designer brands, and a handful of physical locations where shoppers could peruse clothes for all genders and age brackets.<\/p>\n
Now, nearly two decades on, the online thrift store isn\u2019t just a niche company frequented by treasure hunters but a core player in the clothing retail game.<\/p>\n
\u201cResale is no longer just growing, it\u2019s taking direct market share,\u201d ThredUp CEOJames Reinhart said in a statement accompanying ThreadUp\u2019s 2026 Resale Report. \u201cIn 2025, the U.S. secondhand market grew nearly 4X faster than the broader retail clothing market.\u201d<\/p>\n
The implications of that tell a troubling story about consumer sentiment and behavior.<\/p>\n
ThredUp says secondhand shopping is essential for many shoppers<\/p>\n
For many consumers, thrift and consignment shopping has long been a choice. Rather than being driven by economic necessity, consumers have shopped secondhand out of a preference for vintage styles, concern for the environment, or a desire for a \u201ctreasure hunt\u201d experience.<\/p>\n
New data from ThredUp indicates this may be changing as \u201ccost pressure is moving resale from optional to essential.\u201d\u00a0<\/p>\n
In 2025, 59% of consumers shopped secondhand, ThreadUp\u2019s 2026 Resale Report found. Almost three-quarters (72%) of those surveyed for the report said that rising prices are impacting their apparel spending, and 27% said they plan to increase secondhand shopping in order to further offset those prices.<\/p>\n
Data from Placer.ai tells a similar story.<\/p>\n
\u201cAs economic pressure continues to reshape consumer behavior, one retail segment is accelerating through the storm,\u201d a recent report from the location analytics firm said. \u201cThrift stores, long viewed as a niche segment, are emerging as a core apparel channel \u2013 attracting more affluent value-seekers and a younger generation of shoppers.\u201d<\/p>\n
Between the second quarter of 2022 and the end of 2025, foot traffic at all thrift stores increased by 25.6%, the report continued. This far outpaced visits to luxury retailers, which grew 1.3% during the same period, and traditional retailers, which declined by 7.8%.<\/p>\n
ThredUp’s 2026 Resale Report found that secondhand shopping is growing at two times the rate of traditional retail.<\/p>\n
Getty Images<\/p>\n
The profile of secondhand shoppers is evolving<\/p>\n
The global secondhand market has become a $393 billion industry, representing roughly 10% of total apparel spend, ThredUp reports.\u00a0<\/p>\n
That number is only expected to grow over the next few years, and the profile of the shoppers driving that growth is surprising.<\/p>\n
\u201cThe global secondhand market is entering a more competitive, structurally complex phase. We expect the U.S. market alone to reach $78.8 billion by 2030,\u201d GlobalData\u2019s Managing Director and Retail Analyst Neil Saunders said in a statement. \u201cGen Z and Millennials [are driving] the vast majority of this value.\u201d<\/p>\n
In 2025, 58% of Gen Zers and 55% of millennials prioritized buying secondhand over buying new, and a whopping 62% of Gen Zers made at least one secondhand purchase over the course of the year.<\/p>\n
Related: Ulta makes big change customers will notice right away<\/p>\n
This affinity for lower-priced apparel can be attributed, at least in part, to the generations\u2019 tight financial position.<\/p>\n
Among these generations, 7 out of 10 people feel that wealth is out of reach and survival spending has become the norm, according to a 2026 survey conducted by Beyond Finance and Operation Hope.<\/p>\n
Additionally, 32% of the survey respondents say they have used \u201cbuy now, pay later\u201d platforms for essentials like groceries and utilities, and 1 in 3 perceive themselves as \u201cbarely surviving\u201d financially.\u00a0<\/p>\n
With budgets stretched that thin, it\u2019s no surprise that thrift and consignment shopping has become such a popular way to fill closets.<\/p>\n
But budget-conscious shoppers aren\u2019t the only people utilizing thrift stores. The median household income of secondhand shoppers has increased significantly over the past four years, according to Placer.ai, going from $74,900 in 2022 to $75,700 in 2025.\u00a0<\/p>\n
Thrift stores are also increasingly popping up in affluent neighborhoods, and the difference between the retailer\u2019s potential market and captured market is beginning to flatten out.<\/p>\n
This seems to indicate that it\u2019s not just young, and low-income earners that are feeling the pinch, but consumers across all income and age brackets.<\/p>\n
Reselling has become a source of income<\/p>\n
Millennials and Gen Zers aren\u2019t just using secondhand shopping to fill their closets, they\u2019re also turning to the practice to empty them.<\/p>\n
In light of their strained financial positions, a growing number of Gen Zers and millennials see their closets as an asset.<\/p>\n
\u201cOnline resale activity is increasing, particularly among younger, digitally savvy consumers,\u201d Placer.ai\u2019s report said. \u201cAs economic uncertainty persists, many are turning thrifting into a side hustle, leveraging low-cost sourcing and online platforms to generate income.\u201d<\/p>\n
More than half of resellers sell their unwanted clothing items for the additional income, ThredUp says. The trend is particularly strong among Gen Zers, who are 10% more likely to monetize their wardrobes.<\/p>\n
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As reselling as a side hustle continues to grow, it will have a significant impact on the apparel market as a whole.<\/p>\n
In fact, 49% of millennials and Gen Zers told ThredUp they have already stopped purchasing low-quality apparel because it can\u2019t be resold.<\/p>\n
\u201cWe\u2019re moving from a linear apparel economy toward a resale flywheel, where consumers increasingly buy with future value in mind,\u201d Reinhart said in ThredUp\u2019s report.\u00a0<\/p>\n
While this \u201cresale flywheel\u201d has acted as a safeguard against inflation for buyers and sellers, its rapid acceleration highlights a worrisome truth about the current state of the economy. Thrifting is no longer just a fun weekend hobby, but a necessary survival tactic for an American consumer base that is increasingly being priced out of the traditional retail market.<\/p>\n
Related: Aldi shoppers get very good news<\/p>\n
#ThredUp #spots #worrisome #trend #consumer #behavior<\/p>\n","protected":false},"excerpt":{"rendered":"
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