What to Watch: Secondhand May Have Place With Department Stores, Specialty Retailers

Sales of secondhand apparel are trending upward, but by how much depends on whom you ask. Poshmark sees apparel resale by 2022 reaching $41 billion, from about $20 billion today, a 49 percent uptick, while ThredUp predicts $51 billion in five years, from $24 billion. With resale’s growth coming at the expense of traditional retailers, it’s no surprise that department stores can’t embrace it fast enough. Millennial and Gen Z consumers have made no secret of their dissatisfaction with uninspired assortments and uninspiring environments of department stores. The disconnect is partly responsible for department stores’ collective existential identity crisis. Now, apparel resale and rental are seen by some as a possible savior. ThredUp launched its Resale-as-a-Service platform to power apparel resale for Macy’s Inc. and J.C. Penney Co. Inc. through a pilot revealed last week, when ThredUp announced it had closed on $175 million in funding. Neil Saunders, managing director of GlobalData, said, “Admittedly, the tie-up will be very good for ThredUp, as it increases brand exposure. For Macy’s and J.C. Penney, it will only be marginally helpful. The partnerships won’t solve the problems in the rest of their businesses, nor will it transform their financials. It’s great that they’re thinking outside of the box, but both [retailers]

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