These secondhand shops are gaining popularity with customers who value sustainability and rare items.  

Big box retailers like Walmart and Target have focused on keeping prices down, and have absorbed the increasing costs in shipping, labor, and materials for shoppers. Other retailers,Similar to Macy’sAnd Kohl’s, have raised prices to keep up with the uptick in costs.    

But resale companies The RealReal and ThredUp are playing up their secondhand supply chains, inventory levels,And pricing.   

“While many retailers have been forced to raise prices due to inflation or supply chain pressure, we do not have the same level of exposure,” James Reinhart, CEO of ThredUp, said on the company’s recent third quarter earnings call.  

ThredUp’s business is entirely sourced domestically from its users, according to Reinhart,And has no reliance on direct manufacturing for inventory.  

He said, “We chose to strategically lower our prices to reach as many customers during a time where consumers feel price pressure in many areas of their lives.”  

ThredUp’s prices averaged 15% lower in the third quarter compared to the same period last year. Reinhart said the company will continue to keep prices down through ThredUp’s domestic supply system.  

In its third quarter of 2013, the company posted record quarterly revenue at $63.3 million, an increase of 35% over last year. The company also saw record levels of buyers, at 1.4million, and record orders, at 1.3million, which grew 14% and 28% respectively year-over-year.  

Julie Wainwright, founder and CEO of the RealReal, said after its third quarter earnings that the company’s inventory has exceeded pre-Covid levels, adding “we believe we are well-positioned from a supply perspective as we enter the holiday season.”

She also noted that the RealReal is shielded from the inflationary impacts other businesses are seeing.  

The RealReal reported total revenue of $119 million in its third quarter, an increase of 53% compared to last year. 750,000 orders were placed in the third quarter of 2013, an increase 38% from last year.

Tim Ceci, the founder and president Tim Ceci Retail Consulting, said, “Adjacent, to the issue reselling, and all of the empty shopfronts, I feel very strongly, that retail is just changing.”  

Investors aren’t sold yet on these companies’ prospects, despite the global supply chain problems for retailers. ThredUp’sSince its initial IPO, stock shares were volatile. However, after the recent earnings results, which resulted in a temporary bounce, shares continued their decline. RealRealAlthough it saw an increase in earnings this week, the stock is still down close to 25% for 2018.

The secondhand niche continues to benefit from the secular support of the general consumer trend.

According to the report, total resale value is $51 billion by 2023. a recent report from ThredUp.

The resale industry is growing 11 times faster than traditional retail, according to Carolyn Thomas, president and CEO of Aravenda, a consignment software company. This trend is likely linked to two factors: supply chain logistics and the consumer’s shift to a sustainable mindset.  

This trend is also supported by young consumers such as Edwin Elliott, 25, a Miami resident who searches online for old-school pieces to create trendy outfits. Elliott stated that they can be hard to replicate “without genuine vintage pieces.” There are so many online resale shops, making it easy to find vintage pieces.  

Elliott stated, “Before going thrifting,” you will need to sort through heaps of junk and hope you find something you like.”  

Thrifting is an antiquated word for resale. Ceci says that the internet has made it possible. Ceci said, “Gen Z wants to resell secondhand items.”  

EtsyThe acquisition of the Company – a well-known online shop known for selling vintage and handmade items – was made by. resale app Depop in July for $1.62 billion, showing “significant potential to further scale,” according to Etsy CEO Josh Silverman in a statement announcing the deal. 

Etsy has seen its stock rise more than the marker during this year. 

Silverman described Depop as the “resale place for Gen Z customers” and hosts around 30 million users in over 150 countries. The resale brand appeals to younger consumers because of its focus on ethical and environmental shopping.  

Ceci explained, “It’s all about choices.” Ceci said that younger shoppers are more likely to be looking for retro designs and an environmentally-friendly way of shopping.  

StockX launched as the “Stock Market of sneakers” in 2016, but the website has since evolved into a place where people can sell and buy high-ticket items such as handbags, electronics, and clothing. In April, StockX completed a new round of funding that valued it at $3.8 billion, signaling the “broad recognition and excitement” for the company in the long-term, StockX CEO Scott Cutler said in a statement.  

Through resale sites like Depop, consumers can resell limited items that may have sold out and are no longer available directly from the retailer – a common occurrence, according to Elliott, “so, it’s hard not to buy off a resale site.”  

“When you pivot over and look at the RealReal, a lot of that relationship with the customer is on luxury or higher-end goods,” Ceci said.  

LululemonIn April, it was officially announced. launching its own resale program. Trove is a company that assists companies in setting up resale shops. The brand joined Trove and started piloting their program. ‘Like New’ program in California and Texas in May.   

ThredUp has struck several partnershipsIncluded is a deal Macy’sSecondhand apparel will be available in 40 stores starting August. J.C. Penney works with ThredUp to offer secondhand women’s clothing and handbags at 30 stores.  

Through its “resale as a service” platform, ThredUp is working with several retailers to help them provide secondhand products to customers, including Walmart, Everlane, Farfetch, Gap, Adidas, and Crocs.  

Ikea stated it will resell the Scandinavian company, even though Ikea was not involved in this. ready-to-assemble furniture store announcing this month it would offer a “buy back & resell” program in 33 of its U.S. stores through December 5, after piloting the service at a Philadelphia store.  

Ceci stated, “I’m optimistic amid all the evolution that is taking place.” “The resale industry is certain to be here for the long-term,” Ceci said.