Used Merchandise Stores
Description
Companies in this industry sell used merchandise such as clothing, antiques, furniture, books, and jewelry. Major companies include Goodwill, The Salvation Army, Savers, and Winmark (all based in the US), Bookoff (Japan), and Oxfam (UK).
The secondhand and resale market is forecast to reach about $367 billion by 2029, according to the annual forecast from ThredUp.
The used merchandise stores industry in the US includes about 20,000 stores with combined annual revenue of about $15 billion.
The industry includes resale shops, consignment shops, thrift shops, and antique stores. Excluded are stores that sell used cars, boats, trailers, and mobile homes. Pawn shops, which sell a variety of used merchandise but generate most of their revenue from interest and fees on loans, are discussed in this profile but not included in store count, revenue, or employment statistics.
COMPETITIVE LANDSCAPE
Changes in consumer buying habits and an influx of new competitors and investor money are enlarging and reshaping the market for used apparel. The US secondhand apparel market grew five times faster than the broader retail clothing market in 2024, according to ThredUp.
Demographics, consumer income, and consumer tastes drive demand. The profitability of individual companies depends on efficient procurement and effective merchandising. Large companies have advantages in marketing and finance. Small companies can compete effectively by offering specialty products, serving a local market, or providing superior customer service. The US industry is fragmented: the 50 largest US companies account for about 30% of sales.
Used merchandise stores compete with retailers offering new merchandise, as well as with individuals selling used merchandise privately or through websites, such as eBay, Craigslist, and Facebook Marketplace or product swapping through services like Freecycle. Used furniture and antique stores compete with auction houses.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include antiques, collectible, and art (about 95% sales). Other products include used home entertainment, antiques over 100 years old, and collectibles.
Resale shops buy merchandise directly from owners. Consignment shops accept merchandise and pay owners a portion of sales (typically 40-60%) when the item is sold. Thrift stores are nonprofit organizations that resell donated items and raise money for charity. Pawn shops hold goods from customers as collateral on loans, often referred to as "pawn loans." If the customer does not repay the loan, the pawn shop can sell the goods.
Stores range between 200 and 5,000 square feet. Sales per square foot generally range from $40 to $100 and are very low compared to most retailers. Common locations include strip malls and stand-alone buildings. Used merchandise retailers are rarely located in traditional shopping malls.
Companies may specialize in a category (such as women's apparel) or a price range within a category (designer women's apparel). Antique stores typically specialize in either a low, middle, or high price/quality tier. Most companies look for "gently used" items in good condition; however, retailers may repair or refurbish items. Many used merchandise retailers offer new goods to complement their inventory of used products.
Companies acquire used goods from individuals, wholesalers, dealers, nonprofit organizations, internet sites, or other used merchandise retailers. Antique stores may buy merchandise from flea markets, salvage companies, or pickers (specialized wholesalers). Thrift stores may use donation bins or have pick-up routes. Companies may buy large amounts of donated goods from nonprofits at a bulk rate. Sometimes, up to half of donated items aren't suitable for resale, requiring companies to sort through donations. Leftover merchandise may ship to developing countries or recycling organizations.
Catalogs, price guides, newspapers, the internet, and employee experience help companies assess the value of used items. Estimating value for expensive goods, such as jewelry and antiques, can be especially difficult and may require a professional appraisal.
The secondhand and resale market is forecast to reach about $367 billion by 2029, according to the annual forecast from ThredUp.
The used merchandise stores industry in the US includes about 20,000 stores with combined annual revenue of about $15 billion.
The industry includes resale shops, consignment shops, thrift shops, and antique stores. Excluded are stores that sell used cars, boats, trailers, and mobile homes. Pawn shops, which sell a variety of used merchandise but generate most of their revenue from interest and fees on loans, are discussed in this profile but not included in store count, revenue, or employment statistics.
COMPETITIVE LANDSCAPE
Changes in consumer buying habits and an influx of new competitors and investor money are enlarging and reshaping the market for used apparel. The US secondhand apparel market grew five times faster than the broader retail clothing market in 2024, according to ThredUp.
Demographics, consumer income, and consumer tastes drive demand. The profitability of individual companies depends on efficient procurement and effective merchandising. Large companies have advantages in marketing and finance. Small companies can compete effectively by offering specialty products, serving a local market, or providing superior customer service. The US industry is fragmented: the 50 largest US companies account for about 30% of sales.
Used merchandise stores compete with retailers offering new merchandise, as well as with individuals selling used merchandise privately or through websites, such as eBay, Craigslist, and Facebook Marketplace or product swapping through services like Freecycle. Used furniture and antique stores compete with auction houses.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include antiques, collectible, and art (about 95% sales). Other products include used home entertainment, antiques over 100 years old, and collectibles.
Resale shops buy merchandise directly from owners. Consignment shops accept merchandise and pay owners a portion of sales (typically 40-60%) when the item is sold. Thrift stores are nonprofit organizations that resell donated items and raise money for charity. Pawn shops hold goods from customers as collateral on loans, often referred to as "pawn loans." If the customer does not repay the loan, the pawn shop can sell the goods.
Stores range between 200 and 5,000 square feet. Sales per square foot generally range from $40 to $100 and are very low compared to most retailers. Common locations include strip malls and stand-alone buildings. Used merchandise retailers are rarely located in traditional shopping malls.
Companies may specialize in a category (such as women's apparel) or a price range within a category (designer women's apparel). Antique stores typically specialize in either a low, middle, or high price/quality tier. Most companies look for "gently used" items in good condition; however, retailers may repair or refurbish items. Many used merchandise retailers offer new goods to complement their inventory of used products.
Companies acquire used goods from individuals, wholesalers, dealers, nonprofit organizations, internet sites, or other used merchandise retailers. Antique stores may buy merchandise from flea markets, salvage companies, or pickers (specialized wholesalers). Thrift stores may use donation bins or have pick-up routes. Companies may buy large amounts of donated goods from nonprofits at a bulk rate. Sometimes, up to half of donated items aren't suitable for resale, requiring companies to sort through donations. Leftover merchandise may ship to developing countries or recycling organizations.
Catalogs, price guides, newspapers, the internet, and employee experience help companies assess the value of used items. Estimating value for expensive goods, such as jewelry and antiques, can be especially difficult and may require a professional appraisal.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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