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Secondhand to Reach $82 Billion by 2026

The resale industry is growing even faster than experts predicted in years past. With 2021 setting a five-year record in resale growth and consumer trends supporting more secondhand purchases, now appears to be a fantastic time to enter the resale clothing marketplace.

The numbers tell a powerful story. If you’ve been considering an investment in a resale clothing franchise like Uptown Cheapskate, here are some stats that might help you make the leap to business ownership.

Resale is poised for tremendous growth

Secondhand and resale clothing have truly hit their stride in recent years. In 2013, the secondhand fashion industry (encompassing traditional thrift and resale) was worth $5 billion globally. In 2021, the industry was valued at $35 billion. Resale saw the highest amount of growth in five years, increasing by 58 percent in 2021.

This decade-long trend of growth is only expected to continue. According to thredUP’s Resale Report published in May 2022, the global secondhand market is expected to more than double in the next five years. By 2026, experts believe the market will reach $82 billion.

Compared to the broader retail clothing sector, resale clothing is on track to grow 16 times faster in the years to come. Around 74 percent of consumers have shopped or are open to shopping for secondhand apparel. Resale is maintaining its hold on customers, too. ThredUP found that 81 percent of first-time thrifters plan to spend the same amount or more on secondhand in the next five years. This indicates just how many consumers are turning to resale clothing instead of purchasing their apparel new!

These growth trends are great news for owners of Uptown Cheapskate stores. With the future of the industry looking bright, new and existing owners have the opportunity to capitalize on a thriving industry.

Trends motivating resale shoppers

There’s already a large base of customers who are at least open to the idea of shopping secondhand, if not making resale a part of their regular routine. Although people of all ages and backgrounds shop for resale clothing, studies have highlighted some trends.

Young people, in particular, are leading the resale revival. Millennials and Gen Z have embraced resale apparel in droves, making “thrifting” more mainstream. One of the biggest reasons for this is cost. The number-one motivator for secondhand purchases was to save money. As inflation squeezes budgets tighter, cost savings will mean even more to conscious consumers.

According to thredUP, Gen Z’s second-most important reason for buying resale was to be more sustainable. These young buyers care about the planet and believe their consumption habits have the power to make a difference. Secondhand helps keep clothing in rotation for longer, meaning less waste is sent to landfills and fewer items are purchased new.

How Uptown Cheapskate is positioned for growth

There’s no question that resale is growing. As more brands and retailers enter the secondhand clothing market, it will become even more important for businesses to differentiate themselves.

Uptown Cheapskate has been steadily growing since 2008, solidifying our position in the market and developing what makes us unique. Our upscale aesthetic is a huge hit with Millennial and Gen Z shoppers and helps transform the way they view secondhand shopping. We also leverage a tremendous charitable angle by incorporating ways to support the local community, developing countries and the planet, all at once.

Uptown Cheapskate has already grown to 100 stores across the nation, with even more in the works. Our year-over-year growth illustrates just how many passionate entrepreneurs have noticed the immense opportunity in the resale market and have taken the leap.

Are you ready to join our growing network of resale clothing stores and make a difference in your community? Request information about the Uptown Cheapskate franchise opportunity today.