"When President Donald Trump's sweeping tariffs were announced earlier this year, retail executives predicted that thrifting and secondhand shopping companies would be unexpected winners. Now, that forecast has come true:Companies including ThredUp, Depop, OfferUp and more are reporting record user growth, increased engagement and sales spikes, as consumers hunt for duty-free bargains. "Tariffs are starting to creep into the psychology of the consumer, whether they're realizing the price or they just have fear about the prices," ThredUp CEO James Reinhart told sister publication, Modern Retail."
"That mindset helped the resale platform record its best two quarters of customer acquisition ever, with new buyers up 95% in the first quarter and nearly 75% in the second. ThredUp's financial performance underscores the point: Revenue rose 16% year-over-year to a record $77.7 million in the most recent quarter, while gross margin approached 80%. The company also raised its full-year outlook for revenue and adjusted EBITDA margin."
Tariffs on imports have shifted consumer behavior toward thrift and secondhand shopping, as buyers seek duty-free bargains and fear higher prices. Resale platforms report surging user growth, engagement and sales. ThredUp added new buyers up 95% in Q1 and nearly 75% in Q2, with revenue up 16% year-over-year to $77.7 million and gross margin near 80%, prompting an increased full-year outlook. Depop posted 35% global gross merchandise sales growth and 54% U.S. sales growth, with its audience expanding beyond Gen Z. The U.S. secondhand apparel market is projected to reach $74 billion by 2029 amid ongoing profitability challenges for the industry.
Read at Digiday
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