End-of-year sales are expected to be robust for secondhand clothes stores such as Poshmark and RealReal in the United States. Due to a lack of new apparel in stores, customers are turning to secondhand stores to fill their holiday shopping bags.
In the run-up to the holiday season, apparel had the greatest online out-of-stock levels of any US retail industry. Shortages are projected to drive Americans to secondhand clothes stores, which are less affected by global supply chain concerns since they source their inventory mostly from American homes’ closets. Secondhand businesses have grown at a breakneck speed in recent years, as eco-conscious Gen Z and millennial customers increasingly consider buying secondhand things as a trendy way to reduce their environmental imprint. Because inventory is now short, people buy anywhere they can to ensure that they have items in time for the holidays.
The market is anticipated to expand, with more than a third of customers planning to buy used clothing this Christmas season, with the number of people under the age of 40 increasing by 50%. Poshmark’s holiday quarter sales are predicted to increase by 22.9 percent, while RealReal’s are expected to increase by 53.3 percent.