Retailers Embrace Resale to Meet Consumer Demand but Face Integration Challenges

As pressure to incorporate sustainability into business models mounts, apparel retailers are increasingly viewing resale not just as an ethical choice but as a regulatory necessity. ThredUp’s recently released 2026 Resale Report reveals that the majority of retailers—66%—now consider resale a potential solution to compliance issues. Moreover, 36% believe it could help mitigate financial liabilities in the short term.

This annual report, an insightful dive into consumer perceptions and retailer readiness, draws from extensive data offered by GlobalData, which assesses the evolving secondhand market through consumer surveys, real-time retail analytics, and Third-Party brand performance metrics. It captures emerging trends in resale as brands struggle to catch up with the growing demand.

The Compliance Factor

While ThredUp brands resale as one of the most actionable strategies available to reduce waste, it's apparent that only 16% of surveyed retailers are prepared to scale their resale efforts immediately. A striking 38% of respondents identified operational and logistical obstacles as key barriers, yet 32% acknowledged the potential of Resale-as-a-Service (RaaS) models to help accelerate their resale strategies.

The demand for resale integration is especially pronounced among younger consumers. Over half (58%) of retailers acknowledged that lacking a resale model puts them at a persistent disadvantage, with 32% deeming it essential for competitiveness. Interestingly, the report illustrates that 60% of Gen Z and millennial shoppers trust brands more when they offer resale options. Additionally, 47% of consumers indicated they would be more likely to make a first purchase if a trade-in credit were available.

Resale as a Core Business Strategy

ThredUp's chief sustainability officer Alon Rotem emphasized that trade-in programs have transitioned from being ancillary perks to fundamental business requirements, driving customer acquisition and brand longevity.

According to GlobalData's January-February 2026 survey of 3,268 American adults, various factors—value, individual expression, discovery, and sustainability—are fueling consumer interest in the secondhand sector. The global secondhand market saw approximately 13% growth year-over-year, claiming around 10% of the total apparel spending.

Among consumers, shopping preferences are shifting, with 48% starting their searches for new clothing by checking resale options first. The data shows that 58% of Gen Zers and 55% of millennials prioritize secondhand apparel over new items, reflecting a pivotal change in consumer behavior driven by economic factors.

The Importance of Value and Economic Pressures

Economic factors are swiftly converting resale from an alternative to a necessity, with 72% of consumers indicating that rising prices are influencing how they spend on apparel. To counterbalance these increases, 27% plan to boost their secondhand purchases. As consumers become more price-conscious, many are re-evaluating the value of new items based on their resale potential. The report reveals that 60% of consumers now consider resale value a principal factor when purchasing new clothing, marking a 13 percentage point rise from the previous year.

Furthermore, nearly half of young shoppers report reducing their intake of low-quality apparel due to its lack of resale viability. The trend towards monetizing wardrobes is clear, with 57% of those selling clothes citing income generation as their primary motive, a figure that rises to 61% among Gen Z participants.

Brand Insights and Technological Adoption

The report outlines which brands are resonating with consumers, listing J.Crew, Zara, and Gap among the top by order volume. Brands like Everlane and Michael Kors have notably regained traction in the secondhand market.

As technology reshapes consumer experiences, Gen Z is particularly engaging with AI shopping tools. The findings suggest that 63% of Gen Z shoppers are comfortable with technology that aids their secondhand shopping journey, while a majority express readiness to leverage AI for various tasks—24/7 monitoring of resale platforms, price negotiation, and utilizing AI to optimize their digital closets.

Dan DeMeyere, ThredUp’s chief product and technology officer, pointed to a fundamental shift in e-commerce dynamics, with AI leading the way in how consumers discover and negotiate secondhand offerings. This trend suggests that brands must adapt quickly to meet evolving consumer expectations in an increasingly competitive market.