The secondhand retail sector, long the domain of budget-conscious and environmentally aware Gen Z shoppers, may be poised for broader adoption as tariffs threaten to increase the cost of new goods.
Rising prices on imports, particularly apparel and electronics, are prompting consumers to consider more affordable options, potentially giving a new tailwind to the thrifting ecosystem, a report by Barron’s said.
The shift could not only benefit traditional thrift stores and online resale platforms, but also offer investors new opportunities.
Several companies—ranging from online upstarts to legacy players—are positioning themselves to tap into the expected surge in secondhand demand.
Younger generations have already embraced thrift stores — both brick and mortar and online — as a go-to shopping destination.
“Older shoppers could follow suit as firsthand product prices increase, said Sender Shamiss, CEO of ReturnPro. “”The economics of it are going to sway a lot of consumers,” she said.
Online resale platforms regain attention despite rocky IPOs
Online resellers like ThredUp, The RealReal, and Poshmark were among the earliest to attempt to scale secondhand fashion into digital marketplaces.
All three debuted on public markets in the past six years amid strong interest in the so-called “circular economy.”
However, scaling up proved difficult. ThredUp now trades at a fraction of its IPO price, as does The RealReal.
Poshmark exited the public markets entirely, selling to South Korea’s Naver for under half its debut valuation.
Despite these setbacks, investors are reconsidering the sector.
The ongoing US-China trade dispute has led many to anticipate higher import costs, especially on apparel, electronics, and home goods.
Resellers, who source products locally rather than from overseas suppliers, may now enjoy a competitive advantage.
James Reinhart, CEO of ThredUp, was candid about the upside during a March earnings call.
Anything that increases the cost of new apparel is likely also to provide some modest tailwind to secondhand goods, because we don’t have exposure to bringing in products from overseas.
A ReturnPro survey of over 500 consumers found that 55.4% would be more likely to buy from resale platforms to avoid paying more for tariff-inflated goods.
If borne out in consumer behaviour, that shift could provide significant upside for resale operators.
Thrifting’s cultural rise intersects with economic headwinds
The movement toward resale has been culturally driven, especially by younger shoppers.
According to Piper Sandler’s semiannual “Taking Stock with Teens” survey, 45% of teens bought clothing secondhand this spring.
This shift is reinforced by environmental awareness, social media trends, and economic caution.
In 2024, the US secondhand apparel market grew 14% year over year to $25 billion—five times faster than the broader retail clothing market, according to a widely cited 2025 report by ThredUp.
Projections suggest the market could reach $74 billion by 2029, growing at an average annual rate of 9%.
Still, economic uncertainty could moderate this momentum.
As concerns mount over a slowdown in discretionary spending, some fear demand for even low-cost options could dip.
“It’s bad for everybody, but I would say it’s less bad for resale,” said Jeff Lindquist, partner at Boston Consulting Group.
“Secondhand is simply better positioned to weather softer consumer sentiment.”
Etsy and eBay offer less risky resale exposure
Investors exploring the resale trend have a range of options, but many of the newer, digital-first platforms remain unprofitable and volatile.
For lower-risk exposure, analysts suggest Etsy. While its core business is handmade and vintage goods, the company’s acquisition of secondhand fashion platform Depop in 2021 has paid dividends.
Depop ranked as the fifth favourite teen shopping site this spring and grew gross merchandise sales by over 30% in 2024, even as Etsy’s total GMS declined.
BTIG analyst Marvin Fong believes Etsy’s risk profile remains attractive. “The combination of healthy [free cash flow], low expectations, reasonable valuation, and a strong competitive position offers a relatively favourable risk-reward,” he wrote in a note following Etsy’s February earnings report.
Another established player benefitting from the thrifting trend is eBay.
Though it has fallen off the cultural radar somewhat, eBay remains a key resale platform—especially for electronics, car parts, and collectibles.
Shares are up 7.3% year to date, outperforming the broader S&P 500’s decline.
“We still see eBay shares as one of the relatively safer places to hide in our e-commerce coverage,” wrote Lee Horowitz, an analyst at Deutsche Bank, in an April 14 note.
Brick-and-mortar players like Savers see new growth runway
Thrifting is not just an online phenomenon. Savers Value Village, a traditional thrift-store operator, went public in 2023 and has quietly become a standout.
Unlike many of its digital peers, the company has delivered consistent profits—posting adjusted earnings per share of 58 cents for fiscal 2024.
With a footprint that spans both Canada and the US, Savers is well-positioned for long-term expansion.
William Blair analyst Dylan Carden initiated coverage with an “Outperform” rating, citing competitive advantages and a favorable macro backdrop.
“We believe that weaker peers, growing acceptance of resale, and the fractured nature of the market all support Savers’ longer-term growth vision,” he wrote in an April note.
The post From Etsy to eBay: secondhand retail stocks poised to gain as tariffs push consumers toward thrifting appeared first on Invezz
