Target Launches New Used Clothing Program – RetailWire
April 12, 2022
Target’s sells used clothing through a new relationship with ThredUP.
The retailer has had its own page on ThredUP since late March, with a selection of used clothing curated by its team from the resale platform’s range CNBC. The selection consists of clothing from Target’s own brands and from previous designer collaborations, as well as some luxury clothing items not usually found at Target. There are about 400,000 total on the Target ThredUP page with discounts of up to 90 percent.
Target has already worked with ThredUP. The earlier partnership in 2015 consisted of a trial program that allowed buyers to receive Target credit for items resold through ThredUP.
More and more large retailers are selling second-hand goods as it addresses both consumer concerns about sustainability and their desire for affordability.
Walmart, for example, went under Relationship with ThredUP in 2020. The retailer began listing 750,000 used, “gently used” items on the marketplace.
Apparel-only retailers have also entered the resale market, even launching their own services to avoid losing sales to the big burgeoning online marketplaces.
In late 2021, Urban Outfitters launched an online second-hand marketplace called Nuuly Thrift The Wall Street Journal. The marketplace allows Urban Outfitters to earn a commission on resold clothing that the chain misses out on if their products are resold on Poshmark or ThredUP.
ThreadUP’s “Resale Report 2021‘ put annual sales of curated second-hand clothing at $36 billion and predicted that figure would grow to $77 billion within five years. That would be 11 times faster growth than apparel retail as a whole.
In addition to the perceived green credentials and cost savings, marketplaces like ThredUP have received a boost from the pandemic. ThredUP has seen an influx of products thanks to people clearing out their closets and reassessing their clothing needs during the pandemic The street.
The trend is also catching on outside of clothing.
IKEAfor example, recently expanded its buyback/resell initiative to all of its 37 US stores after a successful pilot last summer.
DISCUSSION QUESTIONS: Do you see Target being successful in reselling through its ThredUp relationship? How likely is it that Target will start selling used products in its own stores or on its own online marketplace in the future?
“Considering that Target supports a price-conscious buyer and is already having such success with Gen Z, this path makes sense and should be very successful.”