Thrifting: It's Come a Long Way: A Look into the Circular Economy

Thrift stores were first established in the United States in the late 1800’s.  The onset of mass production brought the cost of clothing down and the perception of clothing as disposable began to take hold. Before then used and worn clothing would be passed down to other people or repurposed into other useful items by their owners conserving the value of the fabric. It was not a sign of frugality, but of nostalgia, or a sense of romanticism. Having such fine textiles passed down was a nod to generational wealth, status, and class. 

The increased immigrant population and those not benefiting from the new wealth of the changing times were served by the emergence of used clothing and goods stores at the time of the Industrial Revolution. The rise of consumer consumption fed the supply of these shops. Often called “junk shops”, they needed a marketing makeover to survive by the 1950’s (from junk shops to thrift shops and consignment shops).  It was Christian ministries, like the Salvation Army, that first saw the fundraising and business potential of thrift shops.

Today’s vintage finds don’t carry the stigma that once attached itself to the secondhand clothing pedaled from push carts in cities usually by Jewish immigrants.  No longer just for the financially challenged and frugal, thrifting has shifted to treasure hunts for valuable vintage finds.

Beacon's Closet, Brooklyn  

Vintage  shopping  in  NYC is all over the place   What Goes Around Comes Around

 housingworks.org

The Real Real    Allegra Vintij                      Buffalo Exchange

No Standing NYC

Today's Landscape of Thrifting Stores

The varied landscape of secondhand stores today in the apparel market includes mission driven non-profits such as Deseret Industries, The Salvation Army, and Housing Works to name a few. Profit models with 500 stores across the U.S. like Plato’s Closet prove thrifting is thriving.  Other chains like Value Village with 300 locations, and Buffalo Exchange with 40 stores are well established. High-end luxury consignment stores such as The RealReal have both an online presence and brick and mortar locations. New York City touts 368 vintage/thrift stores as of March 30, 2025, according to NYC Vintage Map. Ebay reported in their 2024 Recommerce Report that between 2023 and 2024 global sales of apparel and accessories in the thrifted category grew over 400% (driven by Millennials and Gen Z).  Apparel alone accounts for 48% of secondhand purchases on Ebay, according to their report.

Thrifting has become more about sustainability, waste reduction, and individuality. These are the driving factors customers are consistently citing across the board in market research reports. 

The Pulse of the Circular Economy

In the last year, the secondhand apparel market in the U.S. has seen growth over 10%, in contrast to the 3% decline overall in retail sales in 2024.  Analysts from Global Data are projecting the resale market overall (including non-apparel items) to double in growth within the next five years to a valuation over $290 billion dollars.

More than half of resale shoppers polled by one of the largest secondhand merchandise platforms reported that they enjoy thrifting as a recreational activity.  Shoppers get an emotional reward of joy, fulfillment, and pride associated with scoring a treasure in the thrifting marketplace.  

Technology is giving a boost to the secondhand market by expanding their reach, improving listings and search functionality, and enhancing user experiences on selling platforms, especially through social commerce.  Advancements in AI technology are improving efficiency, personalization, and authentication.  AI is achieving this by automated product listings, recommendation engines that analyze user behavior, purchase history and preferences, forecasting for inventory, and improvements in search functionality to make shopping more intuitive. Virtual assistants powered by AI enhance the customer experience online.  High-end luxury resellers can use AI to detect counterfeits and authenticate items.  Innovations in AI are making the resale clothing industry more accessible, efficient, and appealing to both buyers and sellers.

Retailers Have Embraced the Resale Market

Perhaps no one does it better than Ralph Lauren Vintage, launched in 2024. One of the biggest leaders in the fashion industry, the Ralph Lauren brand, embraces the resale market.  In April 2022, a time that affected many retailers’ inventories, the brand dropped a one-of-a-kind vintage and upcycled mini collection.  They continue to engage in the circular economy by making a commitment to their customers on their website:

“Through our Live On promise, we will extend the life of our products, old and new, by enabling ways to rent, repair, and recirculate them—while also making investments to help advance scalable innovation for a circular economy across the industry.

By 2025, five of our iconic products will be Cradle to Cradle Certified®

By 2025, we will offer high-quality products made with 100% recycled cotton

By 2025, we will set and implement circular principles into our design and development process

By 2025, we will connect consumers with ways to rent, repair, and recirculate our products in select top cities

By 2025, we will invest in scaling regenerative practices and innovative technologies that help move the circular economy forward”

Levi’s offers a buy-back program, Levi’s SecondHand, where customers can trade in their used denim for gift cards.  The used denim items are cleaned and resold at discounted prices.   Patagonia has a similar program called Patagonia Worn Wear which gives store credit to customers in exchange for their used goods.  The North Face Renewed program focuses on refurbishing and reselling returned, defective or worn products.  The North Face’s program goal is to keep their products out of landfills and offer more affordable options to their customers.  Many other brands are following suit with their own similar programs.

Recycled yarns, sustainable sourcing and buy-back programs are shifting the manufacturing of new garments answering and alleviating some of the concerns that drove part of the secondhand market.  It remains to be seen how much this will offset some of the demand for thrifted goods.

Determining a Fair Price for Resale Apparel

Anyone who regularly scopes out the secondhand market can tell you that prices have been rising. Rising costs could be a reflection of increased demand and inflation. Does it also suggest that the supply is becoming more limited? How many times can a vintage piece change hands before the condition starts to degrade?  Fast fashion has flooded the apparel market for years now, and high-end fashion has been leaning heavily on the outlandish. Retailers have been supplying the demand for more casual wear since at least the early 2010’s when dress codes relaxed in the workplace and casual became the norm thanks to the rise of the tech company culture from Silicon Valley.  These facts along with leading brands pulling back their own used goods to repair/resell or upsell leave a valid question as to the desirability and quality of the future apparel supply in the secondhand marketplace. 

It is a challenge to determine a fair price for apparel in the secondhand market for better goods with so many factors simultaneously at work. No one is going to argue whether a top should be $3 or $5.  If you’re considering a more unique or luxury brand item the exclusiveness of the find will certainly drive the price. "Vintage T-shirt Heads" have been known to pay a few thousand dollars for some luxury brand vintage t-shirts (defunkd).

A good starting point is to consider intrinsic value versus perceived value.  The value of the fabric, workmanship, and condition of the garment are tangible factors to start with and determine the intrinsic value.  The perceived value is what you add to that for branding, uniqueness, exclusivity, emotional response, and to be the one who scored that rare find.  Take into account the original price of the garment and anything south of 70% less is a reasonable base before all other factors.

AI tools can help determine a fair price for secondhand goods.  Although most AI tools currently available are for sellers, there are some useful ways buyers can use AI.  Encore is an AI-powered search assistant that helps users find secondhand and vintage items across multiple resale platforms.  It can be used to compare prices across different listings, although its main function is to streamline the search process.

shop encore.ai

A fair price strikes a balance between the intrinsic and perceived value of the item.  Ultimately, when that elusive treasure is found, the price will be determined by answering the question, “What’s it worth to you?”