Second-hand over new: is fashion retail missing the resale shift?

Last year, it happened to me for the first time. Drawn in by an attractive pair of trousers on a rail next to the entrance, I wandered into a small boutique.

I asked at the counter if they had my size.

“No, we don’t have any other sizes; we only sell second-hand clothing here,” the owner replied, as if it were the most natural thing in the world. Her answer surprised me, as it was the first time I had strolled into a second-hand store without realising it.

Nothing about the shop's presentation on the high street of the small Dutch town of Naarden suggested used clothing at first glance. The merchandise looked new, and the store was cheerfully and casually decorated. There was no sign, inside or out, indicating it was second-hand or pre-loved. There was no trace of musty back rooms or chaotically packed clothing rails.

Across generations

Now, a year later, the experience feels like a precursor to the developments that were to follow. Buying clothes second-hand is increasingly becoming the norm.

When the second-hand platform Vinted topped the ranking of France's largest fashion retailers for the first time last year, it felt like a historic moment. In the home of the world's largest luxury conglomerates, more than 11 percent of clothing purchased is now second-hand, according to surveys by the prestigious French university Institut Français de la Mode. According to a survey by consultancy McKinsey, 59 percent of people worldwide expect to buy second-hand fashion in 2026.

“It is a trend that now spans all generations,” says Theresa Schleicher, a trend researcher specialising in retail. Second-hand is interesting because it is no longer a hype. It is therefore a trend that major fashion chains could embrace more strongly.

“From C&A to Zara, all the big names you know are doing it, but rather half-heartedly and consequently still very much in a niche,” she notes.

Trend recognised

Given its growth, the fashion industry can no longer ignore this market. The second-hand fashion market is currently estimated to be worth between 210 and 220 billion dollars, as a study by recommerce provider Vestiaire Collective and management consultancy Boston Consulting Group shows.

It has reached about one-fifteenth the size of the global market for new apparel, footwear and accessories, which data analytics firm Euromonitor estimates at more than 3.4 trillion dollars. Its value has already surpassed that of the new luxury apparel and footwear market, which is worth 145 billion dollars.

While some clothing retailers like Urban Outfitters or Weekday started out as second-hand shops, the focus in recent decades has been on expanding into the new apparel market. Now, the trend is reversing. In selected Weekday stores, the Swedish fashion group H&M has reintroduced the Curated 2nd Hand concept since 2021. Since 2021, the group's H&M brand has offered pre-loved fashion online, and from 2023, 13 dedicated spaces were added in selected stores such as New York, Stockholm and Amsterdam.

Upon arriving at the H&M store in central Amsterdam, you first walk past rails of the current collection. There is a lot of black, beige and polyester, with no sign of used clothing. Only the floor directory indicates that the section is in the basement. Located behind the returns counter and self-service checkouts, the pre-loved area is presented in a trendy way. The walls are tiled in sea green, and the selection seems bolder in colour and style than on the upper floors.

Circular business models

Although the items are second-hand, they are, on average, priced higher than the current H&M collection. A white viscose blouse with a broderie anglaise collar from the brand Baum & Pferdgarten is priced at 69.99 euros, while a tartan gilet from Barbour costs 199 euros.

“We offer items from various brands, from unbranded vintage pieces to higher-end and well-known denim or accessory brands, always ensuring that a significant portion of the curation consists of H&M and H&M Group brands,” explains Sofia Måhlen, circular business models lead at H&M, via email.

The group has observed that customer needs and expectations are changing, with Gen Z driving this shift. This generation, born between 1995 and 2010, is motivated by getting more for their money, finding unique fashion pieces and shopping more sustainably.

“Studies show that circular business models are growing up to ten times faster than the traditional fashion market, and we see great potential in our pre-loved offering,” says Måhlen. “In the near future, we plan to expand H&M Pre-loved to several new cities in Europe and the US.”

A small part

In addition to H&M and Weekday, the group also offers used clothing through its upmarket brand Arket. Arket operates its own online shop where customers can upload and sell their worn items. Hennes & Mauritz also holds an approximately 80 percent stake in the second-hand online retailer Sellpy.

The share of revenue from the resale business has more than doubled since 2022, the textile retailer stated upon request. Revenue from the second-hand business was 1.8 billion Swedish kronor in 2025, which corresponds to 0.8 percent of the total revenue of 228.3 billion Swedish kronor.

“Although this represents only a small part of the overall business, we believe we are at or above the industry average compared to companies that offer resale alongside their conventional range,” says Måhlen.

The example of Hennes & Mauritz shows that it is difficult for companies focused on selling new goods to participate in the rapid growth of the resale market. For instance, the pre-loved offering in the stores of the group's brand Cos was discontinued at the end of last year. The reason given was that the existing programme had not achieved the desired impact or customer experience, the group said in a statement.

Finding the right answers

This response is surprising, as the second-hand range at Cos blended seamlessly with the presentation of the current collection in-store. In contrast, the current second-hand department at H&M seems less cohesive within the overall concept. The unique, and not inexpensive, pieces curated with the help of Sellpy did not quite fit with the affordable designs on the rails one floor above, where a pair of jeans can be bought for as little as 29.99 euros.

While established fashion companies are still searching for suitable responses to the second-hand boom within their business models, others are already seizing the opportunities. Not far from the H&M store with its pre-loved offering in central Amsterdam, several second-hand stores have already opened. On one storefront, the sign of the previous tenant, the Parisian brand Agnès B., still hangs on the facade.

People are buying used clothing not only online through marketplaces like industry leader Vinted, now valued at eight billion euros, but also in brick and mortar stores. Between January 2013 and July 2025, for example, the number of second-hand shops in the Netherlands increased by 40 percent, from 516 to 723, according to figures from the Dutch Chamber of Commerce.

An alternative to new products

Globally, the second-hand market is growing by 10 percent annually, three times faster than the market for new goods, a study by Vestiaire Collective shows. Second-hand purchasing is becoming a genuine alternative. Nine out of ten purchases replace the acquisition of a new product, as a 2022 study by the second-hand marketplace Depop found among its own customers. A Vinted survey showed that 88 percent of the approximately 25,000 members surveyed check the platform's offerings before considering the purchase of a new item.

“Everyone who sells new goods is aware of this, because the second-hand market has simply become so large that it is eating into their growth,” says Mikko Siukosaari in an interview. He is the co-founder and chief commercial officer of the Finnish company Ninyes. It offers resale as a service for brands and retailers who want to be active in the market but do not want to operate their own shop and the associated logistics.

Beyond the savings and environmental arguments, many find the shopping experience offered by the new generation of curated vintage stores and Vinted's algorithms more exciting than the uniformity in the assortments of large fashion chains. Recommerce is no longer a digital flea market or a bargain-bin store for deal hunters. It has evolved into a source of inspiration and a primary entry point into the world of brands.

Brands remain cautious

The fast-growing market is dominated by resale platforms such as Vestiaire Collective, The RealReal and Vinted. Over 56 percent of people who bought used clothing in 2024 did so online. Of these, only 11 percent of respondents bought directly from a brand. This is according to a report prepared by analytics firm GlobalData for the US resale company ThredUp.

From 2021 to 2023, the number of brands selling used products of their own brand online to US customers increased from 36 to 163. Since then, however, this number has stagnated, with 164 brands currently operating a resale programme in the US. Why is it so difficult for brands to build their own resale business despite the growing market?

Brands remain cautious because they fear that second-hand strategies could cannibalise the sale of new goods. One in five executives cites this as a deterrent, according to a McKinsey survey of fashion executives. Other common hurdles include quality control and product authentication (cited by 34 percent of respondents) and a lack of in-house expertise (31 percent).

“One thing we have learned, especially from working with medium-sized brands, is that you have to be a really big brand to run a viable resale solution that only accepts your own branded items,” says Siukosaari.

New point of entry

When fashion retailers and brands began testing second-hand programmes a few years ago, the focus was often on the event character of a special pop-up or on making a statement about sustainability.

The apparel industry is struggling with an image problem, given the vast quantities of clothing that are disposed of year after year. In the EU alone, more than five million tonnes of clothing and footwear are discarded annually. This amounts to about 12 kilograms per person, according to data from the European Environment Agency.

Now, however, the motivations within the fashion industry are beginning to change. The second-hand market is increasingly at the beginning of the purchasing process; it determines how a brand is perceived.

“Given the growing demand for resale and increased price sensitivity, a resale presence is becoming increasingly essential for brands,” the McKinsey study states.

A survey of more than 3,000 US customers shows that 47 percent consider the resale value of an item when purchasing a new one, according to a report for ThredUp by GlobalData.

Furthermore, 40 percent of US consumers stated that they would rather buy a second-hand item from a brand first before deciding to purchase a new item for the first time, an increase of 17 percentage points compared to 2023.

Without producing more

The stagnant business with new goods is another reason for the growing appeal of the second-hand market. The market for apparel, footwear and accessories is projected to grow by 1.9 percent to 3.45 trillion dollars in 2026, according to Euromonitor estimates. The value of the second-hand market could reach up to 360 billion dollars by 2030, estimates the Boston Consulting Group.

Different approaches have recently emerged, according to the consultancy's observations. The model with the highest investment, but also the greatest control, remains building a resale business on a company's own offline and online channels. This path has proven challenging, however, given the complex logistics involved.

Therefore, fashion brands are collaborating with resale-as-a-service providers to sell authenticated goods via co-branded websites. Curated pop-ups or take-back campaigns offer more flexible pilot models, according to the Boston Consulting Group.

Following a second-hand pop-up in the Berlin Conscious Store of Düsseldorf-based fashion retailer Peek & Cloppenburg, Ninyes now operates a permanent shop-in-shop there. In Helsinki, the company offers used kidswear at the Stockmann department store and organises second-hand sales in the store of the kidswear brand Reima.

A paradigm shift

Brands that collaborate with Ninyes on resale receive an additional 4 to 6 percent of their usual revenue from the sale of second-hand items, an income stream they did not have before.

The chief commercial officer estimates that there are around 12,000 relevant fashion brands in Europe suitable for collaboration, which have a second-hand market and an annual turnover of at least half a million euros.

“In addition to their existing revenue, they are now generating new income from the second-hand business, income they did not have before,” says Siukosaari.

“Our idea is that as a brand, you could actually stop producing more and more and keep production at the same level. You could then grow through the circular economy by building a second-hand business.”

This idea seems plausible given the mountains of clothing waste and the shift in shopping mentality. It would, however, amount to almost a paradigm shift in the apparel industry, which is by no means a given. This explains precisely why established fashion companies are struggling and why resale is dominated primarily by online players.

A missed opportunity?

“A classic fashion company, like any retail business, ultimately focuses on volume. They purchase large quantities from regions like China, Vietnam or Eastern Europe, get them quite cheaply and then release them as quickly as possible in line with current trends,” says Schleicher. “That is how the system has worked until now, but the major players are noticing it is becoming increasingly difficult.”

The sales volume in the second-hand market is still small compared to the linear mass market. Given the growing demand, however, the potential is significant. Asia has become the largest and fastest-growing market, with more than 70 percent of Chinese customers planning to buy used clothing in 2026.

The potential supply of second-hand goods is also huge. “Around 50 percent of what is in our wardrobes is not used at all,” says Siukosaari. Only a small fraction of it actually ends up on the second-hand market.

“Garments are often bought quickly but are also quickly discarded, yet they still have a trendiness, a relevance,” says Schleicher about items that are cleared out after one or two seasons. “Not returning them to the cycle, even though retailers could profit from it and it could function more sustainably, is a missed opportunity.”