Walmart taps the $ 32 billion second-hand clothing market
The retail giant Walmart
The breakdown you need to know:
CultureBanx noted that you know it’s a new day for Walmart and trendy online thrift stores to join forces, especially when you consider that the Bureau of Labor Statistics has found that black people spend around 3% of their household expenses. in clothes, this could be a great way to save some money and stay in style. Not to mention that the resale market is expected to grow from $ 32 billion this year to $ 51 billion by 2023, according to research from ThredUp and GlobalData Retail.
ThredUp presents itself as the largest online thrift store and offers more than 750,000 items in 2,000 brands. Customers will get free shipping from Walmart as long as they spend $ 35 or more, and items can be returned to nearby stores.
Walmart’s US ecommerce business manager told CNBC, “We absolutely see this as an opportunity to take over more of our customers’ closets.” The company declined to provide the financial terms of the ThredUp deal.
Beyond the cupboards of the customers, it is the profit which waits to be realized. Walmart can help increase the profitability of its e-commerce business, which has not been profitable so far. The company’s e-commerce sales grew 74% in the first quarter of 2020, during the coronavirus pandemic. It is possible that second-hand fashion items could help the retail giant generate better returns. Walmart shares have risen nearly 5% year-to-date.
Thrift stores are no longer seen as a place to shop for low-income people, they are attracting more middle-class shoppers looking for vintage and unique items. Walmart is looking for a way to better serve this demographic with its e-commerce platform. For decades, the company dominated the grocery industry, but still lags behind despite several valiant efforts. They previously acquired plus size womenswear company Eloquii, as well as ModCloth and menswear company Bonobos. ThredUp has partnerships with other retailers, including Gap