Department Stores Lose Share to $79 Billion Resale Market as Off-Price Extends Lead
Updated
Updated · Retail Dive · May 15
Department Stores Lose Share to $79 Billion Resale Market as Off-Price Extends Lead
1 articles · Updated · Retail Dive · May 15
Bank of America said department stores are now losing market share not just to mass and off-price chains, but increasingly to apparel resale as value-seeking shoppers shift spending.
Inflation is pushing consumers toward both cheaper channels, but the bank said off-price is the bigger winner because it is gaining share alongside secondhand rather than losing sales to it.
U.S. used-apparel spending per household rose 8% in April and transactions jumped nearly 40%, yet spend per transaction fell 22%, highlighting resale's fragmented model and weaker pricing power.
Off-price and discount apparel outperformed used apparel in eight of the past 12 months, with volume and average unit prices both supporting comparable sales even during the tariff era.
The broader resale market grew nearly four times faster than apparel overall last year and is projected to approach $79 billion by 2030, while miscellaneous store retail sales rose more than 11% in April to $15.7 billion.
Is the secondhand boom a true win for sustainability, or a new frontier for fast-fashion overconsumption?
As resale's value per sale drops, can its growth truly challenge the profitable dominance of off-price retailers?
Squeezed by both resale and off-price, what is the last, best survival strategy for traditional department stores?