Walmart Wants to Turn Rags Into Riches
Announcing an e-commerce partnership with global fashion resale platform thredUp, Walmart aims to bring in profits through consignment retail, according to the Wall Street Journal.
The company is looking past the coronavirus pandemic, expecting large returns as many smaller retailers close. ThredUp’s 2019 report sees the U.S. resale market reaching $23 billion by 2023. ThredUp also says that secondhand apparel is growing at a pace of 21 times that of the retail apparel market.
Yet, Walmart isn’t thredUp’s only partner, as the platform has already joined forces with Gap, Abercrombie & Fitch, J.C. Penney, and Macy’s. The platform also raised over $300 million in the last ten years, all through private funding.
While the idea of buying used clothing during the pandemic doesn’t seem ideal, Walmart is aiming at a market post-pandemic. A process that holds incentives for both sellers and buyers, secondhand shopping might be on pause right now, but is projected to be a healthy and growing market after the pandemic, according to thredUP research.
Walmart’s bet on resale is low risk in a sense, as a short-term loss would prove better than completely missing a viable market. The partnership will start with 750,000 thredUp pieces, and insights on margins, stock, and non-luxury demand are expected soon.