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Secondhand Clothing Is Long on Hype, Short on Impact for Mall Retailers


The department-store industry has been wading deeper into secondhand waters for a while now. Nordstrom (NYSE: JWN) embraced the idea of dealing in used clothing in mid-2019, partnering with Rent the Runway by becoming a pickup and drop-off point for the apparel-renting outfit. In August, Macy's (NYSE: M) added select merchandise from used clothing name thredUP to its inventory at 40 of its stores, as part of a pilot program. J.C. Penney (NYSE: JCP) unveiled a similar partnership just a few days later, releasing plans to open thredUP shops in 30 of its stores. Then just last week, Nordstrom launched its See You Tomorrow shop at its flagship New York City locale. See You Tomorrow will resell curated third-party items, as well as Nordstrom inventory that can't quite be sold as new merchandise in stores.

This evolution of the secondhand-clothing business was inevitable. The entry of chain stores into the business, once limited to thrift stores and consignment shops, offers used apparel an enormous sales platform.

If thredUP's outlook is anywhere close to being on target, though, secondhand apparel won't end the "retail apocalypse" that's hitting department stores particularly hard. It's just not big enough. Indeed, the chain stores may be surprised just how much they end up cannibalizing themselves by adding other shopping options to the mix.

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Source Fool.com

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