Add CategoryUS department stores have seen their share of retail slip from 14.5 per cent in 1985 to about 2.9 per cent in 2021, primarily due to the rise of online shopping, according to Global Data. At the same time, data from US-based resale giant ThredUp shows the resale market grew 21 times faster than retail as a whole from 2016 to 2019.
This has led legacy retailers – long focused on offering constant newness – to actively seek out last season’s, or even last decade’s, wares.
In 2020, American department store Nordstrom experimented with selling second-hand fashion through the See You Tomorrow pop-up in its New York City flagship store, and British department store Selfridges launched a permanent online resale vertical called Resellfridges. Selfridges also offers second-hand items in its London flagship store through a partnership with online resale platform Vestiaire Collective.
In September of this year, J.Crew Group’s Madewell opened A Circular Store in Brooklyn, where it offers pre-loved Madewell clothes through a partnership with ThredUp. The pop-up is an extension of Madewell’s Forever website, which launched in July, where it offers used jeans.
And just last week, Adidas announced it will start accepting used clothing, shoes and accessories from customers to be resold, donated or reused through a partnership with ThredUp.
“We will see the popularity of resale and circular fashion models continue to evolve and grow, with many brands adopting their own variations of the model,” Bridget Veals, David Jones’ general manager of womenswear, footwear and accessories, told Inside Retail.
Early days
With so much momentum in the resale industry, Veals is looking at a number of different opportunities to expand the range of pre-owned items available at David Jones over the next 12 months.
Given the challenge of sourcing products that are suitable for resale, this will likely involve partnerships with more third-party resellers like Blue Spinach, which specialise in curating pre-owned products and verifying their condition and authenticity.
“It’s still early days, for us and for resale in the industry, but we do plan to ensure that if this adds value to our customer experience and their desire to keep great fashion and products in circulation, we will take it to all states and organically grow,” Veals said.
While the rise of resale is generally credited to younger shoppers seeking to minimise their environmental impact, Veals expects David Jones’ pre-owned offering to appeal to many of its existing customers, who are not necessarily part of Gen Z.
“It is a great platform to educate our current customers on another way they can access their favourite brands and we no doubt will attract new customers who regularly purchase pre-loved items,” she said.
“It also provides a more accessible platform for customers to buy into the luxury category. Blue Spinach has a dedicated fanbase who will no doubt be eager to keep an eye on the exclusive pieces at David Jones.”
Focus on sustainability
The partnership with Blue Spinach is part of David Jones’ Mindfully Made initiative, which makes it easier for customers to find and buy sustainable brands, including those that support local manufacturing, use eco-friendly materials and are ethically made.
Last year, the retailer teamed up with leading online fashion rental provider GlamCorner to offer designer dresses for rent in its Elizabeth Street flagship store in Sydney.
“Consumers are increasingly interested in sustainability and we are dedicated to evolving our practices and educating customers who are interested to learn more about sustainability, one of the ways we’re doing that is through our Mindfully Made platform,” Veals said.
The retailer will launch a dedicated space for resale in its Sydney flagship store next year, and customers will have access to the same 30-day returns policy for pre-owned items as they do for designer handbags, accessories and shoes.