Retail giant Target
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CultureBanx noted that this was Target’s second time around the block with ThredUp after an earlier partnership in 2015. Considering that the Bureau of Labor Statistics found that black people spend about 3% of spending of their household in clothes, it’s no surprise that a trendy online thrift store is once again teaming up with a major retailer to help customers save money and stay fashionable . Not to mention that the resale market should reach $51 billion by 2023according to research by ThredUp and GlobalData Retail.
ThredUp markets itself as the largest online thrift store and offers over 750,000 items across 2,000 brands. Customers will have access to 400,000 women’s and children’s items Target’s own brands as well as selected national and premium brands from ThredUp’s own assortment.
In March, ThredUp CEO James Reinhart told analysts that its list of RaaS customers had grown to 28, according to Seeking Alpha. The company’s Raas platform grew its customer list by more than 30% in 2021. A McKinsey report said the used market is expected to increase by 10% to 15% over the next decade.
Target can help increase the profitability of its e-commerce business, which has been very profitable so far, even further. The whole company digital sales grew 20.8% last year. It’s possible that second-hand fashion items could help the retail giant generate better returns. Target shares are down more than 5% year-to-date.
Thrift stores are no longer seen as a place to shop for low-income people, they appeal more to middle-class consumers looking for vintage and unique items. Target is looking for a way to better serve this demographic with its e-commerce platform.
Many young fashionistas increasingly see second-hand goods as a way to find a bargain and limit consumption in the interest of sustainability. For Target, it’s a way to explore how to better serve customers, including what products to carry and how to deliver value, while pursuing its sustainability goals, the company told Retail Dive.