Retail at Risk: Analysts Cite Resale Revolution

What’s the future of traditional department stores? According to several retail analysts, the future is here and the sector’s next transformation is being driven by the resale market. Moreover, the impact of resale is broader than previously thought. “This is a threat to most retailers, not only traditional department stores,” Deborah Weinswig, founder and chief executive officer of Coresight Research, said to WWD. Coresight Research released a report on the mainstreaming of apparel resale last week, concurring with the consumer penchant for the “treasure hunt shopping experience.” Dressing in full resale regalia today may mean access to a distinctive wardrobe of desirable brands at value pricing. Weinswig cited the access to limited, one-of-each merchandising strategies as fodder for creating a sense of “urgency” which drives higher conversions and boosts total sales. Today’s resale market is composed of online marketplaces, peer-to-peer sites, physical stores, shops within traditional retail venues, secondhand and consignment stores as well as thrift shops. Rules of Access Redefined  Rotating stock created from newly consigned items, donations, buying hauls and estate sales is what fuels the secondhand market’s storefronts — and its participants’ closets. And in a time of retail store closures and waning foot traffic, to the tune of 5,524 U.S. store-closure announcements

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