The "Great Thrift Shift": How COVID-19 Reshaped Secondhand Shopping and Sent Prices Soaring

The retail landscape underwent a dramatic and unexpected evolution during the COVID-19 pandemic, with thrift shopping emerging as a prominent example of this transformation. Once considered a niche activity, the secondhand market has rapidly become a burgeoning mainstream force. The pandemic did not merely disrupt traditional retail; it fundamentally reshaped consumer habits and significantly accelerated existing trends, particularly within the secondhand sector.

This period of global uncertainty and forced introspection created a fertile ground for the secondhand economy to flourish in unexpected ways. Retailers were compelled to innovate and "think outside the box to reimagine the in-store shopping experience in this new reality". This critical period pushed nascent shifts in digital adoption, sustainability consciousness, and the search for value into overdrive, making them mainstream much faster than they would have otherwise. The transformations observed in the thrift market are therefore not temporary anomalies but deeply rooted, long-lasting shifts in consumer behavior and retail strategy, signaling that this "new reality" is here to stay.

My assay will explore the multifaceted impact of the pandemic, detailing the initial struggles of physical stores, the explosive growth of online platforms, profound shifts in consumer motivations driven by both economic necessity and a growing focus on sustainability, and the noticeable rise in prices across the sector.

The Initial Shock: Brick-and-Mortar Under Pressure

The onset of the COVID-19 pandemic brought immediate and dramatic effects to traditional retail. Widespread staff furloughs and the temporary closure of entire store footprints began in March 2020, as non-essential retailers, including many thrift stores, were forced to shut down their physical operations.

Social distancing measures and stay-at-home orders led to a significant decrease in consumer foot traffic and donor participation. Organizations like Goodwill reported "significant revenue loss as a result of COVID-19" due to these store closures. In some regions, Goodwill experienced a substantial 38% drop in donations, with over half of its donation centers closed. Similarly, The Salvation Army had to temporarily pause its retail operations and lay off employees during mandatory shutdowns.

Thrift stores also encountered unique challenges concerning donations. Even when physical locations were closed, people would often drop off items outside. These unattended donations became "pain-points," frequently "picked through, overnight," or "attacked by weather". While a phenomenon of "quarantine clean-outs" did lead to a temporary surge in physical donations when stores eventually reopened, resulting in some stores being "filled with inventory", the overall supply chain for donations became disrupted and less predictable. This fluctuating and increasingly diverted supply of quality goods presents a significant ongoing challenge for brick-and-mortar thrift stores. It pressures them to find new sourcing methods or adjust their pricing strategies to compensate for a potentially less consistent or lower-value incoming inventory, further contributing to the overall rise in prices for desirable items.

In response to the unprecedented environment, some traditional retailers adapted by rapidly implementing new strategies. Options like Buy-Online-Pickup-In-Store (BOPIS), Buy-Online-Ship-to-Store (BOSS), curbside pickup, and contactless shopping gained significant traction. These methods became particularly appealing due to taxed supply chains and delayed home shipping from conventional retailers. Consumers also demonstrated a preference for supporting local, smaller businesses, which were generally quieter and easier to navigate for social distancing purposes.

The Digital Boom: Online Thrifting Takes Center Stage

In stark contrast to the struggles faced by physical stores, online resale platforms experienced a "meteoric rise to the top of the internet" during the pandemic. This sector largely "withstood the economic downturn brought about by the crisis" and, in many cases, thrived, showcasing remarkable growth.

The data unequivocally illustrates this digital boom:

• Depop reported a 163% year-over-year increase in new app sign-ups, a 200% year-over-year traffic growth in the US, and a 300% year-over-year increase in items sold since April 1, 2025.

• Vestiaire Collective saw orders up 54% in early May compared to pre-pandemic February averages, with daily new inventory deposits increasing from approximately 10,000 to 13,000 pieces. The company also experienced its biggest sales day ever in May 2025.

• ThredUp reported increased traffic and sales, with specific categories like leggings seeing a 40% sales increase and blouses a 30% increase compared to February.

• General E-commerce sales as a percentage of total retail sales (excluding automotive) reached roughly 22% as of Q4 last year, up from approximately 15% in Q4 2019. Overall e-commerce sales increased by $244.2 billion, or 43%, in 2020, the first year of the pandemic.

This period also marked a significant shift in consumer perception, with over 75% of people surveyed through Poshmark (a combination of users and non-users) expressing comfort with buying used clothing from individuals online.

Online Resale Platform Growth Metrics During COVID-19 (2020)

 

Generation Z emerged as a primary driver of this "new era of thrifting" , effectively "leading the 'second-hand storm'". Statistics from Poshmark and ThredUp in 2020 indicate that, on average, 16.5% of a Gen Z individual's closet consists of thrifted or second-hand clothes, a higher proportion than any preceding generation. Over 90% of Gen Z individuals are open to buying used fashion, and 80% believe there is no stigma surrounding thrifted finds. This demographic is buying pre-owned apparel 2.5 times faster than other age groups 9 and often acts as platform ambassadors. By 2024, over 68% of Gen Z and Millennials had purchased secondhand apparel.

The rapid growth of online platforms coincided with Gen Z's strong adoption of thrifting. This generation is known for seeking unique items and rejecting traditional fashion stigmas. Social media platforms like Instagram and TikTok became crucial catalysts, making thrifting "social media friendly" and highly accessible and appealing to younger generations. The influence of social media is particularly significant, as it can make outfits "obsolete" more quickly once posted, thereby increasing the "need to circulate these outfits". This suggests that online thrifting is not merely a convenient alternative to physical stores; it is deeply interwoven with a cultural shift towards faster fashion consumption cycles, a desire for individual expression through unique finds, and a rejection of traditional fashion norms, all facilitated and amplified by digital platforms. This positions online resale as a critical component of the modern fashion ecosystem, responding to both economic and social pressures.

Shifting Habits: Why Consumers Embraced Secondhand

The pandemic fundamentally altered consumer behavior, prompting a widespread embrace of secondhand goods. This shift was driven by a powerful combination of economic necessity and a heightened awareness of sustainability.

The economic uncertainty caused by the pandemic, including a "sharp rise in unemployment" and "reduced consumer activity", played a significant role. With millions dislocated from jobs and many experiencing "less disposable income", buying second-hand became a crucial "economical choice". Consumers turned to thrift stores to "snag a bargain" as the cost of new items skyrocketed due to inflation. Even "high-wage-earners were selling their prized apparel on resale websites for a sense of financial security" during the uncertain times.

Simultaneously, the pandemic fostered a heightened awareness of sustainability. Consumers became "increasingly cognizant of sustainability" and began to realize the "bad sides of fast fashion". Buying resale is now widely seen as a "first step towards circular economy" and a way to "extend the lifespan of their fashion pieces". This eco-friendly motivation was particularly strong among Gen Z, with 37% moving towards secondhand for a "greener shopping experience". The dual motivation, encompassing both financial prudence due to economic hardship and a heightened sense of environmental responsibility, brought these two powerful drivers into sharper, more widespread focus. This combined influence is stronger than either factor alone, suggesting a more resilient and continuously growing market for secondhand goods. Even as immediate economic pressures ease, the ingrained sustainability mindset, particularly among younger generations, will likely ensure continued growth for the secondhand market, solidifying its position as a permanent and significant retail channel rather than a temporary coping mechanism.

Beyond the practical and ethical motivations, the enduring appeal of thrifting lies in the "mystery of the hunt" and the ability to find unique items or "treasures". This provides an attractive alternative to fast fashion's rapid obsolescence, allowing for personal expression and individuality.

The pandemic also fueled a significant rise in individual sellers. Many, facing economic uncertainty, turned to selling used items online for "additional income". An eBay survey revealed that almost 75% of consumer sellers started selling secondhand goods in 2020 for supplemental income, with approximately 14% specifically turning to ecommerce due to job loss from COVID-19. A staggering 85% of these sellers found items to sell from within their own households, from things they no longer used. This underscores the widespread "quarantine clean-out" phenomenon that simultaneously provided supply for online platforms. For Gen-Z, 40% earned up to $4,000, and 10% up to $10,000 from reselling on Poshmark, with 22% even making it a full-time job.

The Price of Popularity: Understanding Rising Costs

The noticeable rise in thrift store prices post-pandemic is a complex issue driven by multiple interconnected factors, moving beyond a simplistic blame on resellers to encompass broader market dynamics and operational realities.

The surge in popularity post-pandemic led to "increased foot traffic" in physical stores and "higher demand for limited inventory". The influx of both experienced and new thrift shoppers created "greater competition for high-quality items," allowing stores to adjust prices upward. This shift indicates a fundamental re-evaluation of secondhand goods' value. They are no longer simply cheap alternatives but are recognized for their intrinsic worth (brand, vintage, uniqueness, sustainability) and are priced accordingly, aligning with broader market trends. This means thrift shopping is evolving from a purely low-cost option to a value-driven segment of the broader retail market. While prices are rising, consumers are still willing to pay because the perceived value justifies it, even if every item is no longer a "steal."

Thrift stores, like other retailers, faced significant increases in operational costs. This includes an average 10% annual increase in retail space rent, particularly impacting urban thrift stores, higher labor wages due to minimum wage adjustments and steady growth in retail wages, and increased utility costs. These mounting financial pressures leave stores "with little choice but to raise prices".

The emergence of online resale apps (Poshmark, Depop, ThredUp) introduced new challenges for traditional brick-and-mortar thrift stores. These platforms encouraged individuals to sell their items online rather than simply donating them, leading to "reduced inventory" for physical thrift stores and compelling them to increase prices on remaining goods to maintain profitability. Some thrift stores now even look up online listing prices (e.g., eBay) to inform their own pricing for "vintage treasures".

The glamorization of thrift shopping by celebrities and social media influencers fueled the popularity of vintage items, making retro clothing and accessories highly desirable. Genuine vintage items are limited in supply, which naturally drives up their value, and thrift stores recognize this scarcity, pricing such items accordingly. While often blamed, resellers are not the primary drivers of price increases; rather, their activity and the visibility of their sales can give stores an idea of what items are potentially worth more. The underlying issue is broader market dynamics and operational costs, not solely reseller behavior.

Broader economic inflation, affecting all sectors, also impacts thrift stores. Rising costs for transportation, storage, and utilities trickle down to consumers. Furthermore, inflationary rates have pushed up the prices of new goods, which indirectly influences the perceived value and cost of secondhand items.

For non-profit thrift stores like Goodwill and Salvation Army, revenue generated from sales supports various community programs (e.g., job training, housing assistance). Therefore, rising prices can also correspond with the necessity to sustain or expand these crucial social services (although they do receive State and/or Federal grants for offering these services..).

The Supply Side Story: Donations, Decluttering, and Digital Sales

The supply of used goods to thrift stores experienced a dynamic and complex shift during the pandemic. In the initial lockdown phases, traditional donation channels faced severe disruptions. Goodwill of the Columbia Willamette, for example, saw donations down 38% and had over half its donation centers closed. Broader indicators, such as blood collection activities, also decreased significantly due to social distancing measures and cancelled drives, reflecting a general impact on donation-based operations.

As people spent more time at home, a widespread "quarantine clean-out frenzy" occurred. Over 50% more individuals reported cleaning out their closets and either donating or selling clothes compared to pre-COVID times. This led to an "influx of clean out kits and first-time sellers" for online platforms like ThredUp. When physical stores eventually reopened, some experienced a temporary surge in donations, leading to situations where they were "filled with inventory".

However, a significant and lasting shift occurred where individuals, facing economic uncertainty, increasingly opted to sell items from their own households rather than simply donating them. An eBay survey found that almost 75% of consumer sellers started selling secondhand goods in 2020 for additional income, with 14% specifically due to job loss from COVID-19. A staggering 85% of these sellers found items to sell from things they no longer used at home. This direct-to-consumer selling model significantly impacts the inventory available to traditional brick-and-mortar thrift stores.

The pandemic-induced "clean-out" initially provided a temporary boost in donations for physical stores. However, the parallel and significant rise of individual online selling for income suggests that a substantial portion of these decluttered items, especially those with higher resale value, were diverted away from traditional donation bins. This means the overall volume of used goods might have increased, but the quality and desirability of items reaching traditional thrift stores could have decreased, as individuals captured more of the value themselves through online sales. This implies a potential long-term challenge for traditional thrift stores in maintaining a consistent supply of high-quality, desirable inventory. This re-routing of supply further pressures their pricing strategies, potentially altering their product mix to focus more on lower-value, higher-volume items, and necessitates new sourcing models for brick-and-mortar operations. Additionally, unattended donations left outside closed stores posed issues of damage and theft, adding another layer of challenge for traditional thrift operations.

Beyond the Pandemic: The Future of Resale

The secondhand clothing industry is projected to continue its robust growth, expected to grow "about three times faster than the overall apparel market". The U.S. secondhand apparel market grew by 14% in 2024 and is projected to reach $74 billion by 2029. Globally, the secondhand market is expected to hit $367 billion by 2029, growing at a 10% compound annual growth rate. Resale is clearly no longer a passing trend but a fundamental "industry shift".

Projected Growth of the U.S. Secondhand Apparel Market (2024-2029)

 

The consistent projections of substantial, sustained growth for the secondhand market, significantly outpacing traditional retail, indicate a systemic, industry-wide shift towards a circular economy model in fashion. This growth is not solely driven by individual consumer behavior but also by major apparel brands actively integrating resale into their core business models. The pandemic served to highlight the "bad sides of fast fashion" and solidify consumer demand for sustainability. This means the future of fashion is undeniably becoming more circular, implying a reduced reliance on new production, a greater emphasis on extending garment lifecycles, and a redefinition of "ownership" in fashion. Traditional retailers who fail to adapt to this fundamental shift will likely face increasing pressure and obsolescence, while those embracing resale and circular models will find new avenues for growth, brand loyalty, and competitive advantage. The pandemic has cemented resale as a strategic imperative, not just a trend.

Resale fashion has transitioned into a "dominant industry" and is projected to surpass fast fashion by 2030. The stigma traditionally associated with buying used clothing has significantly diminished, particularly among younger generations who champion it.

Major apparel brands have recognized this profound change in consumer behavior. They are actively "reshaping their business model and jumping into the second-hand fashion", entering global partnerships with re-commerce chains, and launching their own branded re-commerce websites or buyback programs. Brands are increasingly advised to position resale as a "strategic pillar" rather than a mere side project.

Technology, particularly artificial intelligence (AI), is poised to play an increasingly crucial role in the future of resale. Platforms are offering "more advanced tools" and leveraging AI to facilitate selling and enhance the shopping experience. AI can assist with dynamic pricing, enhance search and recommendations, personalize shopping experiences, and automate listing and verification processes, making the resale journey more seamless.

Resale is increasingly viewed as a strategic solution for inventory management and a buffer against broader economic disruptions like rising tariffs and supply chain issues. A significant portion of consumers (59%) indicate they would turn to secondhand if new clothing became more expensive, highlighting its role as an economic shock absorber.

Despite the booming secondhand market, the broader traditional retail landscape still faces significant challenges. Store closures in 2025 are projected to be worse than 2020, with an expectation of 15,000 locations potentially shuttering. This is attributed to lingering effects of the pandemic, inflation, subdued consumer spending, and increasing competitive pressures from ultra-fast fashion brands. This highlights a divergence: while secondhand thrives, some traditional retail sectors continue to struggle, underscoring the ongoing transformation of the entire retail ecosystem.

A New Era for Sustainable and Savvy Shopping

In conclusion, The COVID-19 pandemic served as a pivotal moment, fundamentally transforming thrift shopping from a niche, often stigmatized activity into a mainstream, economically significant, and environmentally conscious retail sector. The initial challenges faced by physical stores, marked by closures and disrupted donation flows, stood in stark contrast to the explosive and sustained growth of online platforms, which became the new frontier for secondhand commerce.

This "Great Thrift Shift" was propelled by a powerful combination of economic necessity, as consumers sought value amidst uncertainty, and a growing, deeply ingrained awareness of sustainability. The pandemic, by forcing financial hardship and simultaneously highlighting environmental vulnerabilities, brought these two powerful motivations into sharper, more widespread focus. The resulting rise in prices across the sector, while challenging for some bargain hunters, reflects the mainstreaming of secondhand goods, which are now valued for their intrinsic worth, uniqueness, and ethical appeal, not just their low cost.

The broader implications of this transformation are profound. For consumers, it means more diverse and accessible choices, though with a necessary re-evaluation of traditional "bargain" expectations. For businesses, it underscores the imperative to adapt to circular models and integrate robust online strategies, leveraging technology like AI to enhance the customer experience. For the fashion industry as a whole, it represents a powerful push towards greater sustainability, resourcefulness, and a more circular economy, where extending garment lifecycles and reducing waste become central tenets.

The thrift economy is not just booming; it represents a "new reality" for shopping. The secondhand clothing industry is projected to continue growing "about three times faster than the overall apparel market", solidifying its position as a savvy, sustainable, and increasingly integral choice for the modern consumer. This signals a permanent shift in how fashion is consumed, perceived, and recycled.

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