Why are Thrift Store Prices on the Rise? (2024)

Josie Hester explores the reasons behind the recent rise in prices for thrifting, which used to be affordable.

Why are Thrift Store Prices on the Rise? (3)

Enter: the thrift store. Savers, Goodwill, you name it. It might not look like much from the inside (or the outside quite honestly), but the gems that can be found hidden are surprisingly amazing. While searching through the endless racks of somewhat worn, somewhat smelly clothing, the ultimate grandpa sweater appears. It has to be cheap, right!? It’s some grandpa’s old, used, worn, gross sweater. WRONG. $17.99 the price tag reads. That’s right. Nearly $18 for a used sweater that the thrift store received for free. So, what’s going on? Why have thrift store prices become nearly equivalent to mall prices?

It’s easy to blame resellers on apps like Depop. It seems that resellers are the ones buying out thrift stores and marking up prices. While this contributes to the problem, as it causes competition for thrift stores, corporate greed is also to blame. What people often do not realize is that thrift stores like Savers and Goodwill are corporate. Both companies are for-profit. Corporate thrift stores are able to receive products for free, sell the products at high markups, and get away with it.

Thrift stores originally were created for a variety of reasons. Religious-affiliated ones used the profits to fund outreach programs. Other thrift stores would hire disabled and/or poor people, oftentimes in exchange for food and housing. Now, according to an article by Olivia B. Waxman of Time Magazine, thrift stores have become over a $14 billion dollar industry. What happened to helping others?

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On the front door of Savers reads a sign, “We are a for-profit organization that champions reuse. Shopping here does not support any nonprofit, but donating your clothing and household items does! We pay our nonprofit partners for your stuff, helping them fund programs in our community.”

The same information can be found on the Savers website. The information is conflicting, as there are no nonprofit partners listed anywhere near this statement, on the door or online.

Similarly, Goodwill makes some contradicting statements. On their website, they claim to help their employees improve their lives by assisting them to grow in their positions and find a career. According to an article by the Colorado Springs Business Journal, from January 2023, though, some of Goodwill’s disabled employees make as little as $1.44 an hour. It is estimated that Goodwill pays around 7,300 disabled employees way below minimum wage.

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So, why are the prices so high? As a child, I grew up in a lower-middle-class household. The thrift stores were the only place my family would shop because a full outfit would be under $10. After a recent trip to Goodwill, I was able to document some of the insane prices. $79.99 for a used wedding dress. $14.99 for a used, out-of-season dress.

Savers has explicitly stated that they are a for-profit company, despite receiving all products as donations. The popularity of thrifting has created an inflation in the prices these thrift companies can get away with.

The modern generation is also quick to blame TikTok and reselling apps for the rise of thrift prices. And, while not the main contributor, these apps have proved to be a threat to thrift stores. Several content creators on TikTok have devoted their content to solely creating thrifting videos and showing off what they are selling on Depop. Below is a list of creators who have made their content dedicated to thrifting. These are just a few examples. Searching simply for the word “thrift” on TikTok will generate an endless list of thrifting content creators.

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This content has created an uptick in thrift store sales and what TikTok has named “resellers.”

A reseller is a person who buys large amounts of items from thrift stores, then resells them on online reselling platforms, such as Depop, for a much higher price.

While scrolling through Depop, it is easy to recognize that the prices are significantly higher than the thrift stores, which already sell their pieces for record-breaking prices. The sole difference between thrift stores and resellers is that resellers are buying their products.

Thrift stores have everything donated to them. Resellers are taking the time to sift through racks of clothing to create a curated collection of items, which they then purchase. Although it may seem unethical, this is what fast fashion companies often do- purchase from manufacturers to then sell at a higher price.

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While resellers and TikTok can be blamed for a rise in the interest in thrifting, they can not be fully to blame for the high prices. At the end of the day, corporations are the ones deciding the prices of their donated products. Reselling would not be a trend if it were not successful.

Thrifting does not have to be a trend of the past. Despite the raised prices, it does have its benefits. Buying secondhand is great for the environment. Pieces that are purchased at a thrift store are much less likely to end up in a landfill.

Before shopping at a corporate thrift store, see if there are any local thrift stores in your area. Often times these are non-profit stores that benefit a good cause. Plus, the prices are noticeably cheaper. Some thrift stores, such as the ASPCA Thrift Store offer bins, where you can buy clothing and other items by the pound. Thrifting is a great alternative to supporting fast fashion and corporations, as long as it stays local and supports a cause.

Why are Thrift Store Prices on the Rise? (2024)

FAQs

Why is thrifting on the rise? ›

Thrifting has surged in popularity, especially with members of Gen Z, who value individuality and sustainability. But traditional thrift stores are seeing a decline in quality items, retail experts said. The explosive growth of the resale market and the rise of fast fashion are partly to blame.

Why are thrift stores so expensive now? ›

1. Increased popularity: Thrift store shopping (thrifting) has gained popularity in recent years greatly due to social media, content creation, environmental concerns, and a desire for unique or vintage items. This increased demand has driven prices up as thrift stores capitalize on the trend.

Why is goodwill so overpriced now? ›

“Goodwill's rising prices can be attributed to several factors,” said Casey Jones, founder and head of marketing and finance at CJ&CO. “Firstly, the cost of operations — including rent, utilities and wages — has increased over time. Secondly, the quality and brand of donated items can also influence pricing.

How do thrift stores determine their prices? ›

Their pricing is influenced by various factors, including the item's condition, brand, demand, and market value. Thrift stores walk a fine line between offering affordable prices and maximizing their revenue. While their primary goal is to sell items quickly, they also need to ensure they are making a profit.

Why is Gen Z into thrifting? ›

For Gen Z, thrifting is more than just an affordable practice; it's a form of self-expression. With a wide range of one-of-a-kind items in thrift stores, they're able to find unique pieces that reflect their personal style. Some Gen Zers view thrifting and reselling as a challenge to find the diamond in the rough.

What's the best day to go thrifting? ›

According to Goodwill, the perfect time slot to shop at thrift stores is in the morning on both Monday and Tuesday. This is because, at least as far as Goodwill is concerned, people tend to donate garage sale remnants on Sunday, so the pickings are new and fresh come early weekdays.

Why are people boycotting goodwill? ›

Goodwill receives public funds, accepts philanthropic donations, and profits from the sale of donated goods, but refuses to pay its workers with disabilities the federal minimum wage.

Do rich people buy from thrift stores? ›

Wealthier people have begun to frequent thrift stores, shopping for the same items as low-income people who were the original customers of the secondhand shops. In addition to wearing the clothes themselves, many thrifters in recent years have also started reselling the clothing on websites like Depop at a higher rate.

Is it worth it to buy clothes from thrift store? ›

There are numerous benefits to thrift shopping and buying used instead of new. As we mentioned above, when you buy used, you're not only saving money, you're helping to save the environment. Donating and buying used items keeps them out of the trash while preserving the resources that go into making new goods.

Why does goodwill have a bad reputation? ›

Goodwill has been linked to several workplace deaths, particularly among disabled workers. These incidents raise questions about the organization's commitment to employee safety and whether they are placing vulnerable workers in hazardous conditions.

Does reselling increase thrift store prices? ›

It's easy to blame resellers on apps like Depop. It seems that resellers are the ones buying out thrift stores and marking up prices. While this contributes to the problem, as it causes competition for thrift stores, corporate greed is also to blame.

Why is goodwill written off? ›

If the existing goodwill is not written off, it will have the effect of crediting partners with an excessive amount of goodwill. To put it in other words, if we want to carry forward existing goodwill in the books, then the value of existing goodwill should be deducted from the new value of goodwill.

How to bargain at thrift store? ›

However, keep in mind that bargaining is a two-way street. While you're looking for imperfections, the thrift store staff is assessing the item's value. So, be fair in your assessment and avoid pointing out minor issues that can easily be fixed. Focus on significant flaws that justify a lower price.

What is the profit margin on a thrift store? ›

In general, thrift shops typically aim to generate revenue by reselling donated items at prices significantly lower than those of new items. Profit margins can vary from shop to shop, but they often range from around 25% to 60% of the sale price.

Is there money in owning a thrift store? ›

1. Can you make money having a thrift store? Yes, it is possible to make money by opening a thrift store. Some online thrift store companies make a high-profit margin of 80%.

When did thrifting become so popular? ›

The 1960s and 1970s saw a surge in thrifting's popularity, driven by countercultural movements, such as the hippie and Bohemian styles. Thrift stores became treasure troves of vintage fashion, offering unique pieces that reflected individuality and rebellion against mainstream fashion.

Why do people think that thrifting is being gentrified? ›

Some argue that thrifting has essentially become gentrified because of its trendiness. Wealthier people have begun to frequent thrift stores, shopping for the same items as low-income people who were the original customers of the secondhand shops.

Why do people like thrifting so much? ›

Thrifting is unique because it allows the outside world to grasp a small bit of personality from someone else's closet. I love that secondhand shopping is accessible and allows everyone to find and express their own style.

Why is thrift shop so popular? ›

The minimalist mindset while thrifting

Thrift stores are also popular because people can make donations and easily drop off unwanted items around the house. A popular trend in today's world is adopting the minimalist mindset while getting rid of household clutter.

References

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