Thrift stop: Growth will slow as consumers with higher disposable incomes prefer to buy newer items

Revenue in this industry is historical countercyclical, rising during periods of poor macroeconomic performance. As Canada endured a slight rise in unemployment between 2015 and 2016, many cash-strapped consumers opted for less-expensive used goods instead of purchasing new items from retail stores, causing industry revenue to modestly increase. Moreover, persistently high unemployment has led to a slight shift in consumer purchasing patterns over the past five years, as individuals and families with less discretionary income continue to buy used apparel and household items to save cash...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
2.2%
Forecast Growth 17-22
Profit
Employment
7,923
Businesses
2,496

Industry Threats & Opportunities

  • Revenue will slightly rise as consumers with less discretionary income continue to buy used goods
  • Rising competition from external industries has dampened revenue for used goods stores
  • Gains in disposable income and rising employment will offer consumers financial freedom
  • Industry Report - Industry Products Chapter

    Men's, women's and children's clothingClothing, which includes footwear as well as accessories, such as women's handbags, is the largest product segment in this industry, accounting for an estimated 47.6% of total industry revenue in 2017. Not-for-profit used goods stores, operated by large industry players like the Salvation Army, offer a wide variety of men's, women's and children's clothing. Most not-for-profits have charitable aims, serving low income individuals. As a result, prices and margins for these establishments are generally low. The past five years have exhibited the emergence of many new for-profit used goods stores. Franchised for-profit establishments, such as Plato's Closet, have succeeded by providing high-quality used women's clothing (i.e. des...purchase to read more.

    Additional Insights for the Used Goods Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Used Goods Stores Industry are

  • Attractive product presentation
  • Ability to control stock on hand
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and National unemployment rate in the Used Goods Stores industry impact industry performance..

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    What's in this report

    What is the Used Goods Stores Industry?

    This industry collects or purchases used merchandise and sells these goods directly to consumers. The industry includes thrift stores and pawnshops but excludes stores that sell secondhand motor vehicles and parts, such as automobiles, recreational vehicles, motorcycles, boats and tires.

    Industry Products
  • Women's clothing
  • Men's clothing
  • Children's clothing
  • Footwear
  • Furniture, housewares and kitchenware
  • Antiques, collectibles, art and novelty items
  • Industry Activities
  • Selling used men's, women's and children's clothing
  • Selling used books
  • Selling used baby furniture and equipment
  • Selling used garden equipment
  • Selling used kitchenware and houseware
  • Selling used toys
  • Selling used musical instruments
  • Selling used electronics
  • Selling used sporting goods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • National unemployment rate
  • Percentage of low income individuals
  • Number of fixed broadband connections

  • Current Performance
  • For-profit establishments on upswing
  • Increased competition
  • Children’s goods legislation
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving economy stalls industry growth
  • Competition intensifies
  • Table: Used Goods Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Used Goods Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Healthcare and Social Assistance In Canada
  • Consumers in Canada

  • Key Selling Industries
  • Consumers in Canada
  • Private Schools in Canada
  • Public Schools in Canada

  • Products & Services
  • Furniture, housewares and kitchenware
  • Women's clothing
  • Antiques, collectibles, art and novelty items
  • Men's clothing
  • Other
  • Footwear
  • Children's clothing
  • Chart: Used Goods Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 45 to 64
  • Consumers aged 18 to 44
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Used Goods Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Used Goods Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Used Goods Stores Industry

  • Industry Globalization
    The Salvation Army National Corporation,
  • Table: The Salvation Army National Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Used Goods Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Used Goods Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Consignment Shop
  • A used goods store that pays a portion of a sale's proceeds to the original owner of the good.
  • Countercyclical
  • An economic quantity negatively correlated with general macroeconomic conditions.
  • Niche Market
  • A market subset that industry operators cater to with specialized products or services.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Used Goods Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Used Goods Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Used Goods Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Used Goods Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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