The target site ThredUp
Source: target
The goal is to get back into used sales through a deal with resale company ThredUp.
The retailer confirmed Friday that it launched a page on ThredUp in late March that includes listings of women’s and children’s clothing, along with accessories. Some of the items are from Target’s own labels, like children’s clothing brand Cat & Jack, or limited-time designer collaborations, like one with Lilly Pulitzer in 2015, and others are from luxury brands not usually sold by Target. Everything is coordinated by Target from ThredUp stock.
A company spokesperson said Target is in a “test and learn” phase with ThredUp. And refused to share the financial terms of the deal. ThredUp also declined to comment.
This isn’t the first time Target has teamed up with ThredUp, an online consignment and store. Target launched—and then closed—a test for about six months in 2015. It allowed shoppers to get Target credits for gently used items that ThredUp was willing to resell.
A Target spokesperson said the company has decided to partner again with ThredUp to capitalize on customers’ interest in value and sustainability. Target’s new webpage on ThredUp has been marked as a beta test. Includes about 400,000 pieces at a price of up to 90% off.
The partnership aligns with Target’s broader sustainability initiatives, including Target Zero, a new in-store and online label referring to products or packaging designed to be refillable, reusable or compostable. The retailer also recently converted a San Diego-area storefront into the first net-free energy store by adding massive solar panels in the garage.
For retailers, reselling is a way to outsmart Generation Z and millennial shoppers who enjoy “treasure hunting” and the green aspects of thrift, said Ashley Helgans, an equity research analyst who tracks Jefferies. With second-hand purchases, she said, these younger consumers may develop an affinity for new brands and decide to buy directly from the original seller.
For ThredUp, striking deals with retailers is a way to expand its reach and sell inventory more quickly in a growing but highly fragmented industry, Helgans said. It competes with other players, including The RealReal, eBay, Poshmark, and Depop.
ThredUp also has profit sharing deals with retailers like Walmart and Madewell, which feature cross menu items on their websites.
Helgans said that Target’s previous testing may have come too soon. In 2015, the resale market was about $1 billion, according to Jefferies. It has now grown to an estimated $15 billion in 2021 and is expected to more than triple to reach $47 billion by 2025.