New Zealand spending at secondhand retailers climbed 25.5 percent from October 2022 to last month, outpacing general inflation rates as cost-of-living pressures reshape household budgets.
Data from Dot Loves Data shows that shoppers spent $19.7 million at secondhand retailers last month, compared with $15.7 million in October 2022.
That growth outstripped general inflation of about 15 percent. ANZ card data from October showed a 16.2 percent year-on-year increase in secondhand shop spending, marking the largest increase of anything in the durables category.
Cost pressures drive buyers to op shops
Marino Harker-Smith has relied on op shopping for a long time primarily for environmental reasons, but rising living costs have made buying new items increasingly unappealing.
“Even like phones and tablets, I prefer to buy refurbished models as it is a lot cheaper,” Harker-Smith said. “This year I am buying most of my children’s gifts second hand with the exception of maybe one or two clothing items that they are particular about style-wise.”
Working part-time as a single parent while renting in Wairoa, Harker-Smith said she needed to make savings wherever possible. She noted an influx of items from platforms like Shein and Temu appearing in the op shops, which she said made finding a bargain more challenging.
Charities adapt to rising demand
“Cost of living pressures have been steadily building over the past five years and shoppers have been increasingly gravitating toward charity stores, with clothing and homeware being the most popular categories,” retail consultant Chris Wilkinson said. At the same time, charities have been ramping up their retail channels.
“We have been involved with a number of well-known charities as they grow their store networks, build better operational systems and deploy e-commerce which has been another way that these organisations have grown market share,” Wilkinson said.
Retail NZ chief executive Carolyn Young said even charity shops were having to think more like retailers by improving how they present the store, curating goods, and setting price points. Those adjustments have helped drive double-digit growth in that space over the last couple of years.
Curated vintage stores attract young shoppers
Beyond traditional charity shops, there are an increasing number of secondhand sellers operating mostly online and via boutiques, capturing a following among younger consumers seeking differentiated clothing. Mikaela Venimore, director of online secondhand retailer Preloved Charlies, said secondhand shopping has changed.
“Twenty years ago, secondhand was seen as something for the poor, as something that was for those that didn’t have enough to buy new, where I think now with fast fashion giants like Shein, Temu, even look at H&M and Zara, it’s a bit of a revolt against that and the impacts that can have on society,” Venimore said.
Major brands are also entering the pre-loved market. Jacob Faull, co-founder of Nature Baby, said its Worn Again campaign had been a success, while fashion label Ruby operates Ruby says Recycle.
Common questions about secondhand shopping
Why is secondhand spending increasing faster than inflation?
Data from Dot Loves Data shows secondhand retail spending increased 25.5 percent from October 2022 to last month, ahead of general inflation of about 15 percent as household budgets face sustained pressure.
How are charity shops changing their operations?
Retail NZ chief executive Carolyn Young said charity shops have upped their game in terms of how they present the store, how they curate everything, and where they present things to make it easy for customers to find goods.
Are mainstream brands offering used goods?
Some retailers are offering pre-loved and secondhand options for their own products. Nature Baby’s Worn Again campaign collects secondhand items to put in select stores, and fashion label Ruby operates Ruby says Recycle.
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