Thrifty business: The recession proved a boon for the industry, but recovery has constricted growth

The Thrift Stores industry is typically countercyclical, with industry revenue growth strongest during periods of economic distress. As a result, the industry performed well early in the five-year period to 2018. During the economic recovery, high levels of domestic unemployment and poverty, as well as low disposable income, led many consumers to shop at industry stores. The Thrift Stores industry's growth is expected to slow over the five years to 2023 as improving economic conditions encourage consumers to divert their shopping away from industry establishments toward retailers of new, higher-quality goods...purchase to read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 13-18
1.6%
Forecast Growth 18-23
Profit
Employment
192,251
Businesses
58,842

Industry Threats & Opportunities

  • The recession led consumers to shop for less costly goods, benefiting thrift stores
  • Industry performance is expected to falter as the economy strengthens
  • Many young consumers will continue shopping at used goods stores to find unique items
  • Industry Report - Industry Locations Chapter

    Similar to most retail industries in the United States, the geographical spread of thrift store establishments closely mirrors the distribution of the population. For example, the Southeast region accounts for an estimated 27.6% of industry establishments and 25.7% of the population. Similarly, the region with the second-largest share of industry establishments, the West, accounts for 16.1% of total stores and contains 17.3% of the population.However, the Mid-Atlantic region slightly deviates from this trend, accounting for an estimated 12.5% of industry establishments but 15.2% of the population; as a result, the percentage of industry establishments in this region is significantly lower than its population size would suggest. The...purchase to read more.

    Additional Insights for the Thrift Stores Industry

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

  • Ability to control stock on hand
  • Accessibility to consumers
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and National unemployment rate in the Thrift Stores industry impact industry performance..

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    What's in this report

    What is the Thrift Stores Industry?

    This industry is composed of stores that sell (mostly donated) used goods, with the intent of donating a significant portion of their proceeds to charity. This industry is a subcategory of the Used Goods Stores industry (IBISWorld report 45331), but excludes consignment shops, antiques shops, rare books stores, used records stores and other resale shops that do not allocate a significant portion of their revenue to charitable activities.

    Industry Products
  • Clothing, accessories and footwear
  • Furniture, kitchenware and home furnishings
  • Industry Activities
  • Retailing used apparel
  • Retailing used books
  • Retailing used furniture
  • Retailing used household appliances
  • Retailing used merchandise
  • Retailing used sporting goods
  • other used 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
  • Poverty rate
  • External competition
  • Number of broadband connections

  • Current Performance
  • Changing demographics
  • New customers for used goods
  • Increased external competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Slower growth
  • Online competition intensifies
  • Table: Thrift Stores Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Orphanages & Group Homes
  • Adoption & Child Welfare Services
  • Consumers

  • Key Selling Industries
  • Civic, Social & Youth Organizations
  • Consumers
  • Private Schools
  • Public Schools
  • Religious Organizations

  • Products & Services
  • Clothing, accessories and footwear
  • Furniture, kitchenware and home furnishings
  • Other
  • Chart: Thrift Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers earning less than $30,000
  • Consumers earning $30,000 to $75,000
  • Consumers earning over $75,000
  • Businesses
  • Chart: Major Market Segmentation for the Thrift Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciation and marketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Thrift Stores

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Goodwill Industries International Inc., Savers Inc.,
  • Table: Goodwill Industries International Inc. - financial performance
  • Table: Savers Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Thrift 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 Thrift Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Poverty rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Consignment Shop
  • A store that provides the service of selling used goods for consumers, receiving a portion of the sale's proceeds as compensation.
  • Countercyclical
  • A countercyclical good or service increases in demand as economic conditions deteriorate.
  • E-Tailer
  • An electronic retailer (i.e. one that is based on the internet).
  • Nonprofit Organization
  • Also referred to as "not-for-profit," these organizations invest the entirety of their profit towards the advancement of their mission.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Thrift Stores Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Thrift Stores industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 Thrift 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 Thrift 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 Thrift Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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