The Recommerce Revolution Is Helping Cash-Strapped Consumers

The cost of living crisis continues to challenge UK shoppers, as prices for food essentials like bread, milk and cheese continue to rise.

The stark reality of the impact of food price inflation can be seen in the latest figures from the Department for Work and Pensions (DWP) which tell us that 3 percent of families across the United Kingdom (2.1 million people) used a food bank in the year ending March 2022. In a true north/south divide reality, families in the north of England and Scotland were most likely to interact with a food bank service in the last year.

As the appetite for non-essential shopping continues to be suppressed, more consumers are turning to second hand sales platforms and discount retailers as a way to save.

UK sales volumes saw a 1.2 percent in February 2023 according to figures from the Office for National Statistics (ONS); the most significant increase since October 2022 but nonetheless subdued.

Whilst the UK saw an increase in grocery sales, spending in restaurants and food delivery was adversely affected. Recently, The Restaurant Group (TRG), incorporating brands such as Wagamama, Frankie & Benny’s and Chiquito, has announced it will be closing approximately 35 loss-making restaurants in an effort to uplift earnings.

The same ONS report also stated non-food sales saw an increase of 2.4 percent last month, highlighting “strong growth” in second-hand goods retailers such as auction houses and charity shops. Many consumers are opting into the recommerce philosophy for the first time as both sellers and buyers.

Platforms like the clothing resale site Vinted, have seen a significant sales uplift as shoppers feel free of any stigma around second hand goods and celebrate the recommerce economy.

Last year, Vinted’s sales increased by a remarkable 65 percent from $159 million to $263 million as cash-strapped consumers were keen to create extra funds by selling unwanted clothing and buying second hand in order to save money.

Whilst finances might be driving something of a recommerce revolution, a significant consumer focus is on finding more ethical ways to shop.

A study from e-commerce specialists Quickfire Digital and Climbing Trees, revealed that within the next two years 80 percent of UK consumers will boycott clothing brands if sustainable fashion practices are not prioritised.

The research highlighted reasons why consumers turned away from apparel brands. These included slave labour practices, wasteful packaging and sustainable materials and fabrics not being used enough.

The current pressure point for retailers can not be underestimated: consumers are rapidly flocking to buy from re-commerce sites to sell and buy, finding their own way to create ‘fast fashion’ in a much more environmentally friendly way. Instead of relying on low price, high-churn fashion brands, consumers realise they can update and refresh their own wardrobes by selling what they are finished with and using pre-loved platforms to buy more economical replacements.

This circular sales economy sits soundly from an ethical point of view and leaves a greener fashion footprint, yet it also appeals to those consumers keen to build and curate a more personalised, unique wardrobe.

Indeed, as resale platforms focus on acquisition and ease of use, consumers will continue to turn to recommerce as a credible and reliable channel for fashion.

As consumers share on social channels every outfit bought through resale or rented, their more ethical fashion purchasing decisions become celebrated and so the desire to shop in this way will perpetuate. A virtuous circle is created.

Some retailers have begun to embrace this new way of shopping with announcements about resale, rental and repair being part of the vision: IKEA, Zara, JD.com and the URBN group to name a few.

It is clear wake-up call that all retail companies need to get real with a valid and responsible commitment to when it comes to sustainability and this includes making resale a realistic and easy part of the offer.