What: An opinion piece on the reasons why second-hand goes hand in hand with physical retail.

Why it is important: Many IADS members and other department stores are embracing the trend by opening second hand spaces, and this is bringing in a new clientele, often younger. The key questions are 1/ how to convert that clientele into buying something else in the store 2/ how to make the second-hand space profitable.

The second hand market is estimated to reach $82bn by 2026, doubling in size, meaning that resale will grow sixteen time faster than the retail clothing sector.

To accommodate such a growth, some second hand players are opening physical locations, such as Fashionphile which opened a 6,000 sqm location in New York, after having opened a 3,000 sqm one in California.

Forbes argues that this is a must-do for second hand players: it makes the life of sellers easier by doing the picture and referencing job for them, and, for the buyers, it is more cost-effective compared to shipping the items. Some dedicated players are partnering with retailers to come with a keys-in-hands solution, but some others, like Ikea, dedicate whole retail units to physical resale. In both cases, it seems that such ventures are bringing in an appreciable amount of traffic.

Why physical retail is essential to second hand