The Clinton Herald, Clinton, Iowa

Lifestyles

May 10, 2014

Resell jeans? Resale value goes beyond used cars

NEW YORK (AP) — Jenna Broems shops for clothes the same way she hunts for a new car: She considers resale value.

Broems, who lives in Stamford, Connecticut, only buys brands like Abercrombie & Fitch and 7 For All Mankind because she believes they will fetch the highest prices when she’s ready to move on.

“I’m now walking in like ‘What’s the return of this? Am I going to be able to resell?’” said Broehms, 38, a teacher who has gotten $2,500 from stuff she’s resold on ThredUP, an online resale site for used clothes.

Americans increasingly are considering the resale value when they shop for everything from jeans to handbags. The habit is in part due to a growing number of web sites that make it easy for shoppers to buy and resell pre-owned goods.

It’s the latest reflection of the tough economy. Buying used goods at consignment shops became popular during the recession when Americans were hurting for extra cash.

But the habit has stuck as people got used to being able to wear the latest fashions without paying top dollar: Just as people lease a new car every couple of years so they’re always riding in style, reselling clothes is a way for Americans to spend money without spending a lot of additional cash.

The trend also is a consequence of the escalating cost of luxury. Rising prices of designer merchandise in recent years have tested the willingness of even affluent shoppers to pay full price. The price tag of a classic Chanel handbag, for example, is now $4,900 this year, up from $2,250 in 2007.

The size of the resale market is tiny: about 10 percent of overall luxury goods — including clothing, handbags, accessories and home furnishings, are sold in the aftermarket — with about one percent of pre-worn goods sold online, estimates Forrester Research’s Sucharita Mulpuru.

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