Circular Second-Hand Apparel Business: An Empirical Study from the Retailers' Perspective

The second-hand apparel market has experienced significant growth in recent years, driven by increasing consumer awareness of sustainability, affordability, and value retention. This expansion aligns with the broader shift in the fashion industry towards circular economy principles, as consumers seek alternatives such as renting, repairing, exchanging, and purchasing pre-owned garments to reduce the environmental impact of the sector. Despite the rising popularity of second-hand apparel, most existing research has primarily focused on consumer behavior and business models for online platforms, while the perspective of physical retailers remains underexplored. Given the crucial role retailers are expected to play in this evolving market, this study aims to address this research gap by conducting an exploratory analysis of physical retailers in the second-hand apparel sector, investigating their procurement strategies and business expectations. To this end, a questionnaire survey was designed and then administered to a sample of second-hand retailers in Torino (Italy). The collected data were first evaluated using Cronbach’s Alpha coefficient and then analyzed with the Kruskal-Wallis test to assess procurement strategies, revenue growth, and trends in product features. The findings indicate that retailers rely on diverse sourcing channels, with vintage clothing emerging as the most profitable category, demonstrating strong revenue potential. Furthermore, retailers located in the city centers, with a large number of employees, show a more significant increase in revenues. However, despite the market’s growth, the adoption of online sales by the respondents remains limited. The study highlights key business enablers and emphasizes the potential for further development of the sector at issue. From a theoretical point of view, this research may enlarge the body of knowledge on the promising second-hand apparel market by incorporating the viewpoint of physical retailers. From a practical perspective, the findings of the study provide retailers with effective levers that might improve their business.