Wells Fargo has a deep dive out on the expected growth in the emerging resale clothing industry.
"We estimate that the US apparel/footwear resale market is only ~$24B today and growing ~15% (compared to the overall US apparel/footwear market of ~$400B, growing at just ~2%). The ability to take share in the traditional apparel footwear space appears highly visible. At just ~6.0% of the market today, we see a clear path to ~10.0% by 2022 (fueled by share gains from dept stores and traditional retailers)," updates analyst Ike Boruchow.
Boruchow says while RealReal (NASDAQ:REAL) catches most of the investor attention today, compelling resale models from upstarts like StockX [Google (NASDAQ:GOOGL) has a piece], Poshmark, Rebag and thredUP [Goldman Sachs (NYSE:GS) has a stake] should be closely watched as potential disruptive players.
Retail chains who are already partnering with a resaler include Stage Stores (NYSE:SSI), Neiman Marcus, Macy's (NYSE:M), J.C. Penney (NYSE:JCP) and Hennes & Mauritz (OTCPK:HNNMY).
Companies like Nike (NYSE:NKE) and Lululemon (NASDAQ:LULU) could potentially feel a pinch from the increased consumer interest in higher-end resale products.
