Dive Brief:
- Joining a long list of retailers with recommerce offerings, The Container Store Group is launching a resale program dubbed the Closet Clean Out using ThredUp’s resale-as-a-service technology, the organization retailer announced Monday.
- Through the program, customers can earn digital gift cards to The Container Store when they send in gently used women’s and children’s clothing, shoes and accessories from any brand in their closet.
- Customers can pick up ThredUp’s Clean Out Kit at one of the retailer’s 97 stores or obtain a prepaid shipping label from its website and ship their items to ThredUp for free. For items that sell on ThredUp, customers will receive an eGift card that can be used at The Container Store and its website.
Dive Insight:
Through The Container Store collaboration, ThredUp wants consumers to use its Clean Out Kit to give their clothes a second life, James Reinhart, CEO of ThredUp, said in a statement. The Container Store noted that it is the first custom closet retailer to work with ThredUp.
“We at The Container Store believe in the power of organization to transform lives, and as a company, we are committed to a sustainable future for ourselves and our planet,” Melissa Collins, chief marketing officer of The Container Store, said in a statement. “We could not be happier with this program, where our customers can give new life to their belongings as they clean out and organize their spaces — and be rewarded with Container Store credit in the process.”
The Container Store is launching its resale offering alongside its Sustainable Living event, where the retailer will showcase its sustainably-source items in categories like recycling, composting, natural cleaning and food preservation.
In recent months, ThredUp has added more brands and retailers seeking to enter the resale market, including Kate Spade, J. Crew and H&M. Last month, American Eagle jumped on the trend with its own resale shop through ThredUp, featuring a gender-neutral selection that includes jackets and accessories.
As it accrues more retail and brand partners, ThredUp continues to release reports predicting the rise of resale. In its 2023 Resale Report, the company projects that the used goods market will reach $350 billion globally and $70 billion in the U.S. by 2027.
Despite the rise in resale and more retailers using its services, ThredUp experienced a slowdown in its fourth quarter last year. Its Q4 revenue dipped by 2.14% compared to 2021 to $71.3 million, and its gross profit declined by 7% to $45 million year over year. In a conference call with analysts, Reinhart attributed the results in part to consumers getting good deals on new clothing thanks to an inventory glut at many apparel chains.
Besides soliciting secondhand goods through its resale service, The Container Store has also sought to attract shoppers by honoring Bed Bath & Beyond coupons in stores through the end of May following the retailer's bankruptcy.
