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U.S. Apparel Spending Rises 5.1% in March, with Secondhand Transactions Up 22%
Americans increased spending on secondhand clothes by 22% year over year in March 2026, amid a broader 5.1% rise in overall apparel purchases. This growth highlights a divide in consumer behavior, with surges in discount and luxury resale segments. Inflation reached 3.3% annually in March, influencing budget-conscious decisions.
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Secondhand fashion transactions in the United States rose 22% year over year in March 2026, according to a report published this week by the Bank of America Institute. 1% in March 2026 compared to March 2025, ending nearly three years of declines. This growth was not uniform, with discount apparel up more than 4% between the fourth quarter of 2025 and the first quarter of 2026, while secondhand luxury fashion spending jumped fivefold during the same period.
The number of Bank of America customers selling secondhand clothes grew 16% year over year in March 2026, with Gen Z comprising 41% of those sellers so far in 2026. ' Department stores serving middle-income consumers faced challenges, as Kohl’s sales dropped 4% in its fiscal 2025 and predicted a further 2% decline in the following year, according to its most recent earnings report.
Dillard’s total sales remained flat in 2025 compared to 2024, based on its fourth quarter earnings released in February 2026.
In contrast, secondhand platforms reported gains, with ThredUP revenue increasing 20% to $310 million in 2025, as revealed in its earnings last month. The secondhand market grew four times faster than the broader clothing market in 2025, according to a separate ThredUP report issued earlier this month.
' The Real Real, focused on secondhand luxury items, boosted its revenue by 15% to $693 million in 2025, per its earnings report published last month.
4% in February 2026 and marking the highest level since April 2024. Apparel prices rose 3% over the past year ending March 2026. A report from the University of Michigan showed consumer sentiment at its lowest point in the report’s 74-year history as of earlier in April 2026.
