Consumers are cutting back on spending, giving secondhand stores and rental marketplaces heightened opportunities to engage with them.

• 30% of US adults worry tariffs would affect apparel costs, per an April Numerator survey.
• 58% of US consumers shopped pre-owned items last year—a 6 point increase from 2023, per ThredUp’s 2025 Resale Report.

“There’s so much supply sitting in people’s homes,” said our analyst Sky Canaves in a “Behind the Numbers” episode. “The real key is getting them to adopt that circular mindset.”

By promoting affordability and community, resale and rental platforms are convincing consumers that keeping up with fashion doesn’t require owning something new.

Matching consumer demand

Nuuly, a rental service owned by Urban Outfitters, offers consumers six rental items a month across multiple brands at a fixed price. Nuuly delivered 60% year-over-year (YoY) growth with a 53% increase in average active subscribers, per a Q1 Urban Outfitters earnings call.

Nuuly Thrift, an exclusive service for subscribers, allows users to purchase secondhand items at a discounted price in addition to their six items.

“We launched Nuuly’s Thrift Shop to offer our customers more ways to engage with circular and affordable fashion,” said Kim Gallagher, executive director of marketing and customer success at Nuuly. “While our decision wasn’t directly driven by macroeconomic factors, we know value and circularity matter even more to consumers during uncertain times.”

More brands are expected to enter the space. 76% of retail executives without a resale program say they’re considering or planning one—a 2 point increase YoY, per ThredUp.

Making circular fashion social

Many fashion resale marketplaces have positioned themselves as community drivers, leveraging the peer-to-peer element as a differentiator from traditional retail.

Depop pushed marketing in New York City last month, hosting a block party and partnering with Brooklyn Stroll Club, a community for Brooklyn dads to make friends while pushing their kids in strollers.

Beyond creating a shared products ecosystem, Nuuly has built community by encouraging consumers to share how they actually narrow down and style products—whether that’s through detailed product reviews or social media content.

The platform also has a Club Nuuly program that rewards users who style and post their Nuuly products with gift cards.

“Since Nuuly launched, word-of-mouth has been our most effective growth driver,” said Gallagher. “Customers love sharing their Nuuly experience, and that advocacy has been key.”

A successful partnership was with artist and designer Ella Emhoff, founder of Soft Hands Knit Club, who the brand partnered with to host a knitting workshop, said Gallagher.

Users are promoting these platforms as tools for fashion individuality—a notion popular among younger consumers, said Canaves.

“If you're a young consumer, you just think of fashion, and whether you buy something new or secondhand, it can still reflect personal style,” she said.

Building secondhand sustainability

While younger generations drive the secondhand and rental markets, they are also key fast fashion shoppers. This is a concern if these markets only lead with competitive pricing, said our analyst Rachel Wolff.

“We talk about Gen Z and Millennials being bigger resale users, but they’re also the biggest buyers of fast fashion,” said our analyst Rachel Wolff. “If you take the price component out, will resale stick around?”

Beyond product reviews and styling tips, Nuuly seeks more personal stories on how the service has benefitted influencers and consumers, said Gallagher.

“Given that the rental industry is still nascent, we see high impact in channels that allow the message of why you should rent to resonate,” said Gallagher.