Good news, finance bros: Patagonia wants to make it cheaper for you to grow your collection of fleece vests.
Driving the news: Patagonia’s CEO told Axios this week that the company is looking to launch a new shopping feature that makes it easier for customers to buy more affordable, second-hand versions of products.
- Second-hand sales currently make up only 1% of Patagonia’s sales, but the retailer is working to build up its resale business until it becomes profitable.
- Companies like Canada Goose, Hudson’s Bay, and even Lululemon have all launched resale programs in recent years, but profits in the space have proven to be elusive.
Why it matters: With the sole mission of addressing climate issues (like reducing clothing waste), Patagonia is uniquely motivated to build a resale business model that not only works for them but could eventually serve as a blueprint for other retailers.
- CEO Ryan Gellert claims the goal of making the second-hand business isn’t profit-seeking, but to prove that, on a large enough scale, the resale model can work.
Bottom line: The second-hand retail business has the potential to become a lucrative one. In Canada, almost a third of shoppers already buy pre-owned products every month, and that number will likely grow as more consumers prioritize sustainability.—LA