While many retailers in Canada are feeling the pinch of economic headwinds and tariffs, shops like Karla Ahlqvist’s Wildlife Thrift store in Vancouver are bucking the trend. Despite a decline in consumer confidence, which saw a 16% drop in March, sales at the store have continued to climb steadily over the years and have even seen a 10% increase in the first quarter compared to last year. What sets these stores apart? According to Ms. Ahlqvist, it’s their resale model, which doesn’t involve importing, manufacturing, or buying products every month. This approach has allowed them to remain relatively unaffected by the pressures of the trade war.

“We are remarkably unaffected by tariffs and anything that Donald Trump does,” said Ms. Ahlqvist. “It’s mostly because we are simply resale. We’re not importing, we’re not creating, we’re not manufacturing and we’re not buying… every month and every year, we consistently tend to do a little bit better.”

Many businesses have struggled to adapt to the trade war, which has sent global supply chains into disarray and raised costs due to painful import duties and pervasive uncertainty. However, the resale industry has remained largely unscathed, with some businesses even thriving.

• According to a March report from the Conference Board of Canada, the index of consumer confidence declined 16% month-over-month.
• The RBC estimates that Canadians are pulling back on shopping and spending, with estimates for spending, excluding autos, dipping 0.1%.
• Meanwhile, sales at Wildlife Thrift store’s Vancouver location, where most items are under $20, were up about 10% at the end of the first quarter compared to last year.

1. Experts say that the resale industry has not only remained unaffected by the trade war, but has also seen a rise in demand for thrifted goods.
2. According to Jenna Jacobson, an associate professor at Toronto Metropolitan University focused on retail, “When tariffs are imposed on imported apparel, footwear, they’ll directly raise the cost for consumers… those costs are often passed on.”
3. As a result, some consumers may choose more affordable alternatives, which could include discounted retailers or second-hand marketplaces.

Publicly traded thrift-shop companies are seeing their shares soar in response to the tariffs. ThredUp, a Nasdaq-listed company, saw its shares spike over 50% while Savers Value Village rose more than 22% on the New York Stock Exchange. Some charity shops, like Goodwill, are also drawing in crowds. According to Bev Kobe, president and CEO of Goodwill Industries Ontario Great Lakes, sales since February in retail stores are up 6.13% over the previous year, while transactions are up 4.95% over the last year. However, rising demand for second-hand clothes is making this fashion category less accessible. Reddit communities have been alleging that thrift-store chains in Canadian cities are dramatically raising prices. According to experts, the price hikes in the sector are largely due to spiking demand, as well as the rise in sustainable-fashion influencers.

• According to the 2024 Savers Thrift Report from Value Village, nearly one in three Canadians have thrifted in the past year alone.
• More than 40% of Gen Z shoppers are thrifters, and 25% have increased or plan to increase their spending in this category in the next three years.
• 42% of Gen Zs plan to increase their spending on second-hand clothes in the next three years.

The growing competition will require resellers to pivot in terms of price and assortment, according to Liza Amlani, principal at Retail Strategy Group.

“Retailers need to have a good understanding of the market and what their customers are willing to pay,” she said. Not all resellers are optimistic about the future, however. Some, like Nicole Babin, founder of Common Sort, are concerned that if tariff turmoil escalates further, demand may decrease. “If our customers don’t have money, they don’t shop,” said Ms. Babin by email. “When people are scared, they don’t spend their money.”

For now, some resellers are focusing on maintaining their pricing strategy and customer base. Karla Ahlqvist, owner of Wildlife Thrift store, has no intention of raising prices. “It comes down to the ownership and our business model is to not gouge people,” she said.

Thrifting as a sustainable fashion option

Thrifting has become a popular sustainable fashion option, with many consumers choosing to buy second-hand over new, mass-produced clothing.

According to Jenna Jacobson, the rise of sustainable fashion has contributed to the growing demand for second-hand clothes.

“Sustainable fashion is all about reducing waste and minimizing environmental impact,” she said.