Half of Luxury Shoppers Prefer Resale, Giving The RealReal a Boost
Nearly 60% of luxury consumers now prefer the resale market for high-end items. The RealReal has capitalized on this trend with significant growth and innovation.
Why it matters: As more luxury consumers prefer resale, credit card users who purchase luxury items might consider the benefits of buying secondhand for potential resale value. This shift could affect their spending behavior and credit utilization.
What Happened
In a significant shift in consumer behavior, nearly half of luxury shoppers now consider resale value when making primary market purchases, with almost 60% expressing a preference for the resale market outright, according to PYMNTS. This trend is reflected in the financial performance of The RealReal, a leader in the online marketplace for authenticated, previously owned luxury items. The company reported its fourth consecutive quarter of double-digit gross merchandise value (GMV) growth in the first quarter of 2026, with the third consecutive quarter of growth exceeding 20%.
In Q1 of 2026, The RealReal recorded GMV of $606 million, marking a 24% increase compared to the previous year. The company’s success is not just due to shifting consumer preferences but also strategic innovation. The RealReal’s AI system, Athena, automatically facilitated 35% of sales by the end of the first quarter, and the company aims to increase this to 50% by year-end.
Additionally, The RealReal is expanding its international presence, with active networks now in Italy, France, and Japan. This international expansion is set to further capitalize on the growing global interest in luxury resale.
What This Means for You
This shift towards the resale market could significantly impact how luxury shoppers manage their spending and credit utilization. If you typically purchase luxury items using credit, considering the resale market might offer benefits such as lower initial costs and better liquidity. Purchasing secondhand high-end items can also mean that luxury purchases retain value longer, which is beneficial if you decide to resell the item later.
For those with outstanding balances on credit cards used for luxury item purchases, it might be advantageous to rethink spending strategies. Opting for luxury resale could provide an opportunity to both enjoy upscale fashion and manage revolving credit more efficiently by potentially reducing the amount spent upfront.
Key Takeaways
- Nearly 60% of luxury shoppers prefer the secondary resale market.
- The RealReal has reported strong growth due to this trend and technological innovations.
- Considering resale value can influence credit utilization and spending strategies when purchasing luxury items.
Source: PYMNTS ↗
This article was drafted with AI assistance based on publicly available sources and reviewed for accuracy.