Why second-hand in stores is the future of retail?

Fashion is undergoing a profound transformation. While e-commerce continues to gain ground (+14% in 2023, source: Fevad), physical stores are seeing a decline in foot traffic. In 2024, in-store sales dropped by 7.3% (Retail Market Insights, 2024), a clear signal that brands need to rethink the in-store experience. In response to this shift, second-hand is emerging as a strategic and differentiating solution.

Already accounting for 15% of the apparel market, circular fashion is expected to surpass fast fashion by 2030(ThredUp, 2023). Yet, while the circular economy is becoming embedded in consumer behavior, many brands still struggle to integrate second-hand into their retail model. A missed opportunity, especially as only 40% of consumers still consider physical stores as their primary shopping channel (Retail Market Insights, 2024)

Far from being a constraint, integrating second-hand into stores is an opportunity: to reignite customer excitement, drive traffic, and position the brand within a sustainable and innovative approach. Brands that embrace this shift today are setting themselves up as leaders in a rapidly evolving market.

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The era of experiential retail

Physical retail can no longer be just a place for transactions. Today, 73% of shoppers prioritize in-store experiences(IFM Panel, 2023), emphasizing the importance of advice, service, and emotional connection with the brand.

By incorporating second-hand directly into stores, retailers enrich their offering and transform their spaces into hubs for engagement and product value enhancement. A customer walks in with an item they no longer wear, exchanges it for store credit, and strengthens their relationship with the brand.

The process is seamless: items are authenticated, evaluated, and converted into store credit within minutes. No delays, no friction just an engaging and rewarding experience.

The numbers speak for themselves: 51% of all second-hand trade-ins processed through Faume already happen in stores, creating a new cycle of purchasing and loyalty that drives sales while deepening customer engagement.

Making in-store second-hand as easy as a regular purchase

One of the main concerns brands have about integrating second-hand in stores is the perceived complexity of the process. How to manage logistics, integrate recovered items into inventory, and train teams without overburdening them? Yet, when designed to fit naturally into existing operations, these barriers disappear.

With Faume, in-store trade-ins become a smooth process, with no administrative burden. When a customer drops off an item, store teams follow a simple, intuitive workflow. Each item is inspected on-site, validated, and then directly integrated into the global inventory. Whether the item is later resold in-store or online, everything is synchronized in real-time, ensuring seamless management with no extra effort for staff.

And the results are clear: +226% increase in trade-ins within just two months of launching an in-store second-hand program, with an immediate impact on revenue. More impressively, 86% of traded-in items found a new owner within three months.

For store staff, this program becomes an asset: 77% of sales associates actively engage in second-hand programs within the first three months, incorporating it seamlessly into their sales pitch.

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Strengthening customer relationships and loyalty

In a retail landscape where customer acquisition is increasingly costly, and loyalty is a key challenge, integrating second-hand in stores goes beyond being just another service. It is a unique opportunity to strengthen relationships with customers, giving them a tangible reason to return regularly.

Instead of relying on traditional discount-based loyalty programs, in-store trade-ins become a powerful engagement driver. Every visit is an opportunity to reactivate the customer-brand connection, offer a differentiating experience, and encourage a new purchasing cycle. By giving value to pre-loved clothing, brands align with today’s consumer expectations for sustainability.

The numbers are striking: +121% upsell within three months of launching an in-store trade-in program. More significantly, 70% of store credit issued from trade-ins is used immediately, generating a continuous flow of additional sales.

A real impact on business and the environment

Beyond its commercial benefits, integrating second-hand into stores also has a measurable environmental impact. Every item resold rather than discarded saves an average of 22 kg of CO₂. Far from being anecdotal, this figure highlights the real impact of circular fashion in driving sustainable change.

Consumers are increasingly aware of this. They seek concrete solutions to shop more sustainably but without sacrificing the shopping experience they love. By integrating second-hand directly into their stores, brands offer an alternative that combines accessibility, simplicity, and positive impact.

Why choose Faume to structure this transition?

Building a second-hand offering in stores should not be a burden it should be an opportunity. Faume guides brands through this transition by offering a turnkey solution, designed to integrate seamlessly into existing operations. The goal is to make the process as simple and natural as possible for both store teams and customers.

With a streamlined system, rapid integration within four weeks, and tailored support, Faume helps retailers turn their stores into circular fashion hubs, without disrupting their operations. The result is a win-win scenario: stronger customer loyalty, increased revenue, and a reduced environmental footprint.

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In-store second-hand: an obvious choice for the future

Circular fashion is no longer a passing trend it is a fundamental shift that is reshaping the industry. Brands that adapt now will gain a competitive edge in a rapidly changing market.

Integrating second-hand in stores means choosing a more sustainable, more engaging, and more consumer-connected retail model. It elevates the customer experience and positions brands for long-term success.

With Faume, this transition is not only possible but also highly beneficial.

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Ready to transform your stores into key players in circular fashion? Contact us to learn more.

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