Why are thrift store prices going up?

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Jill Jordan from Rico, Colorado, asks:

I understand why the price of typical groceries and clothing have risen — higher fuel prices, tariffs etc. But please explain why the price of items at thrift stores has increased.

While perusing thrift stores across the country, our reader Jill Jordan noticed that shirts that once might have cost a couple of bucks now cost $4, while pots and pans that cost $3 or less are now $5 to $8. Some of the used items she’s found are even similar to their original cost.

Jordan has noticed prices going up at thrift stores in Atlanta; New Orleans; Asheville, North Carolina; and Santa Fe, New Mexico.

Thrifting has gained popularity in recent years, with more than 60% of consumers buying secondhand clothes last year. Secondhand shopping goes through cycles, but this recent cycle of popularity has been "particularly strong," said Jennifer Le Zotte, an associate professor of history at the University of North Carolina Wilmington and author of the book "From Goodwill to Grunge: A History of Secondhand Styles and Alternative Economies."

"I know a lot of young people who are buying and kind of upselling secondhand products through various venues. So I think the ease of being both a consumer and a seller have expanded the market this go-around," Le Zotte said.

But as the market has expanded, the prices of some goods have gone up. Thrifting experts say that secondhand shops have become a lot savvier about the worth of the goods that they have on hand, allowing them to charge more.

"You're less likely to get a really good score," Le Zotte said.

Places like Goodwill and the Salvation Army used to group their selections together, which means you would find ordinary items alongside designer labels. But some stores now have separate categories with higher-priced items, Le Zotte said.

It's a practice that thrifting aficionado Toni Agovino, author of the blog Toni on Thrifting, has also noticed at these shops.

"Now what a lot of thrift shops are doing is they have what they call 'nearly new' or 'new' sections. So they take anything that has a tag on it, and they may put it separately and charge a higher price because they feel, 'Hey, it's never been worn, it's brand new, it's got the tags on,'" Agovino said.

They won't charge as much as the original price, but it'll be higher than it normally would have been, Agovino said.

Thrift shops who have adequate staffing might take the time to do their homework and go on Poshmark or eBay to see what certain items are worth, and then set the price of a good similar to the price they see on these platforms, Agovino said.

"Maybe not necessarily the exact price, but close enough that they're not giving it away," Agovino said.

And some of these stores, like Goodwill, are taking higher-end items and putting them online where they can get top dollar for these goods, Agovino said.

Resellers may also have had an impact, because if they're going to make money by flipping goods, thrift stores might think, "Why shouldn't I make the money?" Agovino said. (Agovino pointed out that this money might be going toward a good cause. While for-profit thrift stores exist, she noted there are charitable shops whose money goes toward food banks and people in need.)

Overhead costs are also up in general for everyone, which may be another reason for the price increases some customers have observed, Le Zotte said. And shoppers expect to pay more with inflation, which is why thrift shops may feel like they can charge more, Le Zotte added.

"The market will bear what it will, and if people stop buying the durables for that price, my guess is that they would go down," Le Zotte said.

When asked how Goodwill sets its prices, a company spokesperson said "each Goodwill organization works to responsibly set prices based on local market conditions, item quality, and shopper demand."

Marketplace also reached out to the National Association of Resale & Thrift Shops but did not get a response by publication time.

Even though prices have gone up at these stores, are thrift stores still a good deal?

"Oh my God, yes," Agovino said.

You can still find goods and clothing, like a pair of jeans, that are a fraction of the price, she noted.

"Jeans could be anywhere from five to $10, depending on the thrift store," Agovino said. "I would never buy jeans new."