According to Swedish Trade's Pre Loved-indicator, sales of second hand goods amounted to just over one billion Swedish krona in March. This represents a decrease of 12 percent compared to the same month of the previous year. Looking at the entire first quarter, sales decreased by nearly 15 percent.
The decline is noticeable in all sales channels. During the quarter, sales online fell by 14 percent and in physical stores by 18 percent. Isolated to March, e-commerce declined by just over 6 percent, while physical retail decreased by 22 percent.
However, the development differs between different product categories. Second hand fashion increased by 2 percent during the quarter and recorded an increase of 18 percent in March. At the same time, sales of furniture and home furnishings fell by 22 percent during the quarter, and consumer electronics declined by over 30 percent.
It was a weak start to the year for the second hand market, where sales decreased and consumers remained cautious. At the same time, there are glimmers of hope. The proportion of people who bought used goods in March was slightly higher than last year, says Maria Mikkonen, chief economist at Swedish Trade.
New Network To Establish Industry Standards
To structure the growing market and manage the industry's challenges, Swedish Trade is now launching the "Pre Loved" initiative. The network brings together actors in the circular trade with the aim of creating common rules of the game and a standardized model for assessing the condition of products.
The chairman of the network will be Martin Hallander, CEO of the clothing chain Arkivet.
Interest in second hand has never been greater. Consumers want to shop sustainably, find unique products and make smart choices at the same time. At the same time, the industry lacks common structures, says Martin Hallander.
A central part of the network's mission will also be to drive business policy issues. Swedish Trade points to the double taxation of used goods as an obstacle to market growth.
Today, used goods are taxed several times, which hinders the market. Lower VAT on second hand goods is a prioritized issue in Swedish Trade's election manifesto and could help to strengthen both supply and demand, says Maria Mikkonen.
Carl Reutercrona, business policy expert at Swedish Trade, acts as secretary for the network and sees room for the market to expand if the right conditions are in place.
With better structures to get more people to both buy and sell, the market can grow significantly, says Carl Reutercrona.