After a hesitant start to the year, Swedish second-hand retail is showing clear signs of recovery. During the third quarter, used goods turnover amounted to 4.8 billion Swedish krona, representing an increase of 7 percent compared to the same period last year. This is shown by Swedish Trade’s latest Pre Loved indicator.
The upturn comes after Ehandel.se reported earlier this autumn on how circular commerce online turned upwards. Although September ended somewhat weaker, the summer boost helped to recoup a large part of the year's earlier loss.
Sports and Leisure Soar by 66 Percent
The single strongest growth driver during the quarter was used sports and leisure products. The category soared by as much as 66 percent compared to last year, reaching a turnover of 305 million Swedish krona.
Used media such as books, films and music also increased sharply by 39 percent, while toys and children's items grew by 21 percent. However, clothing and fashion remain the market's undisputed giant with a turnover of 1.6 billion Swedish krona during the quarter, an increase of 10 percent.
Maria Mikkonen, Chief Economist at Swedish Trade, views the quarterly development positively:
The third quarter gives a brighter picture of the second-hand market than we saw in the first half of the year. Several product categories are increasing and some of the year's earlier loss has been recovered. September was admittedly weaker, but that does not detract from the improvement for the quarter as a whole. We hope that the positive development will continue during the last quarter of the year.
Channel Shift in September: Stores Rise
Looking at the whole year, it is still the internet that dominates circular commerce, with e-commerce accounting for 69 percent of total sales during the first nine months of the year. However, September saw an unexpected shift between channels.
While online sales fell by 14 percent during the month, sales in physical second-hand stores increased by 31 percent. The stores thus accounted for just over a third of the month's total turnover.
Maria Mikkonen points to the important role of the stores:
It is a significant show of strength that the stores are doing well even in a month when the second-hand market as a whole is declining. The increase was not enough to offset the decline online, but shows that physical retail has an important role to play even in the second-hand market.