Thinking of Buying a Secondhand Clothing Business in Australia? Here Are 3 Vital Questions to Ask

The Australian antique and used goods retail industry — which includes secondhand clothing — is valued at $4.9 billion in 2025, employing more than 12,000 people across 2,300 enterprises.

Profit margins average 8.4%, producing $412 million in annual profit, and revenue is forecast to grow by 2.1% annually through 2031, reaching $5.4 billion.

Rising interest in sustainability and the circular economy has transformed secondhand shopping from a necessity into a lifestyle trend. Cost-of-living pressures, combined with shifting consumer values, have driven Australians to thrift and vintage stores in record numbers. Platforms such as Vinnies, Salvos, and Savers are now expanding online and leveraging social media to reach new, fashion-conscious audiences.

1. Is the Business Financially Sustainable and Profitable?

Why It Matters:

While margins in secondhand retail are lower than traditional fashion retail, the sector benefits from low stock acquisition costs and steady consumer demand. Profitability depends on efficient operations, quality control, and strong marketing to attract both donors and buyers.

What to Check:

• Revenue and margins – Benchmark the business against the 8.4% industry average to assess performance and potential returns.

• Cost structure – Labour costs represent roughly 18% of revenue, while purchases and donations vary depending on whether stock is sourced or gifted.

• Inventory quality – Donation-driven stores such as Vinnies and the Salvation Army enjoy low acquisition costs but must invest in sorting, cleaning, and presentation to maximise resale value.

• Digital sales channels – Online reselling platforms now account for a growing share of total sales, particularly for curated vintage fashion. Businesses with strong e-commerce integration typically achieve higher turnover.

2. How Competitive Is the Business’s Market Position?

Why It Matters:

Competition has intensified as consumer interest in thrifted fashion grows. New entrants and online sellers are reshaping how customers shop, with digital visibility now as important as store location.

What to Check:

• Market share – Major operators like Cash Converters, Salvation Army, and St Vincent de Paul collectively hold less than 20% of the market, leaving room for niche independents.

• Brand reputation – Community engagement, transparency, and environmental messaging enhance loyalty among eco-conscious consumers.

• Online presence – Retailers investing in curated online collections, such as Vinnies Finds, are outperforming competitors and appealing to younger demographics.

• Local demand – NSW, Victoria, and Queensland generate over 75% of sales, driven by dense populations and fashion-forward urban markets.

3. Is the Business Aligned with Industry Trends and Future Growth?

Why It Matters:

Sustainability, affordability, and digital innovation are redefining the secondhand retail landscape. Businesses that adapt to these shifts will secure long-term growth.

What to Check:

• Sustainability integration – Consumers are increasingly guided by eco-conscious values. Highlighting waste reduction, recycling, and ethical sourcing strengthens brand identity.

• Technology and online marketplaces – AI-driven pricing tools, authenticity verification, and omnichannel retailing are boosting profitability across the sector.

• Community partnerships – Collaborations with charities or local councils can improve donation supply and boost community trust.

• Fashion and social media influence – TikTok and Instagram have made thrift styling aspirational, helping secondhand retailers attract Gen Z and Millennial customers.

Ready to Invest in a Thriving Secondhand Clothing Business?

With sustainability trends, affordability pressures, and digital growth driving record consumer demand, Australia’s secondhand clothing industry offers both resilience and opportunity.

Success depends on creative curation, strong digital engagement, and commitment to sustainability values that resonate with today’s conscious consumer.

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