
Resale Is Reshaping Retail. Here's How Property Managers Can Lead The Shift
The future of retail isn't just about what's new, it's about what comes next. As more consumers reconsider their relationship with consumption, brands are rethinking the entire product lifecycle. And they're doing it in-store with an increased adoption of circular retail.
Circular retail—defined by resale, trade-in, upcycling, and repair programs—has moved far beyond fringe. It's now a high-growth, brand-backed business strategy. In 2023, the U.S. recommerce market was valued at $188 billion and is projected to grow to $276 billion by 2028 according to a report from NetChoice. For property managers, this marks a moment of opportunity: the chance to meet consumer expectations, attract next-generation tenants, and create value by supporting more sustainable, experience-driven retail models.
Circular models are becoming the new standard
Where resale once lived on the fringes, today's major retailers are claiming the model. Secondhand shopping is being redefined as an intentional, branded experience that resonates with the values of a younger generation.
Brands like Madewell, DSW, REI, Lululemon, Urban Outfitters, and H&M have all launched in-store programs to collect, resell, and recycle goods. What began as a sustainability play has evolved into a core retention and revenue strategy.
Consumers—especially Gen Z—are leading this charge. A recent report from Statista notes that 42% percent of secondhand shoppers are Gen Z, citing affordability, sustainability, and the thrill of finding one-of-a-kind items. According to Placer.ai, thrift store visits rose 30% between Q1 2019 and Q1 2024, reinforcing growing demand for curated, in-person resale experiences. For tenants, the appeal of physical resale lies in its simplicity: no shipping, no listings, and instant credit or payouts.
Recommerce is a loyalty engine
Branded resale programs are redefining customer engagement. When customers can return, trade in, and rebuy within the same brand in-store, they return more often and spend more.
The next wave of resale is about value recovery, not markdowns. Upcycling allows retailers to reuse inventory in a way that increases its value. Retailers can resell owned inventory at higher margins than traditional discounting, while retaining full control over product quality, pricing, and experience.
This model fosters natural reengagement loops through repeat visits and customer trust. Shoppers are rewarded for keeping products in circulation and extending its lifecycle, encouraging loyalty and long-term value. Property managers that enable these experiences through smart tenant selection and physical support become essential partners in this growing ecosystem.
Space constraints are creating circular opportunities
The slowdown in new retail development has made space-efficient formats more attractive, heightening the relevance of circular retail. Since 2017, annual deliveries of new retail space have dropped nearly 50%, from 72 million to 39 million square feet according to research from CoStar. New tariffs, rising material costs, and financing challenges have made new construction more expensive and less viable.
Circular retail programs offer a timely solution. Pop-up events, trade-in events, repair cafes, and resale activations typically require minimal buildout and can thrive in small, adaptable footprints. For property managers, these concepts offer a way to reinvigorate underused areas, attract community engagement, and increase foot traffic with minimal capital investment.
To support this shift, property managers can:
These steps help attract ESG-conscious consumers, increase dwell time, and strengthen a property's competitive position.
Resale done right: From pop-up to destination
Some brands are going even further, creating immersive circular experiences that extend from product to place.
For example, Coachtopia, a circular sub-brand from Coach, uses sustainable design as part of its merchandising strategy, including upcrafted furniture, modular displays, and recycled materials that reflect the brand's sustainability ethos. Rotating artist collaborations and limited-edition drops keep inventory fresh while aligning the store experience with its circular mission: a sustainably minded destination that encourages discovery and return visits.
Other successful resale retail concepts include:
Supporting circular retail programs can help retailers build loyalty while giving property managers new ways to generate revenue and maintain relevance in a competitive market.
Circular retail is a long-term value play
Don't brush off circular retail as a passing trend. Recommerce is becoming a defining feature of modern retail, one that links sustainability, profit, and experience in ways that resonate with consumers and brands alike.
Property managers have an essential role to play in enabling this shift. By supporting circular retail as part of a long-term strategy, they can improve tenant performance, attract engaged consumers, and strengthen the value of their portfolios.
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