In a strategic departure from the ‘fast-fashion’ frenzy, resale giant Depop is capitalizing on a fundamental shift in Gen Z behavior: the transition from algorithmic churn to personal authorship. According to Depop’s 2026 Trends Report, ‘The Edited Self,’ consumers are actively rejecting micro-trends in favor of ‘repeatable staples.’ This intentionality is not merely a stylistic pivot but a high-velocity business driver. Amidst a broader US retail landscape characterized by low single-digit growth and tariff-induced price hikes, Depop’s US market grew by 54 per cent in 2025. By prioritizing ‘Modern Uniforms’—sharp tailoring and dependable workwear—over disposable aesthetics, the platform has successfully positioned itself as a hedge against economic volatility.
Data-Driven Resilience and AI Integration
The fiscal impact of this ‘purposeful style’ is substantial. Depop’s Gross Merchandise Sales (GMS) hit $249.6 million in Q2, FY25, a 35.3 per cent Y-o-Y increase. To sustain this momentum, the platform is integrating "agentic commerce," using AI-powered tools that transform a single product photo into a professional listing. ‘We are seeing a cultural recalibration where taste is the new currency,’ says Peter Semple, CEO, Depop. This technological edge addresses the primary challenge of the resale sector: scalability. As 75 per cent of US shoppers now trade down to secondhand alternatives to offset inflation, Depop’s ability to offer "archival" reliability at a fraction of the cost of new apparel is reshaping the competitive hierarchy of the $82 billion resale market.
Recommerce as a strategic retail pillar
Beyond the digital storefront, Depop’s expansion into physical "pop-ups" in New York and other urban hubs reflects a move toward a ‘phygital’ retail network. This strategy leverages the ‘treasure hunt’ experience that 60 per cent of global consumers now seek when shopping secondhand. The environmental narrative remains a potent conversion tool; with 3 out of 5 Depop purchases displacing the need for brand-new items, the platform is converting "eco-anxiety" into brand loyalty. As traditional retailers struggle with overproduction, Depop’s model—fueled by a community of 43.5 million users - proves that in 2026, the most newsworthy growth is found not in the new, but in the newly rediscovered.
Depop is a global community-powered marketplace specializing in affordable, circular fashion for Gen Z and Millennials. Operating primarily in the UK and US, the Etsy-owned platform hit a peak GMS of nearly $800 million recently. Its 2026 strategy focuses on ‘Where Taste Recognizes Taste,’ scaling through AI-enabled listings and physical New York-centric retail experiences to dominate the booming global recommerce sector.
