U.S. used clothing fuels affordable retail in El Salvador

By AI, Created 5:01 PM UTC, May 29, 2026, /AGP/ – A new study finds that second-hand clothing collected in the U.S. is a structured supply chain, not waste, and that it anchors affordable retail in El Salvador. The report highlights pricing, import concentration and market organization that help Salvadoran households access everyday essentials despite inflation and high informal employment.

Why it matters: - The study suggests U.S. used clothing is a core input to El Salvador’s everyday consumer market, not an afterthought. - Affordable second-hand clothing helps households cope with inflation and limited formal employment. - The sector also supports local economies through sorting, pricing and retail jobs tied to a structured reuse chain.

What happened: - Full Cycle Resource Consulting conducted the study for Garson & Shaw LLC. - The report examines how El Salvador’s second-hand clothing market operates, from importers with their own sorting facilities to retail networks that mark down prices over time. - The study says the U.S. supplies 96% to 99% of El Salvador’s used clothing imports. - The company made the full Garson & Shaw El Salvador study available through its announcement.

The details: - The study analyzed 21.8 million garments. - 99.56% of those garments were priced under US$15. - The most common price point was US$3. - Some multi-tier outlets sell leftover stock for US$0.15 to US$0.33 per piece. - New clothing imports averaged about US$8.77 per kilogram at the border, roughly four times the cost of used clothing on the same basis. - The report says many businesses are vertically integrated, with ownership of sorting facilities and retail networks. - Those businesses use two-stage grading systems and structured markdown cycles that often run weekly over 8 to 12 weeks. - Average unit prices were highest in the more urban Central region and lowest in the more rural West. - The report links those regional differences to purchasing power and employment formality. - Inflation peaked at 7.25% in the post-pandemic period. - About 65% of employment in El Salvador is in the informal sector.

Between the lines: - The findings challenge the idea that second-hand clothing markets are fragmented or informal. - The report portrays a disciplined business model built around inventory management and price segmentation. - Heavy reliance on U.S. supply makes Salvadoran affordability vulnerable to policy shifts, geopolitical shocks or disruptions in collection and export flows. - That dependence turns trade policy and supply transparency into consumer affordability issues, not just logistics issues.

What’s next: - The study urges policymakers in importing and exporting countries to strengthen supply transparency and responsible trading practices. - The report also calls for protecting the affordability that the reuse sector provides at scale. - Any disruption in upstream U.S. flows could quickly affect prices for Salvadoran households.

The bottom line: - The study argues that U.S. second-hand clothing is a foundational, affordable supply stream for El Salvador’s consumers and local reuse economy.**