February 4, 2026
wolterke/Depositphotos.com
Can Anything Derail Goodwill’s Good Fortunes?
Nonprofit retailer Goodwill enjoyed a record-setting year, according to a Modern Retail report from Julia Waldow, with the company poised for an even more lucrative 2026.
Pulling in a whopping estimated $7 billion in revenue last year — the “best year” on record for the retailer, which also involved 300 million transactions and $450 million in gross merchandise value — according to remarks shared with Waldow by COO David Eagles, Goodwill is further poised to have its “biggest year yet” in 2026 as it opens ~100 new locations.
While those store openings will be offset by strategic closures, per Eagles, the majority of these will be large-format stores which emphasize the strong treasure hunt proposition Goodwill currently offers its customers. Regarding those customers, Eagles offered the following evaluation.
“What we’ve observed in some of our data is that, at the top end, people are being really selective. Everywhere else, in most of our segments, value matters more than ever. And because of that, secondhand is one of the fastest-growing places that consumers are going,” he began.
“We’ve seen a lot of momentum, both from where we are in the economy, but also, there’s been a multi-year trend where secondhand has moved from being a niche choice to a mainstream choice, especially for younger consumers, which is really exciting,” he added.
Other notable excerpts coming from Eagles regarding Goodwill’s future:
- Gen Z and millennials returning to thrift: Eagles suggested that secondhand is no longer second-tier product as far as younger consumers are concerned. He cited a stat, saying more than two-thirds of millennials and zoomers purchased at least some secondhand apparel in 2025.
- Donations, transactions, and revenue support the mission: For Eagles, the record transactions and revenue numbers (as well as 120 million donation counts), bolster a bottom-line record margin dollars. “Now, we don’t mean margin in the for-profit sense. Our margin goes to our mission, and that’s supporting 2 million people per year and helping 130,000 or so [people] get placed into sustainable careers,” he said.
- Goodwill welcomes all donations: With Waldow intimating that a surplus of donations could flood Goodwill beyond capacity, Eagles shrugged this off, suggesting instead that the company was equipped to repurpose or recycle most donations. “There’s value in moving our goods to different places. Winter coats are needed in certain areas. We’re getting increasingly better with our connected network on those things,” he added.
Finally, Eagles pointed toward a developing strategy marked out between Goodwill and brands, producers, and corporate partners — primarily, those with “issues with return volumes.” The COO seemed to imply that these unnamed partners, whether due to a sales strategy on returned product or regulatory pressure surrounding end-of-life product, might turn to Goodwill as a buyer or donation recipient.
“We are in really meaningful conversations with a lot of larger retailers and brands on some of these issues. We’re co-developing some go-to-market strategies, and we’re in an early pilot mode to figure that out,” Eagles concluded.
BrainTrust
Nicholas Morine
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Discussion Questions
Given the very strong financials delivered by Goodwill, what headwinds could you see derailing its positive momentum?
Do you believe Goodwill will soon strike significant partnerships with brands and producers to divert returned or end-of-life product? What would this look like, in your opinion?
Poll
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Goodwill is benefitting from the surge in secondhand. This has been building for a long time and is driven by multiple factors including sustainability, treasure hunting, and value-seeking. The latter helped push resale to a record year in 2025 as more people bought and sold used goods to save, and make, money. While the resale rally still has room to run, the biggest risk for Goodwill is competition from newer players. In stores there’s also a risk from higher prices and less treasure. In some locations, there’s a big growth in flipping: professionals buying products to refurbish and resell at a profit, which can leave everyday shoppers with less choice.
The financial results are impressive, but the work Goodwill does in the community far exceeds this. Without a doubt, the re-use/ recycle trend is ‘mega’ by definition, and there’s little sign of it slowing anytime soon. Brands should seriously consider partnering with Goodwill for returns/end of life product. Not only does Goodwill do remarkable things for under-employed adults but they are also leading in environmental and sustainability efforts. I have the privilege of working with Goodwill Industries of Alberta, and I am very proud to be their partner.
The biggest risks to momentum are less about demand and more about execution.
Goodwill could face headwinds if pricing perception drifts too far from its core value promise, especially as inflation-sensitive shoppers scrutinize every purchase.
Inconsistent in-store experiences across locations also matter more at scale, because operational drift can quietly erode trust even when traffic stays strong. Supply quality is another pressure point, since donations fluctuate with economic cycles and directly impact the shopper experience.
With disciplined pricing, tighter operational standards, and a renewed focus on the mission customers believe in, Goodwill’s future would seem to be one of upside potential.
Goodwill’s recent performance is undeniably strong, with record revenue exceeding $7 billion and expansion plans underway — proof that value-driven resale and sustainability narratives continue to resonate with consumers. But even with that momentum, several headwinds could slow the trajectory. Increased competition from digital resale platforms and specialty thrifters is fragmenting market share, while questions about pricing perception and assortment consistency can erode loyalty if shoppers perceive that the “treasure hunt” no longer delivers compelling value. There’s also a macro reality at play: Goodwill tends to benefit when consumers feel financially pressured — meaning that a strong economic rebound or improved discretionary confidence could shift some demand back toward full-price retail. In short, Goodwill’s strength today is partially tied to broader economic conditions that won’t remain static forever.
I do believe we’ll see more structured partnerships between Goodwill, brands, and producers, especially around returns, excess inventory, and end-of-life product — and in many ways, that evolution is already underway. The organization has been building alliances with brands, recyclers, and circular-economy partners to manage textile waste and develop new reuse or recycling pathways. This could evolve into models in which retailers route certain returned items, overstock, or unsold goods directly into Goodwill’s ecosystem—extending product life cycles, reducing landfill waste, and reinforcing sustainability narratives that resonate strongly with younger shoppers. Programs such as electronics recycling partnerships have already demonstrated that this type of collaboration can operate at scale.
What that might look like in practice is less about traditional liquidation and more about circular retail infrastructure — branded resale collections, traceability programs, and AI-assisted sorting or pricing to determine whether an item is resold, recycled, or repurposed. For brands, this approach offers both environmental credibility and a controlled secondary channel; for Goodwill, it unlocks more predictable supply and deeper integration into the broader retail ecosystem. The opportunity is significant, but it will require balancing mission, margin, and brand equity—ensuring that partnerships enhance Goodwill’s value proposition without reducing it to just another off-price outlet.
$7 billion?!?! Oh my….
With that in mind, yes there are a few potential issues:
(1) competition: as low price has become the mantra for ever more retailers
(2) perception: much of Goodwill’s…well goodwill likely stems from the idea that it’s just a “poor little charity”; that will diminish the more people come to see it as “just another retailer”; I see the problem becoming acute if they were to team-up with actual retailers, so they should tread carefully.
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Goodwill is benefitting from the surge in secondhand. This has been building for a long time and is driven by multiple factors including sustainability, treasure hunting, and value-seeking. The latter helped push resale to a record year in 2025 as more people bought and sold used goods to save, and make, money. While the resale rally still has room to run, the biggest risk for Goodwill is competition from newer players. In stores there’s also a risk from higher prices and less treasure. In some locations, there’s a big growth in flipping: professionals buying products to refurbish and resell at a profit, which can leave everyday shoppers with less choice.
The financial results are impressive, but the work Goodwill does in the community far exceeds this. Without a doubt, the re-use/ recycle trend is ‘mega’ by definition, and there’s little sign of it slowing anytime soon. Brands should seriously consider partnering with Goodwill for returns/end of life product. Not only does Goodwill do remarkable things for under-employed adults but they are also leading in environmental and sustainability efforts. I have the privilege of working with Goodwill Industries of Alberta, and I am very proud to be their partner.
The biggest risks to momentum are less about demand and more about execution.
Goodwill could face headwinds if pricing perception drifts too far from its core value promise, especially as inflation-sensitive shoppers scrutinize every purchase.
Inconsistent in-store experiences across locations also matter more at scale, because operational drift can quietly erode trust even when traffic stays strong. Supply quality is another pressure point, since donations fluctuate with economic cycles and directly impact the shopper experience.
With disciplined pricing, tighter operational standards, and a renewed focus on the mission customers believe in, Goodwill’s future would seem to be one of upside potential.
Goodwill’s recent performance is undeniably strong, with record revenue exceeding $7 billion and expansion plans underway — proof that value-driven resale and sustainability narratives continue to resonate with consumers. But even with that momentum, several headwinds could slow the trajectory. Increased competition from digital resale platforms and specialty thrifters is fragmenting market share, while questions about pricing perception and assortment consistency can erode loyalty if shoppers perceive that the “treasure hunt” no longer delivers compelling value. There’s also a macro reality at play: Goodwill tends to benefit when consumers feel financially pressured — meaning that a strong economic rebound or improved discretionary confidence could shift some demand back toward full-price retail. In short, Goodwill’s strength today is partially tied to broader economic conditions that won’t remain static forever.
I do believe we’ll see more structured partnerships between Goodwill, brands, and producers, especially around returns, excess inventory, and end-of-life product — and in many ways, that evolution is already underway. The organization has been building alliances with brands, recyclers, and circular-economy partners to manage textile waste and develop new reuse or recycling pathways. This could evolve into models in which retailers route certain returned items, overstock, or unsold goods directly into Goodwill’s ecosystem—extending product life cycles, reducing landfill waste, and reinforcing sustainability narratives that resonate strongly with younger shoppers. Programs such as electronics recycling partnerships have already demonstrated that this type of collaboration can operate at scale.
What that might look like in practice is less about traditional liquidation and more about circular retail infrastructure — branded resale collections, traceability programs, and AI-assisted sorting or pricing to determine whether an item is resold, recycled, or repurposed. For brands, this approach offers both environmental credibility and a controlled secondary channel; for Goodwill, it unlocks more predictable supply and deeper integration into the broader retail ecosystem. The opportunity is significant, but it will require balancing mission, margin, and brand equity—ensuring that partnerships enhance Goodwill’s value proposition without reducing it to just another off-price outlet.
$7 billion?!?! Oh my….
With that in mind, yes there are a few potential issues:
(1) competition: as low price has become the mantra for ever more retailers
(2) perception: much of Goodwill’s…well goodwill likely stems from the idea that it’s just a “poor little charity”; that will diminish the more people come to see it as “just another retailer”; I see the problem becoming acute if they were to team-up with actual retailers, so they should tread carefully.