Savers Value Village is pioneering a new frontier in the booming thrift market by deploying an artificial intelligence-powered platform, ThriftIQ, to revolutionize product pricing. The company exclusively shared with CNBC that this sophisticated tool aims to streamline the complex process of pricing items across its extensive men’s and women’s apparel selections, fostering greater consistency and efficiency.
“We are witnessing clear sell-through improvements, larger basket sizes, and our new store openings are experiencing more favorable ramp-ups, all while achieving enhanced profitability,” stated CEO Mark Walsh in an interview.
The transformative power of ThriftIQ is already evident. The platform has been implemented in 58 pilot stores, successfully pricing over 25 million items. Savers anticipates this figure to double by year’s end, underscoring the rapid scalability of the AI solution.
Savers, a retail giant with 375 stores as of the second quarter, processes an astonishing volume of over 1 billion pounds of reusable goods annually. The development of ThriftIQ represents a strategic partnership with data science and technology consultancy Kaizen Analytix, leveraging Savers’ proprietary data sets that have been meticulously cultivated over the past two years.
“It’s important to note that this is not dynamic pricing. Once a garment is priced and tagged, that price remains fixed,” Walsh clarified, emphasizing a commitment to predictable customer pricing. The overarching objective of ThriftIQ is to offer customers more transparent and consistent pricing, while maintaining average prices at or below current levels, consistently positioning them between 40% and 70% lower than traditional retail prices.
ThriftIQ signifies a pivotal advancement in Savers’ overarching strategy to modernize and elevate its operational backbone. The company plans to roll out this cutting-edge platform across its U.S. and Canadian locations through early 2028, signaling a significant investment in digital transformation.
Walsh further elaborated that the AI tool is not intended to replace manual labor but rather to augment the productivity of store associates, enabling them to focus on higher-value tasks. “Savers is fundamentally transforming the thrift experience through innovation, and I am incredibly optimistic about the business’s current trajectory,” he remarked.
This strategic deployment coincides with a remarkable surge in the secondhand retail sector. The current macroeconomic climate, characterized by elevated inflation, waning consumer confidence, and increasingly price-sensitive shoppers, is creating a fertile ground for thrift’s growing appeal.
“We are capitalizing on powerful secular trends within this sector. Thrift has transitioned, and continues to transition, into a mainstream retail choice. We observe this adoption across younger demographics and even more affluent customer segments,” commented Chief Financial Officer Michael Maher. “Crucially, we are infusing significant investment, advanced technology, and a culture of innovation and execution into this evolving landscape.”
Savers also reported robust second-quarter financial results, showcasing a 7.4% increase in total net sales, reaching $448.2 million. Comparable store sales saw a healthy uptick of 4.4%. The company posted a net income of $21.6 million, or 14 cents per share, for the quarter, a notable improvement from the $18.9 million, or 12 cents per share, reported in the prior-year period.
Maher further highlighted that Savers has achieved its third consecutive quarter of year-over-year growth in earnings before interest, taxes, depreciation, and amortization (EBITDA). The company has incorporated the anticipated impact of ThriftIQ into its updated 2026 guidance, projecting a return to a “high-teens adjusted EBITDA margin within the next three years.”
“This represents merely the latest chapter in our ongoing transformative innovation journey,” Maher concluded. “It is a cornerstone of our long-term strategic plan, and our commitment to continuous innovation remains unwavering.”
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