Lexington, Ky. - These days, it seems everyone is looking for good news to report. Recently, for many reporters - - sometimes nearly 30 a day - - the search begins and ends with Adele Meyer, executive director of the National Association of Resale and Thrift Stores (NARTS), based in St. Clair Shores, Mich. Against the backdrop of a floundering retail industry, the consignment, resale and thrift store sector is not only staying afloat in the widening sea of economic despair - - it actually appears to be flourishing because of it.
According to Meyer, the resale industry is one of the few recession-proof segments of retailing. The reasoning is simple - - while people may cut back on discretionary spending during slow economic times, they will not cut shopping out altogether, especially this time of year. Thus, shoppers are migrating to the places where they can get the most bang for their buck - - and resalers are reaping the benefits.
In light of increased media attention on the resale industry, NARTS recently surveyed their members, asking them to compare sales for September and October 2007 to September and October 2008. Meyer posted the following results on the NARTS Web site on November 24:
Of the 182 respondents, 74.2 percent said sales increased - with an average increase of approximately 35 percent. The survey revealed that 89.9 percent of the stores experienced an increase in new customers and 79.3 percent had an increase in new suppliers (consignors/sellers/ donors) with 54.7 percent reporting a higher quality of incoming merchandise.
The increase in September & October sales exceeded previous survey results for August sales when 62.5 percent of respondents experienced sales increases from the previous August-with an average increase of approximately 30 percent. In comparing the time period of January through August 2008 to the same time period in 2007, 66.2 percent said sales increased-with an average increase of approximately 35 percent.
How do these numbers translate locally?
Lexington is home to a variety of used merchandise stores, and all of the stores interviewed for this article reported to be faring well despite the economic downturn, if not directly benefiting from it.
"I hear the new stores are having a lot more trouble than we are," said Julie Selby, owner of Room Service. She's seen an influx in customers recently who previously might not have considered buying used items. "You know, we're not swamped. But we are staying steady."
Mike Brown, who owns the children's consignment shop Re-Kid (formerly Children's Orchard), estimates a 15 percent increase in business for his store this year. Owners of the vintage store Street Scene said that business has increased every month since they opened in July 2007.
"Every month we're in business, we get discovered by more and more people," said Street Scene co-owner Terri Wood, who relies heavily on word-of-mouth, and traffic from her adjoining business Coffee Times, to promote her store. This January, Street Scene will be expanding the store to accommodate a growing clothing section.
Meyer will tell you this is a common trend for resale shops. "Every day I hear of a member that's opening up a new location," she said. NARTS reports that nationwide, resale, consignment and thrift shops are opening at an increase of about 5 percent a year. "NARTS members have also been expanding and opening additional locations. Some members are increasing their space to include specialty categories such as bridal, sporting goods, teens or furniture," Meyer wrote in a recent press release.
Brown relates his increase in business directly to the economic downturn.
"People are trying to save money, and they know they can come to Re-Kid and find good deals," he said, also noting that many of his customers can afford to buy new versions of the items he sells - - children's clothing, furniture, and equipment - - but they prefer to buy them used for love of a bargain.
What's the appeal?
Looking for that bargain might be the number one driving force behind the overall increase in resale business, but it's far from the only reason people shop secondhand.
"I think people are kind of going green, where they're wanting something that's not new," said Selby. Room Service, which specializes in consignment furniture and home furnishings, has seen lots of new faces recently - - both shoppers and consignors. "I think [the economic downturn] has kind of made people want to clean out," she added. "Even if they don't really need the money that badly ... it's time to get serious, it's time to clean house and get rid of some of these things."
The green factor is a sentiment echoed by Kathryne Wiseman, co-owner of Street Scene.
"People are very, very in tune with reusing," she said. "I think it's catching on."
While some resale shoppers are being ecologically frugal and others economically frugal, still others simply love the hunt. Thrift-store shopping is a relatively inexpensive hobby for some people - - secondhand stores often offer a greater variety of unique products, and finding that perfect sought-after item used can be more rewarding than finding it new. And often, the aesthetic and sentimental qualities of vintage items simply cannot be duplicated with new commercial goods.
"Some people are taking a little walk back in time and they are reliving their life as they walk through here," said Wood. Street Scene specializes in "all things vintage," with merchandise that includes (mostly funky) furniture, clothing, accessories, dishes, rugs, etc. from the 50s, 60s and 70s.
Street Scene's customer base ranges from teenagers to 80-somethings. The emotional draw of their items runs particularly high with the older shoppers. "They love to see [these vintage items], and they like to tell you about what they had," said Wiseman. But reasons for stopping in go beyond sentimentality. "They use us for practical purposes, like, they will buy our Pyrex dishes and they'll take them home and use them. Or some of the ladies buy the hats because they still wear them to church on a regular basis." This practicality comes into play for many shoppers considering the craftsmanship of their purchase as well.
"Where furniture is concerned, I think a lot of people choose [older] furniture because it's really well built," said Wood. Selby agreed, noting that many furniture shoppers are looking for "something that's going to hold up rather than something that's pressed wood that you have to put together out of a box."
Whatever their reasons may be, shoppers have shown their affinity to the resale sector - - and the industry's resilience through the current economic struggle has shown us that it's not going anywhere anytime soon.