Goodwill goes upmarket: Non-profit opens trendy boutiques selling designer goods for less - along with 'hipster flannel and vinyl'

Written by Alexandra Klausner - Daily Mail, August 20, 2015

Non-profit giant Goodwill, which earns about $4 billion annually from its 2,900 stores, has opened up a number of upscale boutiques across the country aimed at attracting younger shoppers.

Luckily for fans of the outlet, the prices will remain low. Stuart Weitzman shoes that would normally go for $350 at Bloomingdales cost just 12.99 at the new Hunting Beach, California outlet called the O.C. Goodwill Boutique.

The LA Times reports that luxury outlets are the result of a national initiative by the non-profit provider of employment services to sell more clothing.

The Orange County Group opened four high-end stores in the last two years and they plan to open even more stores in southern parts of the country where rents are higher and the residents are wealthier.

'The boutiques set us apart,' said local Orange County President Frank Talarico Jr.

'This is a really nice way to expand. We are definitely not going to stop.'

About 60 luxury boutiques have opened nationwide over the past four years after Goodwill Industries International encouraged its regional organizations to debut the designer outlet.

Thrift stores like Goodwill thrives even when the economy is troubled and the company wants to attract as many shoppers as they can and keep them before those Americans go back to buying retail.

A report published by IBIS World in 2014 found that the thrift industry will likely decline as the economy improves but young shoppers will still be attracted to stores that sell 'vintage' or 'unique' clothing.

'They need to give people a reason to go into thrift stores again, because they have the disposable income to shop where they want,' said IBIS World analyst Andrew Alvarez.

The first Orange County boutique which opened in Tustin in 2013 is selling big name brands such as Prada, Burberry, and Chanel. 

Goodwill also opened a store in Anaheim boutique will a 'rare' collection of flannel shirts and vinyl records aimed at attracting hipster types.

'When you walk into one of our boutiques stores ... the typical reaction we receive is, "This feels like Abercrombie" or "This is like Anthropologie,"' Talarico said.

Even though the goods at many of the stores are nicer they aren't all designers.

Shoppers can find a 'like new' discounted shirt from H&M and pay $3.99 which isn't not far off from the original price of the item.

By moving to more upscale neighborhoods Goodwill like Orange County where the median income is $75,000 they can attract better donations. 

However, landlords may not want to sell Goodwill space because the often prefer retailers who will attract customers not looking for a bargain.

'A lot of developers, on a really good center, might not consider a Goodwill concept,' he said.

When the Tustin boutique opened in 2013, local property owners complained because they thought it might 'downgrade' the area. Now the store is a neighborhood favorite. 

'It was like an eight-year process to get into the city of Tustin,' said Corrine Allen, vice president of retail operations for the Orange County organization.

Due to increase in quality goods at the new and improved stores, customers spend $5 to $9 more than the $15.45 shoppers spend at their regular stores.

More money means Goodwill can give more services to clients, many of whom are down on their luck and cannot hold or get a job.

'The only reason retail is relevant is because we are using the money to serve,' Talarico said.

Newport Beach-based designer Mark Pomerantz supports Goodwill and encourages his customers to donate their old suits to the store when they come in to get a new wardrobe.

'This,; he said, 'is the right spot to donate.'