‘Thrill of the hunt’: Why bargain stores succeed as traditional retailers stumble
Written by Hannah Madans – The Orange County Register, September 14, 2017
Huntington Beach resident Janeane Pittman is a master shopper. After losing weight, she began finding unique items at bargain prices at local thrift, resale and consignment stores.
Pittman, who is a wardrobe stylist, decided that instead of just looking for herself at thrift stores, she would look for clients as well.
She created Thrift Boxes — selections of two or three mix-and-match outfits — for her Designing From My Closet clients. Her business also broadened to include client shopping trips to local thrift stores and Orange County Thrift Shopping Meetups.
“I’m very focused on fashion and style and women looking their best without spending a whole lot of money,” Pittman said.
Pittman isn’t the only one shopping at thrift stores. At a time where traditional department stores including JCPenney, Sears and Macy’s are downsizing, the resale industry is in a period of growth.
According to the National Association of Resale Professionals, the number of thrift/consignment/resale stores has grown 7 percent a year for the last two years. There are more than 25,000 thrift, consignment and resale shops in the U.S.
“People love a bargain,” said Raymond Sfeir, director of the A. Gary Anderson Center for Economic Research at Chapman University said.
“Whether it’s at a thrift store or somewhere else, people love getting a deal,” he said. “Those who did it before are continuing to do it. During the recession, many people lost their jobs. Some of those people tried these stores for the first time and got used to going there and have continued to do so.”
Adele R. Meyer, executive director of NARTS, said the growth that started during the recession will likely continue.
“It always grows during a slow economy and people are keeping all the customers they gained. Ecology recycling is a major factor in driving people to this industry. People would rather consign their unwanted items then add to the waste stream,” she said.
Upscale stores
In an effort to lure customers, resale stores are improving their storefronts.
Take the effort at Goodwill, which has added boutique stores in Lake Forest, Tustin and Huntington Beach and is opening one more in San Juan Capistrano this fall.
“It doesn’t look or feel like a Goodwill but like an Anthropologies or Abercrombie,” Goodwill’s of Orange County President and CEO Frank Talarico, Jr. said. “We hired visual specialists and changed the way that shoppers think about the Goodwill shopping experience.”
Rare by Goodwill in Anaheim, a different Goodwill boutique concept, is more reminiscent of a trendy boutique than an average Goodwill. The store is neatly organized and has trendy, one-of-a-kind fixtures to give the shop a youthful vibe.
Shoppers will find designer goods at deep discounts. The Goodwill staff curates the best of its donations for its boutiques.
“The cool thing about the boutique is you have a store contrary to what you think you would find at Goodwill,” Talarico said. “You will find Prada and Burberry and Calvin Klein. And you’re going to find the best quality of each.”
“It’s hip, it’s unique. The big-box thrift store of the past, you will see it to a lesser extent, but the future of this industry is to exceed the expectations of the shopping industry.”
Meyer agreed that the stereotypical resale store is changing.
“People used to think they were dark, murky stores, but that is long gone,” Meyer said. “Many of these stores outshine retail boutiques in both merchandise, displays — everything.”
For Pittman’s client’s, thrift stores also give them the chance to have unique items at a bargain price.
“The secondhand market really is going to provide a style that is a little more unique. It may be a few seasons old, but it is something that not everybody will have, that not everybody will have access to in stores or even online. If you pick something out secondhand, you’re going to not look like everyone else,” Pittman said.
Bargain hunt wins
Beyond the updated décor, the hunt for a bargain is still perhaps the driving factor.
Mary Gilly, of the UCI Paul Merage School of Business, said the increase in popularity of consignment and thrift stores partially stemmed from the necessity to buy clothes for kids who are still growing.
“When people are on a tight budget and need clothes, especially for young kids, they don’t want to spend a lot because they will outgrow it,” Gilly said.
Gilly added that these stores, as well as popular discounters like Marshalls and Nordstrom Rack, are an experience where you’re “going hunting.”
“It’s easier to price compare at full price than at the discounted prices. There’s a thrill-of-the-hunt aspect to finding a good deal at a Nordstrom Rack or Marshalls. There’s a pleasurable aspect of shopping there to getting a deal,” she said.
Sfeir added that prices at these stores are lower, which today’s budget-conscious shopper appreciates.
“Young people are moving away from brand names and are okay going to lesser known stores and not just sticking to one brand,” he said.
Eco-friendly shopping
Gilly said a desire to be more eco-friendly was a driving factor in thrift stores’ increasing popularity.
Reused clothes is suddenly hip because you’re not dumping cheap clothes in the trash after a year.
“There’s been a lot of publicity that fast fashion is bad for the environment,” Gilly said. “Clothing makes up a huge percentage of landfills and people are concerned about using and throwing away. Also, it enables especially young women to be creative in putting together their fashion choices. They see it as an opportunity to be unique and have something no one else has.”
Sfeir added that “we recycle everything now,” which has made donating or selling clothes and buying consignment store items cool.
Resale store Plato’s Closet opened in Westminster in May. The store buys and sells used clothes and accessories made by well-known brands.
It is aimed at a younger audience than other resale and consignment stores, generally teens and young adults.
Owner Shane Harris said environmental concerns were a big reason resale stores like Plato’s Closet locations were doing well.
“People are becoming conscious about the environment so businesses that do resale are looked at favorably and people are still recovering from the financial crisis. Orange County is so expensive, rents and housing costs are going up. It’s not getting any cheaper to live here. If there are ways for people to save and recycle, it’s a win-win,” Harris said.