Shoppers Turn To Consignment Stores

The Wall Street Journal:

The economic downturn is bad for the nearby mall but good for local consignment shops. Sales at these stores have soared since January as cash-strapped consumers look for bargains, income and tax deductions.

“This industry just keeps growing, but especially during slow times,” says Adele R. Meyer, executive director of the 1,000-member National Association of Resale and Thrift Shops. “Once people find that great bargain, they’re hooked.”

A recent survey of NARTS members found that 66.2% of the stores saw sales climb from January through August 2008, compared with the same period of 2007. The average increase was 35%. The survey found that 85.8% of stores have seen an increase in new customers and 74.5% are seeing new suppliers or donors.

Chris Cowman, president of NARTS, says she has seen businesses at her two consignment stores in the Columbus, Ohio, area increase by about 15% to 20% this year. Cowman says shoppers typically pay about a third of what they would for clothes and about half for furniture at retail stores.

But consumers also are turning to consignment shops to find extra cash. People receive a payment either when they bring in the merchandise in or when it is sold. Cowman says she’s seeing more designer brand clothes brought in. “I think people have found out that they could get rid of something they don’t wear,” she says.

Cowman also has noticed an uptick in the number of people taking the cash immediately rather than waiting for the typically larger amount they could receive by waiting for a consignment sale.

Photo by mtsofan.

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