Campus Consignment Krista DeAngelo Faculty Sponsor: Hillary Leonard Conserve Consign Consume

What is a consignment store? A consignment store is a second-hand store that offers previously owned goods, both used and unused, for a lower price than that of new products.

The Resale Industry Consists of resale, consignment and thrift stores One of the fastest growing segments of retail National Association of Resale and Thrift Stores (NARTS) – 25,000 stores operating in the United States – 5% growth each year for past 3 years – 12-15% of Americans shop consignment/resale each year

The Economy Members of the National Association for Resale and Thrift Stores reported increases in sales and inventory Stores within the resale industry have used aggressive advertising – One of the few recession proof segments of retail

Recycling as an Industry Council for Textile Recycling – “Post-consumer textile waste consists of any type of garments or household article, made of some manufactured textile, that the owner no longer needs and decides to discard” – Due to improper disposal of consumer products Secondary Materials and Recycled Textiles Association (SMART) – Average American throws away approx. 68 pounds of clothing and textiles each year

Campus Consignment In the Memorial Union Run by a student organization: – Campus Consignment Club Target market: URI undergraduate and graduate students, faculty, and staff

Mission Statement “Campus Consignment was designed specifically to meet the diverse needs of an evolving small university community. Inspired by the need for environmental responsibility, the business combines promoting environmental awareness and an educational experience for students to provide customers with a valuable business experience.”

Market Research Conducted as a guide for writing a business plan that represents the wants and needs of the URI Community N=80 – 34% Males – 66% Females – 75% Undergraduate/Graduate Students – 25% Faculty Participants completed a 22 item, web-based survey.

Findings 44% of participants were likely to shop at a consignment store on campus – Significantly higher than national average(12-15%) – 61% are also willing to sell 55% of participants were likely to consign on campus – 24% have sold previously 66% of the target population interested in either buying or selling

Market Size $106 (Average monthly spending on clothing and accessories) X16,493 (Total population = 15,904 undergraduate and graduate students faculty members) $1,748,258 (Average spent by total population, assuming all is spent on clothing and accessories) X 44% (% of campus community that is likely to shop consignment) $769,234 (Total average expenditures on clothing and accessories by target population) X 5% (Assuming 5% is spent on consignment) $38,462 (Amount spent on consignment by target population) X 10% (Assuming the goal is to capture 10% of the market) $3,846 (Average monthly sales for Campus Consignment)

Competitors Consignment stores in the South County area – Narragansett, Wakefield Discount retailers – Marshall’s Competition carries similar products

The Store – Products: New and Used; Brand name Clothing (83%), accessories (45%), jewelry, house wares, artwork, DVDs – Services: Selling unused items and helping a cause Artists: the opportunity to showcase talent by selling original creations Consignors: the ability to recycle, give back to the community (charities ) Customers: opportunity to save money, help student organization 95% of population surveyed said each element is important

Campus Consignment Club Store run by student club because it is nonprofit in nature Recognized as a Level III Organization – Contingency grant to cover basic expenses – Free booth space in Union, Ballroom when necessary – Active for 2 semesters for office 24% would be interested in participating

Questions or Comments?