Used Merchandise Stores Go Mainstream Shopping at used merchandise stores was a necessity for many Americans during the Recession; however, their experience has led to a wiser understanding of the significant savings and value of the inventory at thrift, consignment and resale shops. According to The Association of Resale Professionals (NARTS), the number of stores increased approximately 7% per year during 2012 and 2013, with more than 25,000 for-profit and not-for-profit used merchandise stores in the US, generating $12 billion in annual revenues. In Canada, there are approximately 2,700 used goods stores with total annual revenues of $1 billion. The Canadian market experienced a 4.1% annual growth from 2009 through 2014.

Resale for Retail and Rehabilitating Lives Goodwill Industries operated more than 2,900 retail stores and its online auction site, shopgoodwill.com, and generated $3.79 billion in retail sales during 2013. The Salvation Army had 1,232 thrift shops during 2013, with revenues of $638.8 million. Savers operates 330 thrift stores in the US and Canada. Each store partners with a local non-profit and pays for donations of used merchandise. The company sells and/or recycles the equivalent of 600 million pounds of used items, annually. The Winmark Corporation operates 5 resale franchise chains with a total of more than 1,000 locations – Play It Again Sports, Plato’s Closet, Once Upon A Child, Music Go Round and Style Encore.

Consumers Eager to Put Their Hands on Second-Hand Luxury Items Many affluent Americans are discovering they can live without some of the duplicated luxury items in their wardrobe and can receive 60–80% of the sale price from luxury resale retailers. The people at luxury resale retailers also have the knowledge and experience to be able to authenticate luxury goods, ensuring that customers are not trying to sell them knock-offs or counterfeits and buyers are paying for true upscale brand merchandise. According to its Second Annual Resale Report, thredUP, the largest online resale shop for women’s and children’s fashion, expects sales for the resale sector to increase 16.4% through 2016.

Reselling Online Is a Golden Opportunity A primary driver of the appeal of online used merchandise Websites, especially for luxury items, is that the commission charged is often 20% or less, compared to a commission of 50–75% by brick-and-mortar stores. Other important distinctions of the online resale sector are providing a higher level of customer service – helping customers find an item from a specific year – and featuring the merchandise well-known female executives choose for their closets. According to the thredUP report, people who sold clothing to the online reseller earned a total of $3.2 million and saved $21 million, compared to shopping full-price retail.

Advertising Strategies Look for the clustering of used merchandise stores on the same street or in the same area, similar to an outlet mall, and recommend television as the best medium to attract consumers to shop multiple stores during one trip. Some used items make great holiday gifts, such as sporting goods and fitness equipment, allowing consumers to buy more with their budgets and saving gift recipient’s significant dollars instead of paying full retail prices. Suggest used merchandise stores run TV advertising during spring-cleaning season to obtain an influx of inventory as people reduce the clutter in their attics, basements, garages and homes.

Social Media Strategies Since most used merchandise stores are receiving new items regularly, social media becomes an excellent platform to highlight the latest inventory and promote special limited-time offers on items that will sell quickly. Not only will a blog greatly improve search results for a store’s Website, but also allow the owner to explain his or her approach to reselling, thus building trust and reducing the stigma associated with buying used merchandise. With women’s fashion a major used merchandise category, stores would benefit from the regular use of Pinterest, creating pinboards of styles and combinations of apparel for career women and providing pricing information that compares buying used to new.