Yet another reason to be optimistic about the prospects for resale in a recession. Not only are cost-conscious shoppers discovering that the gently-used market has great deals for great prices, but now the true strength of consignment, resale, and even thrift shops comes to the forefront:
Selection!
Years ago, one of my best ad approaches (best = pulled in the most new shoppers) was Don’t like what the department-store buyers want you to wear this season? Try consignment, where the variety of styles, colors, and even sizes is more than any “new” store could possibly offer. Set your own style. Don’t look like everyone else: Shop consignment!
And now, slow times in the consumer arena should make it even better for the secondhand market. Why? ‘Cause “new” stores can’t afford variety. It’s enough of a gamble for them that people will buy ANYthing, yet alone the unique items we offer every day. Here’s the manufacturing industry’s take:
For years, retailers could afford to be sloppy about running their businesses because customers kept buying. No more. Shoppers… may not start spending again for a long time, [so] stores are making drastic changes. They are cutting out marginal suppliers….The new discipline will be mostly good news for shoppers, who will find stores less cluttered and see an array of products at lower prices… Of course, the downside is that consumers who want something out of the ordinary — an olive green prom dress, for example — may have to look harder. Stores are rooting out offbeat, unpopular colors and styles, which will mean fewer choices.
So, you resale, consignment, thrift shopkeepers: Go get ’em TIGER!
Auntie Kate The Resale Expert 
Actually my store had a 25% sales increase in 2009 over 2008 and Ive seen many more people interested in these types of businsses.
Thanks, Jane, for your comment. Actually, I do know many shops who have THRIVED the past year, capitalizing on all the media attention they’ve received and that vast, untapped NEW population who has been willing to “try” shopping secondhand. Here’s a post from way-back-when where we discussed this.
Next point: You are absolutely right: when the public curbs new-merchandise shopping, there will be, a year or so down the road less for them to pass on. Less consigning, selling to resale shops, donating to thrifts or garage-saling. And yes, there will be more shops chasing fewer goods. That’s what calls for a constant learning/ growing/ improving in your business.
In addition to the many many shops I have seen which are enjoying new-found customers and suppliers, I have seen shops which have remained static for 5-10 years: always the same decor, layout, attitudes. I know that you’re smart enough to tailor your shop to the new audience recession has brought you, and I hope others are as well!
Here’s the most important quote from the above article…
“They’re not buying disposable clothing,” said Allen Schwartz, owner of fashion company A.B.S. by Allen Schwartz. He noted that store buyers are taking styles with staying power…”
This could mean trouble for the resale industry in about 12-24 months. There will be fewer consignments and the quality an selection will certainly decline. This doesn’t mean that we can’t adapt, it just means that if you don’t start planning for this now your sales will most definitely suffer in the future!
I get so tired of people saying that the consignment business is “recession proof”. The fact is when people have little or no home equity, fear the loss of their job and have seen there retirement saving dwindle that no one wants to buy ANYTHING! My clothing consignment business is down the last 12 months. Do you know a shop where sales are up? Nope, neither do I…