Resale is the New Black

By Craig Manning and 63 percent in May. The bad year has led

It’s a common tradition at this time of bankruptcy in 2020, including J.C. Penney, J. year: parents flocking to clothing stores in Crew, Tailored Brands (the parent company the last weeks of summer to get their kids of Men’s Wearhouse and Jos. A. Banks), and new duds for back-to-school time. But what Neiman Marcus — to name just a few. happens when the economy is in shambles, That’s not to say the pandemic hasn’t when many people have been out of work impacted resale or consignment stores. since March, and when the return of inAs part of the stay-at-home order, these person, face-to-face schooling is a tenuous businesses — like many others — were forced proposition at best? to close their doors for several months in

For many parents the answer has been the spring. Since then, customer behaviors simple: Skip the name-brand apparel have shifted slightly. At Once Upon a retailers and hit up secondhand clothing Child, O’Brien says her customer count is shops instead. down, but the average size of transaction

Jen O’Brien and her husband, Chris, per customer is up. Instead of stopping in along with his brother, Tim, own Once “just to browse” or to buy an item or two, Upon a Child, a shop in Traverse City that parents are shopping more purposefully and “buys and sells gently used kid’s clothing, deliberately. Average transactions these days shoes, toys, and baby gear.” According to Jen tend to land in the $200 to $300 range, and O’Brien, the store has rarely seen as many some have been over $1,000. new faces as it has over the past few months. “It used to be, ‘Oh, I have a reservation

Customers who might normally shop at Olive Garden; I’ll stop in and have a look for their kids at stores in the Grand Traverse around.’” O’Brien told Northern Express. “Now Mall have found their way across the street it’s ‘We have a babysitter for an hour; we have to Once Upon a Child instead. O’Brien our list of what we need; we’re going to buy believes the pandemic is the primary reason. everything for our six kids at one place.’” She says that, with some parents out of work more than a few apparel retailers to declare and with less discretionary income, more NICHE DEMAND families are choosing to save a few dollars by Another major driver for Once Upon a giving secondhand stores a try. Child has been the store’s COVID-19 mask inventory. O’Brien has been vigilant about CONVERSION RATE keeping kid-sized (and kid-themed) masks

Secondhand-store owners are betting in stock, knowing that, if schools start and that the sudden need to save money will maintain in-person learning, parents will transform first-time customers into loyal likely need to have 3–6 masks per child. (For customers of shops like Once Upon a Child, K–12 students, the CDC recommends that simply because it’s helping shatter some of the masks be washed after every day of use.) preconceived notions that people have about O’Brien says even keeping masks in stock secondhand stores and the products they sell. has been a challenge; she recently ordered

“A lot of people have commented about another 3,000 to keep up with demand. the [good] condition of the clothes, or Local resale shops have dealt with other about how new everything looks,” O’Brien pandemic aftershocks, too. A major one was said. “They wonder why they haven’t been the influx of inventory that came in after stayshopping like this all along.” at-home orders started to lift and business

If that’s the consumer takeaway, then it’s was able to resume. Charlette Steinhebel, who more bad news for major apparel retailers owns The Roost Consignment Boutique in in a year that has already brought plenty. Suttons Bay, says that many customers took According to the retail consultancy group the shutdown as an opportunity to do some Wood Mackenzie, sales “at apparel and extensive spring cleaning. As a result, many apparel accessory stores” in the United States people were armed with lots of items ready were down 87 percent year-over-year in March, for consignment when The Roost reopened. 16 • sept 14, 2020 • Northern Express Weekly

“I would say that a lot of people had cleaned out and organized over the couple of months that the stay-at-home order was in place,” Steinhebel said. “I heard from many consignors that they were cleaning out closets, garages, attics, and more.”

Once Upon a Child has seen the same trend. O’Brien says her store normally buys about 1,000 items a day for resale. After the stay-at-home order lifted, that number just about doubled.

MARIE KONDO EFFECT

The “spring cleaning” pattern ties into a larger trend that resale shops across the nation have experienced in the past several years — a trend that has been labeled as “the Marie Kondo effect,” after the famous author and TV show host who has written multiple books about organizing. In January 2019, Kondo reached a wider audience with the Netflix series Tidying Up with Marie Kondo. Kondo spends each episode of the show working with American families to declutter their homes.

Kondo’s strategy for organization is known as the “KonMari” method, which involves gathering one’s belongings and getting rid of anything that doesn’t “spark joy.” In the weeks following the debut of the Netflix series, TODAY reported that Kondo’s viral fame was inspiring people across the country to declutter their households — and triggering big business for resale stores as a result. One Goodwill donation center

Plato’s Closet

in Washington, D.C. tracked a 367 percent increase in donations, compared to the same time the previous year.

“When Marie Kondo’s Netflix special came out, we got a ton of people coming in [to sell us stuff],” O’Brien said. “She’s been very good for business.”

More donations or consignments, in turn, can pave the way for more people shopping secondhand. Steinhebel says that, in many cases, the customers who visit her shop for the first time to consign “end up becoming frequent shoppers.” Just as the pandemic has led some parents to discover the quality of the lightly-used kids clothes at Once Upon a Child, Steinhebel believes the increase in consignments at The Roost in recent years has clued shoppers into some of the treasures that might be hiding on the racks of a resale shop.

“Customers prefer to purchase higherend brands secondhand than something lower quality that is new from a store or online,” Steinhebel explained. “There are those who maybe can’t afford a cashmere sweater new but can buy one from The Roost at an affordable price. Customers also like to shop consignment because of the unique items they find. A lot of times, items like furniture and décor are older. Antique and vintage is very common too, and some people prefer older items so as to have something one-of-a-kind, or something you can’t find in every store.”

Another factor that could be driving more popularity in the resale space — locally, at least — is that newer stores are targeting specific demographics that haven’t always been served by secondhand shops. O’Brien was inspired to open Once Upon a Child in 2016 because there wasn’t a resale shop in Traverse City that focused on kids clothing. It’s a similar story for Melissa Dow, who owns and operates the Traverse City Plato’s Closet location along with her husband, Mike. The Plato’s Closet franchise — which is part of Winmark, the same national franchisor that owns the Once Upon a Child brand — targets an adolescent and young adult demographic.

“When we opened Plato’s Closet in May 2013, there wasn’t really a [local resale] place for the teen and young adult demographic to shop for their styles — especially for men and plus-size customers,” Dow said. “We are filling a gap where younger teens and adults can find things for themselves in a store targeted to them, as opposed to finding a few things in a store targeted to their parents.”

MOTHER EARTH LIKES RESALE

There’s also an environmental side to secondhand shops. There has been backlash in recent years against the idea of “fast fashion,” or clothing manufactured quickly and cheaply (and sold at a low price) to capitalize on the latest fashion trends. The affordability and trendiness of fast fashion has led to a gradual increase in the amount of clothing that the average person buys, owns, and ultimately, tosses.

According to McKinsey & Company, the average person was buying 60 percent more clothing in 2014 than they did in the year 2000 — and keeping those garments for half as long. The trend has been accompanied by

an increasingly alarmingly environmental SECONDHAND MISSION By offering a way for people to make money cost. Per the Ellen MacArthur Foundation, Sometimes, there’s even a moral off their unwanted belongings, resale shops textile production uses approximately 93 imperative to offering the affordability can also have a significant economic impact million cubic meters of water per year, that resale shops can provide. Such is the on the people who live in the communities contributing to global water scarcity. Fashion case with Challenge Mountain, a nonprofit they serve. Dow says Plato’s Closet, which pays production also relies on huge quantities organization based in Boyne City that works cash on the spot to buy clothes directly from its of oil, fertilizer, and dye — non-renewable to ensure that individuals with disabilities customers, has paid out over $2 million in cash resources that often pollute water sources have access to outdoor recreation activities. since opening its doors in 2013. and negatively affect natural ecosystems. The organization is partially funded by the “We are very proud of our impact here

Steinhebel says she often has conversations Challenge Mountain resale store, which locally, especially now, when a little extra cash and mean so much,” Dow said.

“The role that consignment stores play in the environment is great,” Steinhebel said. “Instead of At Once Upon a Child, O’Brien says her revenues typically sit around $1 million per year — though she notes that much of throwing perfectly fine items away, people bring in the money goes toward buying inventory and paying competitive wages to her 25 their items, and we offer them for sale. If those items sell, the person get some cash, and the item goes employees. At Challenge Mountain, Looze describes recent years at the resale shop as “going like gangbusters,” with annual sales home with someone who needs or wants it. revenues of over $400,000 — most of it “excess revenue” that Challenge Mountain has been able to channel to its nonprofit with her customers about fast fashion. The relies on donations from the community efforts and programming. average consumer, she thinks, is increasingly (of items like clothing, furniture, and The pandemic has dampened business cognizant of how cheaply-made most clothing jewelry) to stock its inventory. In addition slightly, though. O’Brien expects she’ll be is — and of the fact that buying higher-end to the broader mission of the nonprofit, relatively flat to last year in terms of sales secondhand items can actually net a higher Challenge Mountain Executive Director and revenues, with big summer and fall return-on-investment. She also thinks more Elizabeth Looze says the resale store plays transactions helping make up for several people are concerned about the environment an important role in meeting the needs months of lost revenue during the staynow than they were in decades past. of lower-income families in and around at-home order. Challenge Mountain has

“The role that consignment stores play Boyne City. tracked an average per-year growth rate of in the environment is great,” Steinhebel said. “We kind of think of it as being a 12 percent since 2016 but is down 15 percent “Instead of throwing perfectly fine items secondary mission to the organization, from last year in terms of resale revenues. away, people bring in their items, and we which is to provide low-cost clothing, And at The Roost, Steinhebel is down about offer them for sale. If those items sell, the household items, and furniture to our one percent, compared to the 10 percent person get some cash, and the item goes community,” Looze said. “25 percent of growth she was expecting in 2020. home with someone who needs or wants Charlevoix county kids are on free or Still, despite the slowdown, O’Brien it. Several people benefit just from the one reduced lunches — or at least they were expects things will turn out OK in the transaction, and sometimes the item goes before [COVID-19]. So, that’s 25 percent of end. One of the great things about the through hands several times before it’s our population that is essentially living at secondhand resale industry, she says: “It’s recycled or thrown away.” the poverty level or below.” recession-proof.” Northern Express Weekly • sept 14, 2020 • 17