Cheap chic: Consignment and thrift shops are thriving in tight economy

The economy may be reducing the profits of countless stores throughout the country, but at area consignment and thrift shops business is booming.

"While we have a regular clientele, we're seeing more and more new faces," said Jackson Salvation Army Thrift Store manager Sandra Trapp. "When the economy is tight, people are looking to supplement their income in whatever way they can."

Since the beginning of the year, the Salvation Army stores in Cape Girardeau and Jackson have seen an increase in sales, particularly in clothing, which accounts for about 60 percent of their sales.

"To have to buy new clothes is hard, especially on families with children," Trapp said. "Our constant supply of quality clothing benefits customers looking for a bargain."

Cape Girardeau Salvation Army store worker Dora Sides estimated her location has seen a 10 percent increase in overall sales compared to this time last year.

"Business has really picked up in the last three weeks," Sides said. "While most people have been buying clothes, all of our items are selling well. I believe with the economy the way it is, that number will only go up."

Laura Spangler, owner of Crites Street Consignment in Scott City, believes the trend will continue for months and even years. Since September, Spangler estimated there had been a 30 percent increase in purchases of furniture and clothing, in particular name-brand jeans.

"People are scared of what will happen," Spangler said. "Whereas they used to donate items a lot more to charitable stores, people are now going the route of consignment shops, where sellers get 70 percent of the profit at my store. Business couldn't be better."

Another consignment store, Kids Wear Again in downtown Cape Girardeau, has seen an increasing number of customers and people selling their goods to the business during the past few years. Store owner Crissy Batchelor said the most popular item customers purchase is name-brand clothing.

"People are spending hundreds of dollars on name-brand clothing," Batchelor said. "But they still save on items that they normally would have purchased in chain outlets. Our shoppers save money on the items here because of our lower prices, and the consigners make money through a 50 percent profit, so it benefits everyone."

At MERS Goodwill thrift store in Cape Girardeau, sales have increased by 8 percent and donations by 3 percent since 2007. Spokeswoman Phyllis Weiss said they expect that upward trend to continue.

"More and more people understand we have really good, quality items at excellent prices," Weiss said. "The problems with the economy are starting to kick in, and we expect sales to increase in the coming months. There are a lot of people that are finding out it's helped stretch their budget."

St. Louis resident Annie L. Saunders, who stopped by the Cape Girardeau Salvation Army thrift store Friday afternoon, said such businesses save her a substantial amount of money that she is able to use on other necessities.

"This is like a treasure hunt," said Saunders, an 11-year veteran of thrift stores. "And I will shop for even more clothes with the way the economy is."

Weiss said sales of MERS Goodwill's items such as clothing, furniture and small electronics support job-related services in the community.

"And we're very appreciative of people who take the time to donate," she said. "In the Cape area we're trying to evaluate how the economy will change things. It's more stable in [this] area but when people are losing jobs or getting downsized, we like to think they might come to Goodwill to find nice clothes to do interviews."

Nationwide, secondhand stores also are reaping the benefits of a slowing economy.

The nation's largest charitable retail outlets, the Salvation Army and Goodwill Industries International, have seen an increase of 6 to 15 percent in sales nationwide so far in 2008.

And in a recent survey by the National Association of Resale and Thrift Shops, 63 percent of 203 organization members reported higher sales from January to August 2008 compared to the same period in 2007. The average increase was about 35 percent.

The survey found that 85 percent of the stores saw an increase in new customers and 75 percent had an increase in new consignors, donors and sellers. While only 12 percent saw a decrease in donations, 48 percent of respondents reported an increase in the volume of donations.

Association executive director Adele Meyer said the statistics reinforce that more shoppers are turning to thrift and pawn shops during difficult economic times.

"People who previously gave away clothing, household goods and furniture are seeking other ways to dispose of unwanted items during an economic pinch," Meyer said. "Some donate merchandise to a not-for-profit thrift shop and take advantage of the tax deductions while helping a charity raise money. Others may choose to sell or consign merchandise at a local resale shop, turning their 'no longer needed' articles into cash."

Whether it is on a local or national scale, consignment and thrift shop owners agree that the trend will continue.

"This is a great service for people because it allows them to get more for their money," Trapp said. "Shopping at thrift stores like ours and others in the area can really stretch a dollar and that's great news for families trying to find deals during these tough times."

bblackwell@semissourian.com

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