Shoppers flocking to thrift stores

McClatchy Newspapers (MCT) - Maybe it's the $10 Abercrombie T-shirt. Or the $150 drop-leaf dining table and chairs. Or just maybe it's the $5 Hello Kitty overalls.

Whatever the draw, customers are flocking to resale shops _ a sector that includes thrift stores, consignment shops and others. And sales are up dramatically.

Bad economic times are driving the traffic, experts say.

"Whenever there's a slow economy and the word 'recession' starts getting thrown around ... of course resale (sales are) one of the first things that comes up," said Adele R. Meyer, executive director of the Michigan-based National Association of Resale & Thrift Shops.

A survey by the association of its members found that 75 percent reported sales increases in April. The average increase in sales was about 30 percent. A more recent survey is turning up almost identical results, Meyer said.

Plato's Closet in Fresno, Calif., which sells used clothing geared toward teens, also is seeing a 30 percent increase compared with last year, assistant manager Brittani Piccolo said.

The store sells brands that many teens seek out, such as Abercrombie T-shirts the mall store sells for up to $40. They sell for $10 at Plato's Closet. High-end True Religion jeans sell for $65 at the shop, but between $200 and $300 in other stores.

Customers like Robin Allen, 25, of Fresno have less money in their pockets these days. Allen is a server at Piazza Del Pane, and in the past took home $70 to $80 in tips. Now he brings home $40 to $50.

"Right now it's really hard on everybody," said Allen, who still hit the mall last week. About Plato's Closet, however, he said, "I can always find something that's my style, my brand and it's cheap."

Because cash is tight, sales at luxury stores, department stores, even regular apparel stores are declining. All those categories declined between 3.5 percent and 5.5 percent during the first nine months of year, according to the International Council of Shopping Centers.

Resale shops join discount stores and wholesale club stores, such as Costco, as retailers that do well during economic downturns. Sales at discounters such as Target saw a 2.4 percent increase and wholesale clubs saw an 8.1 percent increase.

Off-price retailers such as Ross, Marshalls and T.J. Maxx also have reported increased sales.

Gwynn Clark, owner of Repeat Performance, a consignment shop on Van Ness Avenue in Fresno, said off-price retail stores still charge more than many consignment shops. Still, she said she has lowered prices about 25 percent to compete with discounters and off-price retailers, and sales are up about 12 percent recently.

"When you can buy things new at retailers for $5, $6 or $7, places that are selling resale have to respond in kind," she said.

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And, she said, people are changing what they buy at her shop: less fine jewelry and more costume jewelry; fewer designer purses and more Liz Claiborne purses.

At Goodwill Industries, sales at San Joaquin Valley, Calif., stores during the first eight months of the year were up 6 percent compared with the same period last year, said Sally Wooden, director of public relations for Goodwill Industries of the San Joaquin Valley.

"In the retail business, any time you get 2 or more percent, you're pretty happy," she said.

Tough times also bring new customers who never shopped resale stores before, said Meyer of the resale association.

About 80 percent of her members saw an increase in new customers.

Sandi Meza, director of retail for all 13 Goodwill stores in the San Joaquin Valley, said some people say they didn't know Goodwill had a store in their city.

"The economy draws them in, but once they're here, people are usually pleasantly surprised with the quality of merchandise on the sales floors and they want to come back," she said.

The nonprofit organization _ which uses its income to pay for job training and other services _ is trying to be more like conventional retail stores.

We "don't want our shoppers to feel like they're in a thrift store," Meza said.

"We don't like to look at ourselves as a last-resort shopping facility. We consider ourselves a regular part of the economy."

The store is buying more overstock goods at discounts _ about 12 percent of its merchandise is new _ including children's clothing and Halloween costumes.

Donations are up, as well, according to Goodwill.

Other factors play into the increase at all resale shops, too, workers say. The public is becoming more aware of the importance of recycling, label lovers continue to search for designer brands at cheaper prices, and people are becoming more savvy about tax deductions from donations.

And young people who create their own styles _ as 19-year-old Kenya Cavasos of Fresno and her friends say they do _ scour thrift shops regularly for unique clothing.

Cavasos said tough times probably will bring more style-conscious shoppers to the resale shops.

"It probably is a double boost because of the economy and the trendy style," she said.

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© 2008, The Fresno Bee (Fresno, Calif.).