Monday, Oct. 13, 2008

From rags to riches

Thrift stores cash in on poor economy as shoppers look for bargains

Spikes in unemployment, swathes of foreclosures and swells in gas prices are turning some people’s rags into businesses’ riches.

Local thrift stores and consignment shops – like other resale retailers across the U.S. — are reporting increased sales and traffic of up to 15 percent. The National Association of Resale & Thrift Shops, an industry trade group, said its members are seeing sales increases averaging 30 percent.

But the sour economy also means people are using clothes and housewares longer and donations are dropping for some resale shops. People often don’t have the cash to buy new and more people are pinching pennies by using clothing, toys and dishes longer instead of donating them.

At Goodwill Industries Manasota, Inc., donations to its thrifts store and outreach programs are down 40 percent from July, August and September of 2007 or about $400,000. Yet demand is up, said Goodwill Spokeswoman LuAnne Kirschner.

“More people need clothing that’s inexpensive,” she said.

One recently unemployed professional woman, who previously shopped only at upscale department stores, said ‘You are now my Dillard’s,’” Kirschner related.

Some shoppers said they are prompted to shop at thrift shops to cut their economic losses.

Patricia Cook, a retiree shopping at a Cortez Goodwill, said she used to spend between $300 and $400 monthly at thrift stores and consignments shops, but has cut back to about $150 month because of increased expenses.

“I have a big Lincoln that takes a lot of gas,” she said.

Community Thrift Shop General Manager Martha Monosiet said sales have increased 15 percent from 2007 and more new customers are visiting the store.

Donations are down about 10 percent from last year, especially with bigger-ticket items like furniture and dish sets, as people elect to consign them for greenbacks.

“It’s not anything fancy or expensive,” said Monosiet, who’s been the manager for about seven years. “It’s just people cleaning their house and wanting to get rid of stuff that they don’t need.”

Manatee Memorial Auxiliary Thrift Shop has experienced a slight slump in donations too, while sales have picked up tremendously – 8 percent compared to 2007’s January to October period.

“We’ve seen a lot of new customers,” said Robin Cox, manager of the shop. “I think a lot of it is based in the economy.”

Nell Caison, manager of Trinity Thrift Store, said she’s given away more free furniture and clothes through affiliated Trinity United Methodist Church’s charity voucher program.

“I think the worse the economy did, the better our business,” Caison said. She hasn’t seen a reduction in donations nor a decrease in quality.

But there are still customers who are just in it for the thrill of the hunt.

Martha Adams, who was scouting measuring cups for her granddaughter at Community Thrift, said she enjoys the bargains and unpredictability of thrifts.

“It’s fun to kind of find the needle in the haystack,” she said.