Resale Thrives in a Slow Economy

The resale industry is one of the few recession proof segments of retailing. Not only does it survive during economic downturns but it grows and thrives... shining with promise. The appeal is twofold... consumers are attracted to buying quality merchandise at a fraction of the original cost and there is a financial incentive to sell, consign or donate their unused or unwanted items.

With food and energy costs increasing, housing expenses rising, retirement accounts shrinking and the stock market still a major concern, it is no wonder consumers are feeling cash and credit constrained. As they run out of purchasing power, they cut back on discretionary spending and change the way they shopbut dont be mistaken, people will still shop!

Some people shop because it makes them feel better, others shop out of need... professionals still have to look good, children outgrow their clothes, teens need prom dresses and newlyweds have new homes to furnish.

Recessions present the opportunity for resale shops to attract new customers. Even people who never worried much about saving money before are now feeling the pinch and cutting back. In this uncertain economywhen people are shopping cautiously and focused on getting more value for their moneyresale is the natural choice. With the economy posing a challenge and the fact that many people have an overabundance of possessions, savvy shoppers and sellers are realizing a real need to recycle perfectly good merchandise.

Resale attracts a new demographic of both suppliers and customers 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. says Adele Meyer, Executive Director, 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!

The 2010 Operating Survey showed a growth in net sales of 12.7% for 2009 from 2008. Respondents reported strong growth rates for the past five years with 2009 being the strongest. This is a significant increase considering that retail sales overall were down 7.3% in 2009 from 2008, according to data from the U.S. Department of Commerce.

While other segments of retailing are cutting back on advertising and promotions and are trimming inventory and staff, resale professionals are taking the opposite approach. Increased consumer commitment to resale has resulted in new shops being opened throughout the country at a rate of about 7% a year. This is a higher growth rate than in previous years and something NARTS expects will continue this year. People who have recently become unemployed and are looking for other career opportunities are exploring the possibilities of opening a resale or consignment shop. Charities seeking additional sources of revenue are opening up thrift stores. Many factors contribute to the popularity of resale during both strong and unsettled economic climates, states Meyer, Increased awareness of recycling, the quest for higher quality for less money, the lure of finding something distinctive, the thrill of the hunt and the excitement of a good buy are just a few things that allure the savvy shopper. One of the foremost reasons that resale thrives in a slow economy is simple... People LOVE A BARGAIN!

www.narts.org  for more information.