The economics of thrift
Thrift and resale stores boost the economy and benefit the community

[February 09, 2018]   

LINCOLN

Resale and thrift stores are good for the economy. According to the National Association of Resale and Thrift Shops, resale and thrift businesses are growing while other retailers are shrinking. In 2017 NARTS reported that resale and thrift stores are growing at a rate of seven percent a year.

America’s Research Group, a consumer research firm, also reported that about 18% of all Americans do shop in thrift stores. This particular group separates ‘thrift’ from ‘resale’ in their research, and they also reported that about 15 percent of all Americans shop resale.

The ARG in comparison says that 11 percent shop factory outlet malls, 20 percent shop apparel stores, and 21 percent shop department or big box stores.

A third, and very influential source, Dun and Bradstreet, estimates U.S. annual revenues from resale and thrift businesses is at about $17 billion per year. They do include antique stores in this category as well, and report that about 13 percent of that total statistic is from antique shop sales estimates.

While the novice resale shopper may be picturing a store that is cluttered and filled with “junk” that no one else wanted, the truth is today’s resale shops are clean, bright, classy, and some will say they are as “nice” as any boutique or specialty store they have ever visited.

The quality of merchandise is also much better than some would imagine. Why, because resale and thrift store managers have learned to look at what the customer wants, and to sort through the piles of donations and make certain that what they offer is answering a need.

For example, Goodwill Industries has a store in Lincoln. While they are a larger ‘corporate’ thrift seller, they strive to offer the items that are relevant to the local community. Patrick Anderson, who represents Goodwill Industries from Springfield, noted that their rule is “if we wouldn’t buy it for our family, it does not go on our sales floor.”

For Goodwill there are alternatives, such as an ‘outlet’ in Jacksonville, where anything that doesn’t pass inspection is sold by the pound.

For the locally owned thrifts such as Pink Shutter in Lincoln, they too work to offer quality in their store, and those donations that don’t meet their standards also don’t go on the shelves or hangers.

Thrift stores that build a good reputation are an asset to the local economy and are a tool that can be used to bring people into the community with their “fist full of dollars.” According to an article published in February of 2017 on OUDaily an Oklahoma University publication, communities with multiple thrift shops of good reputation are becoming “destination locations.”

Within the communities, a “clustering” of thrift stores can bring out of town visitors into town for the thrift shopping alone. Of course, while in town, the trick is to catch the attention of those shoppers and draw them into other businesses, such as eateries, coffee houses, and specialty shops – the retail venues that make a particular community unique and desirable.

Lincoln has all the components needed to create this destination shopping experience. With numerous thrift shops, spread around the downtown area and beyond, unique eateries such as the Flossie & Delzina’s, Deep Roots Café, beverage specialty stores such as Guest House, Sir Renna Tea, and Spirited Republic, destination shoppers can shop thrift in Lincoln for several hours, then enjoy a meal or an afternoon or evening beverage, and leave town with filled shopping bags, empty wallets, sales tax revenue for Lincoln, and money in the bank for the stores. Win, win, win, win! Add to the mix the wide variety of other retailers including specialty retail such as Abe’s, Prairie Years, and Mary Todd Hallmark, Beans and Such, a scattering of antique stores such as Cherished Treasures and Copper Penny, and others plus a couple of big box locations to stop by on the way out of town, and the day is complete, and let’s chock up a couple more “wins” for the city of Lincoln.

In addition to the potential economic boost thrift stores bring to a community, locally, those stores also provide benefits through the use of its profits to assist those in need in the community. Goodwill, Pink Shutter, Renew Consignment and Thrift, and the soon to open Hanger, are all attached to community service organizations that provide a variety of services to residents of our community.

Over the next few weeks, LDN is going to be taking a look at some of these stores beginning with the Pink Shutter. As a fun fact, the Pink Shutter is the longest running thrift store in Lincoln, opening its doors more than 50 years ago in November of 1961.

Look for the Pink Shutter story next week in Lincoln Daily News.

[Nila Smith]