Report: Gen Y Will Spend Us Into Recovery
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Don’t look to Baby Boomers to lead the way in consumer spending in the months ahead. A new report from PricewaterhouseCoopers LLP and Retail Forward, owned by Kantar Retail, says that this recovery — unlike those in last few decades — will be shaped by the values of tech-loving Gen Y, and to a lesser degree, affluent members of Gen X.

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Home » Headline, Overcoming the Economy

Consignment business soars amid consumer cash crunch

Submitted by Christine on November 19, 2008 – 10:45 amNo Comment
Consignment business soars amid consumer cash crunch

Sales have jumped at consignment shops across the country as consumers rein in spending. More than 66% of surveyed members of an industry group saw sales rise between January and August, compared with the same time period last year.

The economic downturn is bad for the nearby mall but good for local consignment shops. Sales at these stores have soared since January as cash-strapped consumers look for bargains, income and tax deductions.

“This industry just keeps growing, but especially during slow times,” says Adele R. Meyer, executive director of the 1,000-member National Association of Resale and Thrift Shops. “Once people find that great bargain, they’re hooked.”

A recent survey of NARTS members found that 66.2% of the stores saw sales climb from January through August 2008, compared with the same period of 2007. The average increase was 35%. The survey found that 85.8% of stores have seen an increase in new customers and 74.5% are seeing new suppliers or donors.

Chris Cowman, president of NARTS, says she has seen businesses at her two consignment stores in the Columbus, Ohio, area increase by about 15% to 20% this year. Ms. Cowman says shoppers typically pay about a third of what they would for clothes and about half for furniture at retail stores.

But consumers also are turning to consignment shops to find extra cash. People receive a payment either when they bring in the merchandise in or when it is sold. Ms. Cowman says she’s seeing more designer brand clothes brought in. “I think people have found out that they could get rid of something they don’t wear,” she says.

Ms. Cowman also has noticed an uptick in the number of people taking the cash immediately rather than waiting for the typically larger amount they could receive by waiting for a consignment sale.

Not-for-profit thrift stores also have seen a jump in business, according to a separate survey by NARTS. Almost half — 48% — of these thrift stores saw the volume of donations increase this year, with one third of them reporting a jump of more than a third.

“It’s not just a tax deduction,” says Ms. Meyer. “It might be that people are supporting a charity that is near and dear to their hearts.”

This article was written by Jilian Mincer for the Wall Street Journal.

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