If you're an aspiring or existing entrepreneur looking to break into the resale sector, you've likely done your research and run into popular misconceptions about the industry. These misconceptions typically create questions that demand answers before you can confidently move forward with the opportunity.
For instance, how is owning a resale store different from owning any other retail store? How do you effectively market a resale store? What are the benefits of opening a resale franchise?
With so much information about the resale industry floating the internet, we'll take a closer look and unpack the top three misconceptions.
Brick-And-Mortar Retail Resale Stores Are Becoming Obsolete
This first misconception couldn't be further from the truth. In fact, resale stores are growing in popularity.
According to a recent report, the resale market is expected to double in five years, making it a $77 billion industry! Despite the pandemic and the rise of online shopping, many are still visiting brick-and-mortar resale shops. In fact, a recent report states that 12-15% of Americans shop at resale stores each year. That’s almost as high as the percentage who shop at big-name apparel stores!
Another reason that consumers can’t get enough of resale shopping is that they are focused on sustainable alternatives, placing the resale sector at the forefront of this popular "green" movement.
Not only is resale popular thanks to its minimal environmental impact, but also because of the money it saves consumers. This is especially true for families with young children, as kids grow rapidly and many parents find themselves having to purchase new kids' clothing every year.
Winmark®’s brands Play It Again Sports®, Plato's Closet®, Once Upon A Child®, Music Go Round® and Style Encore® all provide alternative options for consumers spending big bucks on new products.
Resale Stores Are Difficult to Market
Of course, owning a resale store means that you're competing with other retail providers that sell the latest styles. However, that's not to say that resale stores can't sell trendy items too. They usually do and at a much lower price!
When stocking our stores, we look at a variety of factors, including quality, style and recent trends. Each item is gently used and some still have the original price tags still on. Despite the fact that some of our products may have originally been purchased a while back, we sell items that are just as modern and trendy as the ones you’d find at any local retail store today.
Owning a resale store can benefit you when it comes to marketing, especially when you're part of a franchise. Brand recognition alone will help you stand out among competitors.
For example, because we have over 1,250 locations across the U.S. and Canada, the chances of people visiting our store in one place and recognizing our store in another area is much more likely. Brand recognition may prompt someone to visit your store over another resale store they're unfamiliar with.
You also have the benefits of one of the most vital marketing angles: value. Money-conscious consumers seek out stores where they can buy more and spend less, especially frequent shoppers. Although you may sell products at a lower price point, your profitability is just as high when you're selling twice as many products as competitors.
Resale Stores Are All The Same
Finally, another misconception some may have about resale stores is that once you've been to one, you've been to them all. Every resale location is unique.
Products vary based on who sells to that resale store, where the store is located and seasonality. Resale locations are often places where people can find rare and versatile items.
Our five resale brands cater to different types of people and hobbies specific to sports, teens and young adults, children, music and women.
These sectors allow franchisees to pursue their passion for catering to different types of audiences, and each one allows for consistent growth. With increasing consumer interest in resale clothing and products — the opportunities for growth are endless.
Getting Started with a Resale Franchise
Regardless of the misconceptions that surround resale stores, our recognizable brands help us stand out among the rest. As the industry continues to grow, so will our franchises.
There is nothing more important to us than the success of our franchisees, and we're always looking to invest in franchisees who invest in us.
Are you looking to get involved with an established franchise in the booming resale market? Contact us today to learn more about our franchising opportunities!