As the economic environment remains full of uncertainty, inflation is taking over. Consumers are finding themselves spending more money on everyday items, from groceries to clothing.
While this uptick in retail prices has not deterred people from buying, it has led them toward more affordable, sustainable options like resale stores.
Winmark – the Resale Company® has been capitalizing on the resale market for over 30 years, and as the industry continues to grow, Winmark and each of its five resale brands are well-positioned to thrive.
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The Rising Costs of Clothing and Accessories
When the pandemic hit, prices everywhere began to surge, and they’re only continuing to do so. According to a recent news article, “two-thirds of industry executives expect to increase prices by 3% this year.” This is just one of the many factors that have been shifting many customers’ mindsets toward resale.
For our umbrella of resale brands, Play It Again Sports®, Plato’s Closet®, Once Upon A Child®, Music Go Round® and Style Encore® and their combined 1,270 locations, this means more new customers than ever.
This is true not only in-store but also online. Our ecommerce platform provides a convenient option for customers and an extra revenue stream for franchisees.
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The Search for More Sustainable Options
While value is one factor driving the resale market, so is the social impact. Now more than ever, consumers are conscious of their purchasing decisions. Recently, Coresight reported that 29% of surveyed consumers said environmental sustainability is more of a factor in their shopping choices than it was before the pandemic.
This focus on sustainability is nothing new, but it is growing rapidly. In 2020, 48% of Americans reported buying an item through resale. Coresight has even predicted that fashion resale will continue to grow throughout 2022.
All generations have displayed a preference for shopping in secondary markets, but this trend is largely fueled by Millennials and Gen Z. Looking toward the future, these are the same consumers that will go on to lead the retail market for years to come.
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Choosing the Right Resale Franchise
With a resale market that’s projected to surpass $53 billion by 2023, it’s no wonder so many are eager to open their own store. The 360-degree support Winmark offers has allowed our franchisees of all different backgrounds to open and operate successful resale locations.
When choosing a franchise, it’s crucial to work with a team you can depend on through every step of the process: real estate support to business planning, buildout, inventory, technology, marketing and more.