As consumers pinch pennies, resale clothing stores ring up more revenue

Guy, owner of Designer Consignment, said she has seen an increase in shoppers over the past 18 months, as well as a shift in customer demographics.
Designer Consignment is one of several consignment shops in the Omaha area. Consignment shops generally sell high-end, "gently used" clothing items, including designer labels, that are less than 2 years old.
The stores, which attract budget-conscious, fashion-conscious shoppers, accept clothes on a consignment basis, paying the owners a portion of the proceeds when sold.
And lately, things have been selling at Designer Consignment, Guy said.
The 20-year-old store's recent move to 90th and Blondo Streets is drawing even more new customers, she said.
"We've never been short of consignors," she said. "We turn more away than we're able to accept. But that has been the case for years."
In the past, Guy said, the store's typical customer was 40 to 60 years old. Now she is seeing more women in their 20s and 30s, and more shoppers in general.
"Seventy-five percent of the people who walk through my door have never been in my store" over the last year and a half, she said.
The National Association of Resale and Thrift Shops, whose membership includes consignment shops, recently surveyed members and found that, of 185 respondents, 75 percent said sales increased from April 2007 to April 2008. The average sales increase reported was approximately 30 percent.
"Many factors contribute to the popularity of resale during both strong and unsettled economic climates," Adele Meyer, executive director of the organization, said in a press release.
The "thrill of the hunt" and the desire for higher quality for less money are two factors, Meyer said.
"One of the foremost reasons that resale thrives in a slow economy is simple," she said. "People love a bargain."
More people are "absolutely" coming to Plato's Closet, both buyers and sellers, according to owner Sharolyn Sellon.
Plato's Closet, 3406 S. 144th St., which specializes in high-end teen brands, is traditionally busy during the back-to-school season, but this year has been noteworthy, Sellon said.
"I definitely see an influx of more people selling to us, and I think our sales have seen an increase, too."
Many of the customers, primarily 13- to 24-year-olds, are new to the store, as well.
"We always ask customers if they have a customer appreciation card, and that's when we get the feedback, people saying, 'No, this is my first time in the store.'"
An $80 pair of Abercrombie jeans could go for $20 at Plato's Closet, Sellon said. "The kids can still wear the trendy clothes, the brands, at a very reasonable price."
Trish Lonergan, owner of Esther's at 805 1/2 S. 75th St., said she is seeing possibly as many as 20 percent more customers, who range in age from the 20s through the 50s.
"I've definitely seen more shoppers, and historically we have, when the economy slows," she said. "People come to us because they feel their money will go farther." New customers can be surprised by the selection, which includes labels such as Chanel, Banana Republic, and other designers and popular brands, and the prices, Lonergan said.
"I can tell people are really minding their money," she said.
Guy said new items are marked at 50 percent of their original prices. If only slightly used, the clothing is marked down to a quarter or a third of the original price, she said.
"So you could save, in some cases, hundreds upon hundreds of dollars if you are a designer wearer."
This report includes material from the Associated Press.
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