Caitlin Dreger loves Anne Klein scarves and Coach handbags. But her budget doesn’t allow for high-end prices.
So the 24-year-old nanny finds herself making frequent visits to a Goodwill thrift store. Among her favorite finds: a Michael Stars T-shirt, typically $50, for a dime, and a Ralph Lauren cashmere sweater, normally $500, for $7.
“When I was in high school, the thrift stores were grimy and had a weird smell, and you felt you had to wash your hands when you left,” Dreger said. “They used to be for people who were more edgy. Now, more people are just going to Goodwill because you can get good deals there.”
That is just what Vicki Holschuh wants to hear.
As an MBA who earned her retail stripes at Kohl’s, Holschuh is on a mission to turn Goodwill retail stores into hip places to shop. She initially planned to capitalize on the eco-friendly shopping trend that was prompting consumers to recycle. Then the recession hit, and sales took off as cash strapped shoppers hunted for bargains.
“We’re seeing a lot of new customers come in,” said Holschuh, vice president of retail services for Goodwill Industries of Southeastern Wisconsin and Metropolitan Chicago.
Many retailers are scaling back expansion plans or closing stores, but nonprofit Goodwill plans to open five stores a year from 2008 through 2012. The new stores take aim at middle- class shoppers with clean, bright, well-organized layouts and merchandising flair to rival mainstream chains.
“We’re trying to position the stores as hip and contemporary and a trendy shopping environment,” said Pat Boelter, vice president of marketing services for the Chicago-area Goodwill. “We’re trying to get rid of the stigmas that many people have of shopping at a Goodwill store or a resale store.”
To that end, Goodwill began a billboard campaign in the Chicago area last October depicting budding fashionistas in search of stylish shoes and sweaters. In one ad, a woman contemplates a 3-inch, two-tone open-toe pump. Another cheers as colorful sweaters fly around her. Television ads are in the works.
Thrift stores typically do well when economic times get tough. But the last time the nation was in a recession, fast-fashion stores such as Forever 21 and H&M had yet to dominate the retail landscape. And steep markdowns at retailers from J.C. Penney to Saks Fifth Avenue were uncommon.
Facing increased competition, Holschuh decided to try to make more money by operating like a for-profit retail chain — hiring managers with retail experience, hanging clothes neatly by category, putting ensembles together in the front of the store to inspire shoppers, providing dressing rooms and making fashion experts available online at goodwill to spot trends.
Same-store sales, which are those at stores open at least a year and a key retail barometer, rose 8 percent in the last three months of 2008 at Goodwill stores in southeastern Wisconsin and metropolitan Chicago. That is a remarkable gain, given that sales at major chain stores nationwide fell about 2 percent in the same period.
Goodwill accepts clothes as donations and then uses the proceeds to fund programs such as job training and education. Goodwill Industries operates 160 independent, community- based agencies in the U.S. and Canada.
Consumer behavior expert Britt Beemer, founder of America’s Research Group Ltd., estimates that 16 percent of consumers shop at thrift stores today. He expects that figure to rise to 20 percent this year, which would mark a record high, according to his data.
“It’s good to be a recessionista these days,” said wardrobe consultant Jane Hamill. “You may have shopped at Goodwill, but unless you were an art student, you probably didn’t tell people that you did. Now if you do, it makes you seem smart and with the times.”
Blahniks for $6.99!
No money? No problem. Fashion-loving ladies (and men too) can scratch their wardrobe itch for this season’s trends for not much more than bus fare. With some patient digging, there are spectacular steals. Here are some of shopping columnist Ellen Warren’s favorite finds in a 30-minute blitz of a Goodwill in Chicago:
• Manolo Blahnik pumpssell for upward of $575 in stores like Barneys New York. Move over, Carrie Bradshaw! Goodwill’s gently worn in deep sapphire suede are red-carpet-worthy at $6.99.
• High-end Malo cashmere starts at $250. A boyfriend sweater found in Goodwill’s vast men’s section will be on trend belted over skinny jeans, $4.99.
• Booties are everywhere. Nine West black suede, back-zip beauties are on your feet for $6.99.
• Capelets are featured in glossy fashion mags. Great for winter over long sleeves and ideal with a tank when spring arrives, Echo’s wool and cashmere blend with red lining trim is $4.99.
