Consumers Shift from Walmart to Thrift Stores
Consumers find better bargains at second-hand shops in recession.
Dec. 6, 2010— -- Second-hand shops once considered the bottom-of-the-barrel for shoppers are getting a boost as consumers living the great recession discover better inventory and bargains.
"A lot of what I wear never costs more than $2," says shopper Patrice Williams. Williams is a part of a growing trend that has shoppers forfeiting inexpensive threads from discount chains for used garments at second-hand stores.
Wal-Mart, the world's largest retailer, saw comparable store sales decline by 1.5 percent year-to-date, according to investment research firm Morningstar. Meanwhile, its competitor Target had a soft third quarter with comparable store sales up only slightly by 1.6 percent, according to Morningstar.
On the other hand, the thrift shops are enjoying an expansion of sales and customers.
"Our transaction growth has grown by over 30 percent over the last two years but the bulk has been over the last year," says George Erickson, the Salvation Army's Northern California Director of Retail, based in San Francisco. "All of these extra transactions had to come from some place -- it's my conclusion that all these customers have stepped down from the Kohl's, Marshalls, TJ Maxx, Macy's and Nordstrom."
Since the start of the recession that has led to more than 8 million lost jobs, The Salvation Army has seen sales grow from $499 million in 2007 to $542 million in 2009.
The creator of "Living Flying on Dime," Williams turned to "thrifting," or second-hand shopping, after she was unable to afford an outfit for an induction ceremony at her university. "I considered not going because I had nothing to wear," says Williams. While trekking through the city, Williams stumbled upon a thrift store, and shelled out $15 for a bag of clothing.
