Second-hand stores, also known as thrift or consignment shops have provided countless people with a way to own their own business and make some money as well. Reselling old clothes is still a very lucrative business. According to researchers, secondhand selling is a $ billion industry and has been growing at a steady six percent each year.
Many stores across America have opted to use a sell-trade-buy process. They offer individuals store credit or cash in exchange for their well-cared for and gently used shoes, accessories and clothes. Thrift stores have been around for years so why the sudden surge in popularity? Secondhand store growth rate can be traced back to the recession.In 2000, we saw the technology bubble burst, destroying approximately $6 trillion in household wealth in 2 years. The construction market tanked in 2005, and from 2007 to 2009, real estate owners experienced a fall in the home values by nearly $6 trillion.
Despite the American financial loss, the construction tumble led to such a massive collapse, while the dot-com hurtle resulted in a mild decline. The reason for this difference was mainly due to consumer spending. When the real-estate value hit, it killed retail spending, which was said to decrease by 8 percent from 2007 to 2009. This by far has been one of the largest two-year drops in American history.
Consumer confidence about the future economic condition is then another factor that affected consumer spending. After the drop in real-estate and the stock market drop, many attained the “better safe than sorry” approach and instead of spending their hard earned money, they opted to start saving more in case of another rainy day. Many people still visit thrift stores because they are always looking for ways to save money especially if another economic downturn is to happen.
A consumer’s optimist or pessimist approach about the future economic conditions is another key determinant on the economy spending. This is why more and more people would rather purchase gently used garments/ accessories from consignment stores rather than spending more money on brand new clothes and shoes. Secondhand stores tend to carry unique pieces giving a buyer an opportunity to own something that not many other people will have. Ever purchased a brand new piece of garment from a mall and minutes later bump into someone with the same outfit? Second-hand stores offer individuals an opportunity to not be identical with most people.
As you can see, second hand stores are still lucrative. They offer buyers gently used items at cheap rates which allow you to save money. The thrill of hunting for treasure is also an added perk. Overall, even though the economy is better now with no future risks predicted, the excitement that comes from saving money and hunting around for treasure while purchasing a unique piece still lingers.