At a time when many business owners worry whether they’re going to make it through the next year, resale and consignment stores are singing the praises of the sinking stock market.The troubled financial landscape has guided customers to these stores in droves, where they can trade clothes and other items they no longer want in exchange for money and buy gently used items for a reduced price.There are various independent consignment and resale stores throughout the South.  
Plato’s Closet, a chain resale store, has locations in Baton Rouge and Lafayette, while Buffalo Exchange, another chain, has a location in New Orleans.In resale stores, suppliers can get cash outright for their items, while consignment stores pay the supplier a percentage of the selling price after the item is purchased.Wendy Dolan, owner of REfinery Children’s Consignment Boutique, said the economy has forced people to find ways to save money.
“With the economy taking a downturn, people are looking to save money by buying resale and to make money by consigning their items,” Dolan said.Dolan said since the recession, her store has seen a 14 percent increase in sales and a 12 percent increase in consignors.Michelle Livingston, marketing director for Buffalo Exchange, said the revenue at their New Orleans location in 2008 was 20.95 percent over 2007s revenue, and the year-to-date revenue for 2009 is 9.71 percent over 2008.
And that growth isn’t exclusive to Louisiana. Stores such as these are seeing increases across the nation, according to the National Association of Resale and Thrift Shops.In a survey of 185 NARTS members, 71.4 percent said their sales increased, with an average growth of 30 percent from fourth quarter 2008 sales figures compared to those from the same time period in 2007. The survey also noted that 82.3 percent of the stores saw an increase in new customers.Livingston said resale and consignment stores do well during recessions because people are reluctant to give things away when they could receive money in exchange.
“To some degree, we are [benefitting from the economic downturn] because of our business concept,” Livingston said. “In an affluent society, people give stuff away instead of trying to sell it.”Kristin Tubb, owner of Orange Peel vintage consignment boutique in Jackson, Miss., said her sales have gone up “tremendously.” Her store meets with consignors by appointment and said her calendar is full until the end of April. At a time when many businesses are cutting back, Orange Peel is expanding.
“We’re actually adding on to the business about 820 square feet,” Tubb said. “We’re going to start doing furniture.”Tubb said depending on the quality of the items consigned, people have the opportunity to make a lot of extra money.”One lady brought in a lot of jewelry last month, and I wrote her out a check for $700 this month just for that,” Tubb said. “It depends on how much they’re bringing in and what they’re bringing in.”According to the same NARTS survey, 46.7 percent of stores surveyed said they experienced an increase in the volume of people supplying goods to their stores.Tubb said that consigning clothes can be a good way to make extra cash.”If you hang on to your clothes, and you have something that’s cute that you don’t like on you, don’t necessarily get rid of it,” Tubb said. “Consign it, resell it, take that money and you can go get new clothes… people are realizing they can cut back in certain areas. They can pay their bills and actually not be so crunched when it’s time for bill time.”
The recession is inspiring customers to find cheaper solutions for big-spending events too.
Nita Jacobs, owner of The Clothing Loft in Lafayette, said she saw a lot of women visit her store during the carnival season.”I had quite a few comments from women at Mardi Gras saying … ‘you’re only going to wear it that one year anyway and with the economy the way it was, there’s no need to spend the big bucks,'” Jacobs said. “I did do very well for Mardi Gras due to the recession.”While resale and consignment stores have seen a boom in people shopping at their stores, students also see the stores as a source for quick cash.
Some students are considering resale stores as a source for extra income when money gets tight.Erin Derbins, chemical engineering senior, said she has never brought clothes to a consignment store but would consider it.”I don’t take good care of my clothes and it sounds like more trouble than it’s worth,”  
Derbins said. “I have started to consider doing it though, because I have gotten fat and grown out of my clothes, and I’m strapped for cash.”
Derbins said she only shops at resale or consignment stores for costumes, and would probably just shop less instead of shopping at the stores.–
Contact Sarah Aycock at [email protected]