In the last issue, I wrote about shopping thrift stores for fun and profit. If thrift stores are the Walmart of smart shopping, consignment stores are the Nordstroms and beyond. They often carry a surprising amount of higher-end merchandise. Designer handbags and wallets, well-made shoes, and name-brand clothing show up regularly. These are items people no longer need or want but are still in good condition. It’s common to see labels like Eileen Fisher, Vince, Ferragamo, Gucci, Free People, Burberry, and Cole Haan mixed in with other quality pieces.
The
system itself is straightforward. Sellers bring in items that are still new or
in excellent condition, and the store decides what to accept. Not everything is
taken. Items the store accepts are inspected, steamed if needed, tagged, and
placed neatly on the racks. When an item sells, the original owner receives a
percentage of the sale, and the shop keeps the rest. The arrangement is clear
from the start, and the terms are usually printed on the intake slip.
Most
consignment shops focus on either women’s or
children’s clothing. Women’s
consignment stores often resemble small boutiques, with clean racks,
coordinated displays, and a quiet pace. Items are not crowded together, so it’s easy to see what’s on the
racks and in the display cases.
Children’s consignment stores have a different feel. Along with
clothing, coats, and shoes, many carry baby gear, toys, books, and seasonal
items. Some are independently owned, while others are part of national
franchises, where pricing and inventory are handled more uniformly across
locations. Sizes turn over quickly as children outgrow things, and the racks
rarely stay the same for long.
Because
stores are selective about what they accept, most of what ends up on the racks
is in excellent condition. Brand names are easy to spot. In places like
Florida, where many women downsize after years of building a work wardrobe,
labels like St. John regularly appear. Moves, closet clean-outs, and lifestyle
changes keep new inventory coming into the store.
Prices
vary. Some items are close to thrift-store pricing, while others sit closer to
regular retail. A dress that originally sold for several hundred dollars might
be priced at $35. A high-quality coat that once cost $1,000 may be marked down
to $250. Pricing depends on the brand, the condition, and the store’s turnover policy.
How
sellers are paid also depends on the store. Many offer a higher percentage if
the seller chooses store credit and a lower percentage for cash. It’s common to see something like 50 to 60% in store credit
or 30 to 40% in cash. Payments are usually issued once a month, while store
credit may be available as soon as an item sells.
If an
item doesn’t sell by the end of the
consignment period, often 30 to 90 days, the seller can either pick it up or
allow the store to donate it. Policies vary by location, but the timeline is
usually clear from the beginning. Because items move in and out on a schedule,
the racks rarely look the same from one visit to the next, and the better
pieces don’t stay long. Stopping in
occasionally is often enough to catch items that would be far more expensive if
bought new.
Stay
tuned for more thrift shopping adventures.
Rivka Resnik is the Curriculum Director of Living Smarter
Jewish and the author of three financial literacy textbooks – one for middle
school and two for high school – available at cost to Jewish schools through
the OU and Living Smarter Jewish. Her writing appears regularly in Jewish
publications across the country.
