Resale Store Franchise Thrives in Downturn

As Published in Business Opportunities Journal. January, 2009.

In contrast to dismal retail clothing sales figures, Kid to Kid, a children’s resale franchise, has been posting strong sales gains going into the year end shopping period. In September, the franchise posted an average sales gain of 15 percent.

September’s growth is not isolated. In August, the National Association of Resale and Thrift Stores (NARTS) issued a statement saying that two-thirds of its members had seen big increases in year-to-date sales. In 2008 third quarter comparable store sales, Kid to Kid’s used product sales increased 14 percent in July, 15 percent in August, and 17 percent in September.

“New shoppers are learning what our customers have known all along—that resale businesses, like Kid to Kid, are a great way to find quality merchandise for kids at a price that won’t break the bank,” said Donna Gylling, owner of The Woodlands Kid to Kid location. “It’s a win-win option no matter what the economy is doing.”

The Woodlands store opened in February 2005. Another store in Spring, Texas will be opening soon.

“I decided to open my store because I wanted to break away from the headaches of the corporate world,” Gylling said. “Opening a business was risky, but having a business that continues to grow in value to our customers has made it a sound investment.”

“Gas and food prices go up and down but our prices are consistently low throughout the year—and that is why I believe resale businesses, like Kid to Kid, are constantly growing,” Gylling said.

NARTS called resale retailers a “recession proof” investment because their growth and profitability do not appear to be tied to the market.

Kid to Kid opened its first store in Sandy, Utah, in 1992. It currently has more than 75 stores in 21 States and in Portugal.

On the Net:

http://www.kidtokid.com/franchise.php