Nov 14, 2008 9:15 am US/Central
Thrift Stores Thriving Despite Troubled Economy
NEW YORK (CBS) ―
The retail industry is in the midst of their biggest sales slump in decades, but business at thrift shops is thriving, up double digits in some cases.
And as CBS station WCBS-TV in New York City reports, there are some fabulous deals to be found.
Both bargain hunters and fashionistas know that there are hidden gems on the racks of thrift shops.
Housing Works, a popular thrift store that also provides auctions online, has become a recognized shopping destination.
"Today we found a Marc Jacobs short-sleeve sweater, for $40," said Naomi Bergknogg, director of stores for Housing Works in New York City.
And now even Goodwill is in on the fashion action. One location in lower Manhattan boasts great bargains, and coveted designers.
"People are gravitating to our stores and realizing that they can find great value and bargains in our stores as well as a diversity of merchandise similar to a department store," said Mauricio Hernandez, senior VP of retail sales for Goodwill Industries.
Hernandez said they've updated their location in lower Manhattan to improve the shopping experience, spiffing up the look and even adding murals painted by local artists. Sales have responded with an 8 percent jump.
But both here and at Housing Works, part of that sales uptick is attributed to the economic downturn.
"Some customers are coming in that hadn't before that are looking for interesting and exciting items that are more reasonable than are buying full price, though we need more donations of gently used product," said Housing Works president Richard Vorisek.
For now, shoppers can still find plenty of fashion gold -- Armani, Polo and a brand new Diane Von Furstenberg are just a few of the designer labels WCBS found.
"There's always the thrill of the hunt when you go to thrift stores," Strager said.
The Salvation Army has also reported improved sales despite the bad economy.
"During this past year, the numbers have increased by 330,000," said Major Dennis Gensler of the Salvation Army. "That's a significant increase in the number of customers that are actually in our stores."
Maria Aiello is one of those thrift shoppers.
"I find all the bargains I can - second-hand clothes, second-hand anything," she said.
Hundreds of thousands of Americans now find themselves needing to live frugally. Here in the northeast, bargain hunters can pick up a garment at the Salvation Army for an average cost of $2.58.
The Salvation Army told CBS News that in many stores, sales have increased up to 20 percent in the past year.
Goodwill and Housing Works also have online shopping for designer deals, and, this weekend, Housing Works will hold their annual "Fashion for Action" sample sale with new and gently used designer merchandise.
"The donation flow becomes a barometer for tough economic times and
what we're experiencing now is sales are up, donations are down," said
Jim Gibbons, the CEO of Goodwill Industry International.
The trickle down effect - bad times, second hand.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
CBS News Interactive: Eye On The Economy
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