As retailers suffer, thrift stores thrive

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By Timothy Warren

When the going gets tough, the tough get thrifty.

Retailers across the country are reeling, with mass store closings and some high-profile bankruptcies expected, but sales at thrift stores have risen substantially this year. The trend is most pronounced in areas hit hardest by the recession.

Goodwill Industries International, based in Rockville, Md., said that national sales rose 7 percent in the first 10 months of the year compared with the same period last year. The Salvation Army has seen sales gains of 20 percent in some areas from March through October.

Yet both groups say donations of cash and goods have fallen - which limits the charities' abilities to fulfill their missions and stock their shelves.

But the sales growth is expected to continue.

"We expect that we're going to see a fairly dramatic increase in the numbers of shoppers at our retail stores through the first quarter and the second quarter of 2009, either by choice or out of necessity," said Brendan Hurley, vice president of marketing and communications for Goodwill of Greater Washington, which operates nine stores.

"Our key objectives in the first half are focusing on generating more donations for one simple reason: We've got to make sure we've got the inventory to meet the growing demand. ...

"What's interesting is that we usually see sales drop off as soon as we hit the first week of November [as consumers tend not to buy used items as gifts], but they increased until the third week of November," Mr. Hurley said.

The Salvation Army is seeing similar growth.

"We only have anecdotal information so far, but we have seen general uptick in sales," said Melissa Temme, director of public relations at the Salvation Army, which has its headquarters in Alexandria, Va.