“Last year in this country, we spent a collective $282 billion on new duds, and to clear space for fresh fashion, the average American got rid of 68 pounds of clothing and textiles, billions of bags donated to thrift stores.” (Source:“Old Clothes Go Global” The Seattle Times, February 25, 2007.)

“The global rag trade may be the biggest little-known business around. About half the garments donated to places like The Salvation Army eventually wind up in overseas market stalls or as industrial fiber. That translates into 17,000 jobs in the United States, an estimated 100,000 jobs in Africa’s informal economy and a multi-national trade in second-hand clothing valued at more than $1 billion a year. Between 1999 and 2003, the US exported nearly 7 billion pounds of used clothing and worn textiles, an overflow that otherwise would have been dumped. This is all about style and identity, supply and demand, excess, abandonment, the human craving for bling.” (Source: “Old Clothes Go Global” The Seattle Times, February 25, 2007.)

Thrifting is for everybody from low income families, and immigrants to students, young marrieds, mothers and grandmothers, seniors and fashion models. A typical thrift shopper, bundles up her baby, leaves her “beautifully remodeled house” and hits thrift stores to look for gifts. Purple velveteen dresses for nieces, a DVD for her nephew, Fila sport shirt, Dr. Phil on tape, and red boiled-wool vest. A financial director for a national clothing chain, “shopping at thrift stores is a treasure hunt, a way to make your dollar go a little farther.” “It’s far more fun to help a local charity than to spend in a local department store.” (Source: “Old Clothes Go Global” The Seattle Times, February 25, 2007)

Poverty, hunger, and joblessness are not only a problem for the poor in Africa, but a problem for the poor in the U.S., as well, as the ranks of unemployed refugees and immigrants grows in the U.S. Non-profit ministry organizations are trying to tackle this in a variety of ways. In addition, the growth of registered 501C-3 organizations has grown by 67%, from 626,225 in 1995 to 1,045,979 in 2005. (Source: Giving USA 2006)

Non-profit organizations throughout the US are trying to tackle this problem in a variety of ways, but there is a limited amount of financial resources in the non-profits to accomplish their mission.

“In the past decade the number of charities running businesses has exploded as organizations sought new sources of revenue…but as charities have gained more experience, they have come to realize that many of their expectations need to be tempered. Many business ventures take years to make money, and even when they do, the returns are often modest. Others never make a profit.”

Most charities simply don’t have the business experience and leadership to start up and run a business, while maintaining their focus on their mission. Many charities believe, in addition to generating income, business ventures are also a means of furthering their social goals or their mission, such as job training, mentoring, creating jobs, feeding the poor, etc. indeed the business becomes part of the mission. (Source: The Chronicle of Philanthropy, January 11, 2007)

The thrift store concept has proven to be successful over the past fifty years, with organizations like Goodwill Industries and Salvation Army using them to fund the majority of their ministries. In fact, it is the low overhead and high profitability, along with the benefit to the community, that has attracted thousands of ministries to start thrift stores. Many of these stores, however are operated by volunteers of the charity in a small, make-shift environment that is dark, musty, and poorly merchandised. Most of these stores, perhaps as many as 15,000 independent thrift stores, actually end up being subsidized by the very charity they were created to support, but continue to operate in a deficit because of the community need.

The resale industry is a $12 billion industry, estimated to be growing in revenue at 5% per year, according to the National Association of resale and Thrift Shops (www.narts.org). The nature of competition in this industry is unique compared to other retail sectors, with non-profit multiples like Goodwill and Salvation Army, for-profit multiples such as Savers and American Family Thrift, 15,000 independents, and now the industry’s first franchise, ThriftSmart Stores.

Thrift Stores are generally a “destination” shopping experience in that shoppers enjoy “the hunt” for a bargain, and like to shop in areas where there is a cluster of thrift stores, somewhat like antique shopping. Convenience is also a key factor for many “thrifters” who will stop in on a daily basis. A growing immigrant population has yielded strong store growth across the US, particularly in larger cities, throughout the South, Southwest and Western US.