Secondhand stores shine in weak retail market

By Maggie Overfelt
CNNMoney.com

NEW YORK (CNNMoney.com) - On a Wednesday afternoon in late December, the average wait to sell clothing at Buffalo Exchange, a Manhattan consignment shop, was about 25 minutes. Beyond the front counter, where the consignors sought pocket cash and tax deductions, nearly a dozen shoppers squeezed themselves between overstuffed racks in the 450-square-foot space, seeking bargains amid used designer jeans and last season's cashmere sweaters.

The new store's crowds are indicative of both Buffalo Exchange's continuing success - the privately held company says it has $50 million in annual revenue and is concluding its third consecutive year of sales growth - and also of the resale market's overall performance. Secondhand shops are a bright spot in today's downtrodden retail industry.

Sales are flourishing at secondhand shops as a new echelon of shoppers finds its way into resale stores. Of the store owners who responded to a recent survey from the National Association of Resale and Thrift Shops (NARTs), 74 percent said that September and October sales increased over the prior year, by an average of 35 percent. Goodwill Industries, a nonprofit that operates 2,200 thrift stories, says that same-store revenue have increased by an average of 7 percent compared to last year. The Salvation Army, with 1,370 nonprofit secondhand shops nationwide, also reports significant gains.