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December 18, 1998|STEPHANIE STOUGHTON and SARAH SCHAFER, WASHINGTON POST
Picking through the clothing racks at the Designer Resale shop in Bethesda, Md., Eran Mahlaugi came upon a hidden treasure: a stretchy couture Versace shirt at the bargain price of $39.
But this time she wasn't indulging herself. The shirt, which would sell at retail for more than $150, was a Christmas gift for a co-worker.
"I've bought a Versace for my sister, jewelry for my girlfriends," said Mahlaugi, a medical assistant from Potomac, Md., who was doing some holiday shopping, consignment-style. "I tell them where I got it. And I tell them, 'Why do you want to pay full price?' "
It's beginning to look a lot like a consignment Christmas. Once the dirty secret of bargain shoppers, consignment--or resale--stores have become so commonplace and upscale in many instances that shoppers have begun to accept the idea of buying secondhand items as gifts. Consignment store owners are marketing their merchandise as Christmas gifts and are hearing their cash registers ring up surging sales.
The number of consignment stores across the nation began to rise in the early 1990s. There are no reliable sales estimates for the industry, which is primarily made up of small mom-and-pop stores. But Adele Meyer, manager of the National Assn. of Resale & Thrift Shops, estimated there are more than 11,000 thrift and consignment shops, including those specializing in couture, maternity apparel, bridal gowns, children's clothing and toys.
Although the stigma of buying secondhand merchandise has faded, until recently many shoppers thought they had to buy new when purchasing gifts, Meyer said.
"December used to be a very bad month," she said. "But over the years it has become a much better month, mainly because the perception of retail has changed."
Behind the consignment craze is a broader retailing trend: the blurring of consumer tastes. No longer can consumers be categorized by where they shop, because they're increasingly shopping everywhere.
Savvy consignment store operators are marketing more aggressively and dressing up the stores, industry observers said.
At Second Time 'Round in Leesburg, Va., for example, owner Fonda Michelle Bloom included "Countdown to Christmas" coupons in her August newsletter, offering discounts during the holiday shopping season.
Consignment stores also are peppering their selection of used merchandise with some new items.
Even the granddaddy of resale stores, Goodwill Industries, has gotten into the marketing game. Davis Memorial Goodwill Industries, which operates 15 Goodwill stores, has been targeting teenagers and young adults in print and radio advertisements that suggest, "Why not start a new trend?" The spots urge teens to consider Goodwill as an alternative to shopping at malls.
"The lines are blurring" between consignment stores and traditional retailers, said Margie Johnson, a retail consultant in Virginia Beach, Va. "And that kind of mentality has been very successful."
