Economists aren’t exactly sure when we can expect another recession. Whenever it happens, entrepreneurs looking at franchise opportunities need to make sure they invest in a sturdy concept that can withstand economic fluctuation.
Resale stores are one of the few recession-proof businesses. In fact, at Winmark Corporation, we have seen resale franchises actually improve sales during tough economic times. With steady growth, a recession-proof concept and an offering that meets the demands of eco-conscious consumers, Winmark’s resale brands are a sound investment no matter the economic climate.
The Resale Industry is Growing
Due to numerous factors, including increased awareness of sustainability issues in the fashion industry, the resale segment is on the rise. The apparel resale market is expected to hit $41 billion by 2022.
In addition, by 2027, resale items will make up a greater portion of women’s closets – increasing from 6 to 11 percent of closet share. As more consumers turn to resale businesses to fill their closets, resale franchises will flourish.
Resale Franchises are Recession-Proof
As consumers are forced to stretch their dollars during a recession, businesses that offer value are poised for success. Many consumers become resale shoppers once they learn they can purchase high-quality, gently used items at deeply discounted prices.
No matter what, people need clothes to wear and quality items for their children. During a recession, resale franchises like Plato’s Closet and Style Encore allow shoppers to purchase like-new items to refresh their wardrobes at an affordable price. Once Upon A Child offers parents an economical way to buy clothes, toys and other necessities for their growing children.
Resale businesses also provide a unique selling proposition that attracts consumers during tough economic times. Winmark brands offer customers cash for their used items, which is a successful model during a recession. When customers come in to get cash for their items, they can use the money they earn on their gently used items to buy something new from the store – it’s a win-win scenario for resale franchise owners and their customers.
The Rise of Eco-Friendly Consumers
Sustainability has become increasingly important to consumers, especially Millennials and Generation Z. When Millennials trust a company’s environmental and social practices, 90 percent of them say they will buy from that brand, according to a study by Shelton Group. In addition, 45 percent of Americans want to be seen as someone who purchases eco-friendly products.
As the demand for sustainability increases, the resale industry will continue to thrive because resale shopping has numerous environmental benefits. For example, we could save 13 trillion gallons of water if everyone in the U.S. shopped resale for a year.
Because of these reasons and more, the resale franchise industry is here to stay. Resale franchises offer shoppers an affordable, sustainable way to purchase quality items, which means investing in a resale franchise is a sound decision for entrepreneurs in search of a stable, consistent business.
Are you interested in a business opportunity in a growing industry with staying power? Contact us today to learn about resale franchise opportunities with Winmark Corporation’s brands.