Amid economic uncertainty, it’s hard not to worry about what the future will hold - this is especially true for entrepreneurs. They invest money, time, effort and their livelihoods into building a reliable business.
For franchise owners, this also means investing in a company and corporate team you can count on. As the pandemic has proven, the growing resale industry, our recognizable brands and our strong business model sets our franchisees up for long-term success - no matter what comes their way.
The Booming Resale Industry
With a resale market that’s already valued at nearly $50 billion in the U.S., 2022 will see the biggest growth yet with a Compound Annual Growth Rate of 24%.
With a huge demand for secondhand apparel, the global market is expected to grow 127% by 2026, a rate three times faster than the global apparel market overall.
While other businesses struggle during economic downturns, it can work in a resale business’s favor. Recently, 58% of consumers said that shopping secondhand helped them through rising inflation, and a quarter of consumers plan to consider more secondhand shopping as prices continue to rise.
The resale industry is one of the strongest for appealing to the two largest consumer groups - Millennials and Gen Z. Between the rising cost of living and their increased focus on sustainability, resale offers an option that is both affordable and eco-friendly.
When looking at these two generational groups, 62% of them reported that they look for an item secondhand before purchasing it new. It’s actions such as these that show how Winmark - the Resale Company® franchisees will benefit from being the first resource consumers turn to when they need a product.
Built-in Brand Recognition
There are plenty of perks to being around for 34 years, and brand recognition is one of them. With 1,291 locations across our five resale brands, many consumers are already familiar with Play It Again Sports®, Plato’s Closet®, Once Upon A Child®, Music Go Round® and Style Encore®.
Our brands are very well-known in the franchising world, with Plato’s Closet, Play It Again Sports and Once Upon a Child recently being ranked on Entrepreneur's Franchise 500 and Top Global Franchises lists. Once Upon A Child even ranked number one in the Children’s Retail Category for the twelfth year in a row, speaking to just how powerful the brand is in the overall market.
A Business Model Prepared for Anything
Of course, our franchise opportunity would not be as resilient without the business model we’ve spent decades improving and the tenacity of our franchisee partners. When the pandemic threatened businesses everywhere and stay-at-home orders were put into place, our multiple revenue streams helped many of our franchisees maintain profitability.
Before the pandemic even began, we invested a significant amount into our e-commerce platform, which allowed franchisees to seamlessly integrate online and in-store sales through our Point of Sale system.
As businesses everywhere are back up and running, online resale is still the fastest-growing sector in the market, with half of all resale dollars projected to come from online resale by 2024. As online shopping continues to expand, virtual secondhand sales are expected to quadruple by 2026. While brick and mortar locations are the core of our business, it’s evident that our multi-channel strategy and the accessibility of an online presence in particular will continue to play a key role.
This strong setup, paired with our corporate team’s unwavering support in real estate guidance, store layout, operations, inventory management, product and trend training, merchandising, marketing and technology, ensures that even franchisees with no retail experience achieve success.
Take the First Step in Owning a Successful Resale Store
In the first half of 2022, we’ve opened 18 new stores and have 44 in development. We are also nearing the grand opening of our 500th Plato’s Closet and our 1,300th overall locations - and you can be a part of it all.
With over 2,800 open territories in North America, we are always looking for passionate people to join our resale franchise.
Are you looking to join a resilient franchise that will set you up for success- even during uncertain times? Contact us today to learn more about opening a Winmark store in your area.