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When the Going Gets Tough, The Tough

Get Thrifty

Gina Teel
CALGARY HERALD - SUNDAY, JANUARY 25, 2009

Sales are on an upswing at most thrift shops and consignment stores in Calgary as recession-wary shoppers look to make their dollars stretch as far as possible. Vendor opinions vary on how much of the resale sales growth spurt is being driven by a slowing economy versus population growth or normal seasonal sales trends, but Marvie Giordano, owner of the Consignment Gallery, is convinced.

"I'm finding that in this economy, it's almost giving us more of a purpose because people still want to buy and have beauty around them," she said.

The Consignment Gallery, which sells pre-owned, high-end furniture and home accessories, recently notched its best November in more than 10 years of business. Sales in November jumped 26 percent over the same month in 2007. July was the only other month in 2008 that experienced a dramatic spike in sales, attributed to the company's 10th anniversary sales blitz.

Marvie Giordano - photo by Grant Black, Calgary Herald
Photo - Grant Black, Calgary Herald

Economics do play a role when it comes to consumers turning to consignment shopping for the first time, said Lynne Ricker, senior instructor for marketing at the Haskayne School of Business at the University of Calgary.

Some consumers are looking for ways to maintain their inventory, but on a restricted budget, she said.

Others are concerned about where the economy is going, so even if their budget isn't currently constrained, "they feel it might be in the future, so they are looking for ways to stretch the budget without appearing to be cutting back a lot," Ricker said.

But resale shopping isn't all about keeping up appearances: others still may be considering consignment "as a possible way to raise some money," Ricker suggested.

Giordano cited the tough housing market— another casualty of the slowing economy— with helping boost sales of consigned furniture, as well.

Homeowners and interior designers are snapping up pieces to stage homes up for sale, she said, with an eye to enhancing a property's selling potential in a slow market amid faltering home values and sales.

The sagging economy also has many consumers foregoing the big trip this year, so people are cocooning more and their homes are becoming increasingly important, Giordano suggested.

"I'm finding the big thing right now is people want to feel a little bit better and they still want to buy things and they still want to change things in their home and they want to find that treasure at a better price," she said.

GTEEL@THEHERALD.CANWEST.COM