Resale goes upscale
Elaine Krieger's trying on a new aspect of the resale clothing industry.
Over the past eight years, Krieger has opened seven resale stores, but those franchises catering to children -- Once Upon a Child -- and teens -- Plato's Closet.
She believes it's time to diversify and go after the next logical market -- women in their 30s, 40s, 50s and 60s.
Krieger recently launched Clothes Mentor at 582 S. Route 69 across from Westfield Fox Valley in Naperville. This is only the third Clothes Mentor to open, and the first franchise in Illinois. However, Krieger plans to open another soon in Orland Park.
"It was a no-brainer; it seemed to fit together. I now cater to women, age birth to 60," she said.
Clothes Mentor, now in its infancy stages, was founded by the same couple who started both the Once Upon a Child and Plato's Closet resale chains. Krieger believes in getting involved early. She was the first franchisee to open a Plato's Closet in Illinois about five years ago. There are now more than 200 across the United States.
Clothes Mentor differs from its competitors in that it offers upscale clothing and accessories at resale prices. A Talbot's jacket sells for $15 instead of $80 and a pair of Cahche jeans go for $18, not $90.
For the past two months, soon-to-be customers have been selling their merchandise to Krieger and her managers at the Naperville shop. Customers are always paid cash on the spot.
"We're creating a lot of excitement." When the store opened for the first time Saturday, there were about 500 purses, many Coach, Dooney, Brighton, Bourke and other top brands. "We have about 300 pairs of shoes, many of them only worn once," Krieger said.
Krieger, 47, stresses that they only buy current styles that are in good condition. Knockoff purses are not allowed.
"We have brand inspection books and we know what to look for. We only have brand names," she said.
Shoppers will find wood floors, five private fitting rooms and clothes that are organized in the new store much like they would be displayed in a department store.
The shop carries business and casual apparel in sizes 0 to 26 or 4x. Popular brands include Coldwater Creek, DKNY, Gap, Jones New York, Nordstrom, Polo and more. A large maternity section as well as petite and plus sizes are offered.
The store comes at a time when the resale industry is growing. The National Association of Resale & Thrift Shops estimates sales in the secondhand industry have risen about 5 percent each year for the last decade.
"It's a growing segment," said retail analyst Anne Brouwer, senior partner with McMillan Doolittle in Chicago. She finds that resale stores have stricter guidelines about accepting clothing. It's different than the Salvation Army-type stores that have been around a while.
The continued interest in the green movement and consciousness of the environment also sparks interest in resale, she said.
Krieger's own interest in resale developed while shopping for her children. Krieger, who earned a bachelor's degree in communication from Virginia Tech and an MBA from the University of Virginia, left the business world when she relocated to this area with her husband. She left a career working as a vice president of marketing for a health-care organization.
She found a Once Upon a Child store in the area and investigated the business possibilities. She and husband Doug, who works as the director of finance for the city of Naperville, have two children, ages 13 and 11.
Krieger, who has 89 employees at her eight stores, is finding consumers are more likely to shop resale as day-to-day household bills increase, from gasoline to food prices.
"We have less disposable income, yet we're more brand conscious," she said. "It's a recession-proof business."