Nonprofit Thrift Stores Experience Resurgence and Increased Competition Amidst Changing Consumer Trends
Nonprofit thrift stores, including Goodwill and The Salvation Army, are experiencing a significant resurgence, driven by increased consumer interest, particularly among younger generations. This trend has led to secondhand apparel being included in Consumer Price Index (CPI) calculations by the Bureau of Labor Statistics (BLS). Kent A. Kramer, president and CEO of Goodwill Legacy Group, notes a 6-8% annual increase in foot traffic since 2020, with donations also booming due to environmental consciousness. However, this growth also brings increased competition from for-profit entities and challenges for specific segments like Habitat for Humanity's ReStore, which has seen declines in revenue and profit margins due to slowing housing starts and increased liquidation sales by corporate donors. Nonprofit thrift stores are adapting by improving retail experiences, optimizing donation collection, and expanding their physical footprint.
