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Now's Your Time to Cash in on the Resale Clothing Opportunity

Uptown Cheapskate franchisees cater to environmentally conscious fashion consumers.

Looking great doesn't have to break the bank, as 33 million people found out in 2020 when they purchased secondhand apparel for the first time. There's no slowdown in sight, as a high percentage of these people plan to keep shopping for gently used clothing as well as selling their own gently used fashionable items to earn a profit.

Courtesy of Uptown Cheapskate

What's more, the resale clothing industry is expected to double in the next five years and reach a whopping $77 billion, outpacing retail at a record pace.

So, why should you care? According to Uptown Cheapskate Director of Franchising Dave Martell, there's a booming resale clothing business opportunity awaiting passionate, community-focused entrepreneurs.

"The pandemic meant soul-searching for lots of people who may have been unhappy with their current job, down-sized, or even craving "something more,'" he says. "At the same time, consumers started looking for ways to make the most of their hard-earned cash while still wearing brands they love."

Coming out of the pandemic, consumers are excited to get out, have fun, and continue wearing the fashionable brands they love. "It's the perfect merging of demand and opportunity to cash in on the ever-growing resale industry," Martell says.

Cost-savings is just one of the many benefits of resale clothing businesses, with environmental sustainability also at the top of the list. Clothing is second only to oil and gas, the number one polluting economy in the world, not to mention other factors such as carbon footprint and workers' rights. Uptown Cheapskate targets the environmentally conscious consumer with their mission to reduce, not contribute to, unnecessary waste-producing activities.

In a Vogue article, The RealReal estimates that 95 percent of clothing could be reused or re-worn, but a garbage truck full of clothing enters a landfill or is burned every second. Some numbers provided by TRR to put it in perspective: Reselling one pair of jeans conserves 279 liters of water. One silk dress saves 30 liters. A cashmere sweater saves 80.

"We like to say, "wear today, sell tomorrow,' and that's really at the core of why the resale clothing industry is so successful," adds Martell. "The resale clothing business industry is the antidote to the alarming statistics coming out of the fast-fashion industry."

Uptown Cheapskate is not the typical no-frills thrift store experience with dingy lighting, nonexistent ambiance, and unorganized racks. Customers are not digging through bargain bins or struggling to find their size. Stores are neat, clean, and designed to be aesthetically pleasing and easy to navigate. Clothing must meet rigid quality metrics to be accepted for sale. Unaccepted items can be donated in-store as well.

In 2019, the top 25 percent of Uptown Cheapskate stores boasted average sales of $1,350,933 and an average net income of $304,781*. The second 25 percent saw average sales of $962,824 and an average net income of $158,988*. With an average item cost of $10 each, that's a lot of secondhand items finding new owners.

Justin Crump, an Uptown Cheapskate multi-unit franchise owner, never dreamed he would own his own business, and certainly not one in the resale clothing industry.

"When I first discovered the resale fashion industry, and learned how sustainable it was, as well as how popular it's getting, I was very intrigued," he says. "People like the fact that we're not putting new items into the environment, and of course, they like the fact that they're getting a good deal."

Crump says he averages about 700 to 800 shoppers every week and about 400 people that sell him clothing each week. "We were able to scale up quickly to multi-unit ownership after the success of our first store," he says. "It's been extremely rewarding, both personally and financially, and it's a very fun business to own."

For more information franchising with Uptown Cheapskate, visit uptowncheapskatefranchise.com.

*Per 2021 FDD Item 19

Uptown Cheapskate

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