There's one bright spot in the retail economy, but you won't find it in your local mall next to Macy's or Banana Republic.
Thrift and consignment stores are making a big comeback as the economy turns sour. Salvation Army thrift stores posted an average sales increase of 10% in January, and sales rose as much as to 50% in economically hard-hit markets, spokeswoman Melissa Temme says.
"In many areas we are seeing these increases because people are trying to make ends meet," she said.
- Talk back: Do you shop at thrift stores?
The National Association of Thrift & Resale Shops' recent survey of 182 members found that most had seen a jump in sales last autumn -- an average of 35% -- about the same time many mainstream retailers were experiencing double-digit drops.
Driving this boom at the nation's estimated 25,000 thrift and resale stores are big jumps in demand for clothing, especially work clothes such as dress shirts, suits and skirts, says Lauren Lawson, a spokeswoman for Goodwill Industries International.
Charity stores, private stores
There are two types of stores selling used goods: for-charity stores such as Goodwill, the Salvation Army and smaller church and hospital shops, and for-profit resale boutiques.The former are stocked with contributions of clothing, furniture, housewares and other items to sell to fund charitable endeavors such as job training, disaster relief or rehabilitation. Private resale shops take clothes and furniture on consignment from individuals and split the profits once these items sell.
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Both can be good sources of affordable goods, but thrift-shopping experts say the best bargains are found at charity stores, which don't pay for their inventory.
"Their interest is moving massive volume, not necessarily getting the highest price possible for each item," says blogger Amy Hardin Turosak, also known as "Shopping Golightly," who writes the Thrifty Chicks blog.
New with the old
This low overhead can mean great deals on all kinds of clothes, housewares and furniture, as long as you're willing to keep an open mind, says Michael Gold, a co-founder of TheThriftShopper.com, an online guide to shops around the country."Some of the older clothing is of higher-quality than clothes made today," Gold says. But, he says, "you are digging through other people's leftovers." It's more like a rummage sale than a visit to your local J. Crew.
However, it's not uncommon to find new clothing dumped at your local thrift store by retailers and manufacturers, experts say.
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Heather Stricklin, a Los Angeles stay-at-home mother and avid thrifter, recently picked up a couple of pairs of new J Brand jeans for $8 recently at her local St. Vincent de Paul thrift store. These jeans -- manufacturer samples -- were identical to those regularly sold for as much as $200 or more at Saks Fifth Avenue.
Stricklin also found some new $1.99 American Apparel T-shirts with embroidered felt designs that she has used to outfit her own kids and to give as gifts. At a boutique these items cost $20 to $30 apiece. "I just love finding a bargain," she says. "I really feel like I'm getting away with something."
A $4 bracelet that Turosak found at her local charity shop that was still in its original packaging from Anthropologie turned out to be priced at $98 when she called the retailer.
Continued: High-dollar items with cut-rate price tags
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