Franchise Grows From Resales

Ann Arbor chain finds prosperity reselling children's wares, plans to open 200 stores in U.S.

(Thursday, November 29, 2007) - Tight credit inside Michigan pocketbooks and tight return policies at big box stores are two factors that play into growth possibilities for Children's Orchard Inc., an Ann Arbor-based chain of children's resale stores.

"The market is driven by values, lots of upscale clothes and accessories with tags still on it," said Taylor Bond, CEO of Children's Orchard, a chain of 100 children's resale stores, noting that people can't or won't take back merchandise to point of purchase and instead sell them at resale.

Bond, owner of the 30-year-old franchise since 2004, expects to open 200 stores across the country in the next two years, up from 100 now. He looks to grandparents taking buyouts from automakers and moms seeking a career outside the home as potential candidates for 10 franchises projected in southeast Michigan next year.

Advertisement

"There has been an explosion in the number of resale stores in America, but most don't last very long because people don't have the knowledge of how to make a living in this business," Bond said, noting 2007 was a banner year for the privately held company. "Part of being a franchise holder is learning how to buy, price, merchandise, layout and service customer needs."

The National Association of Resale & Thrift Shops counts more than 25,000 consignment and thrift stores across the nation. Goodwill Industries alone generated $1.8 billion from their 2,000 nonprofit stores, according to Adele Meyer, executive director of NARTS. The fastest growing segment is specialty resale such as children's merchandise, plus-size clothes or furniture.

To franchise, investors pay an average of $150,000 for inventory, build-out, working capital and franchise fees for stores occupying 1,500-2,000 square feet. The stores -- including one in Ann Arbor and another in Sterling Heights -- sell gently used clothes, toys, furniture and equipment from cribs to shoes for children up to age 9 for prices up to 70 percent less than retail.

"We've been coming to Children's Orchard for a couple years, you can get a lot for your money," said Sue Strumer of Armada who shops with her 5-year-old daughter and 8-year-old son at the store in Sterling Heights. "My son, Brendan, is really into Abercrombie, so we look for lots of things by that brand."

Trish Thompson, a former pizza franchise owner, has run a Children's Orchard store for 10 years with the help of five employees, all part-time moms.

"Our employees know what to look for, what's out there. Business gets a little better every year."

View all Children's Orchard Press Releases

This article has been read 190 times.

Printer Friendly