Reprint from the Post-Crescent 1-28-09
By Maureen Wallenfang • October 3, 2008
Inc. Innovator update: Consignment shop sees banner year
Owners connect buyers, sellers outside regular retail channel
As consumers' ability to spend money on clothing new clothing diminishes, many have turned to consignment stores to continue shopping.
Chic to Chic Consignment's sales have jumped 20 percent in the last year. With just 2½ years under their discounted designer belts, owners Tammy LeNoble Eiting and Jill Nelson have increased their consigner list from 200 in the first year to now more than 900.
The small store at N474 Eisenhower Drive is already seeing a strong start to 2009.
"January and February are usually the slowest retail months all around, not just for consignment but in general," said Eiting. "And we've maintained a steady business. It's very surprising."
They're amazed by the increase in first-time consigners, many drawn to the shop by word of mouth.
"Half the customers who come in here are first-time," said Eiting. "The economy has sure helped."
"Women are starting to go through their closets more than before to make extra money," said Nelson.
Consignment shops have an enviable position in the clothing industry. They don't pay for inventory, and don't give consigners money until the item sells. When consigned clothing sells — usually at one-half to one-third of the original retail price — the owners split the take 60/40 with the consigner.
"Last year, we paid out $65,000 to the women who consign with us," said Eiting.
In the case of Chic to Chic, just 5 percent of the stock is new merchandise purchased from wholesalers, so the investment is small. Costs are mostly rent, utilities and their paychecks. "From month one, we've been ahead," said Eiting.
One consigner, Carrie Hawley, of the Town of Menasha, has been consigning and buying at the shop for two years. She shops both regular retail and consignment, usually looking for better brands and unique items. One of her favorite finds at Chic to Chic was a high-quality black Geiger knee-length coat that has become a wardrobe staple. "The shop has more of the up-to-date apparel versus some of the other consignment shops," she said. "Jill and Tammy are wonderful to work with and prices are very reasonable."
Chic to Chic sends out a monthly e-mail newsletter to keep about 1,200 women connected, said Nelson. It includes information on Thursday women's nights and bus trips to shop in Chicago. The last trip drew 110 women.
Eiting and Nelson have shifted to accepting a higher level of apparel over the years.
"We used to take brands from Kohl's and Target, and now we find we don't need to do that anymore. With how they're running such sales, we don't need to," said Eiting. "We've gotten pickier on brands. Mall brands are bestsellers. Ann Taylor, Chico's, Banana Republic. The high-end things are coming in. These are some never-worn Yves Saint Laurent shoes. Chanel perfume. A Salvatore Ferragamo purse."
"Here's a Christian Dior purse with the price tag still in it for $1,100," said Nelson. "We priced it at $499."
"We just added maternity. That's new as of last week," said Eiting. She said the days of women hanging onto their maternity clothes through multiple pregnancies are over. "Nowadays, it's back to the days of having one child, and having them later in life. These are high-powered women who have nice clothing and nice things."
Another thing that has changed is the store's Web site, originally designed by a high school sophomore. Now a professional firm, Virtualtech, does it.
"We're also doing more personal shopping," said Nelson. "Some walk in like deer in the headlights. 'I don't know how to put together an outfit. I have dinner with my husband and his boss tomorrow. What do I wear to Lombardi's Steak House?'
"They'll say, 'Are you sure this looks good? You're not just saying that?' And I'll tell them, 'You're a walking ad for us when you leave the store. If we say it looks good and it doesn't, we're only hurting ourselves,'" Nelson said. "Of course we're going to be honest."
Maureen Wallenfang: 920-993-1000, ext. 287, or mwallenfang@postcrescent.com