is a 'resale' shop a viable business opportunity?

[kankle j]

I've had a similar idea recently. Having a classy brick and mortar location, designed to look like a great retail menswear store (Brooks Brothers stores, Zegna Stores, Hugo Boss, etc). Then hand pick suits, shoes, shirts and accessories from trusted purveyors on eBay. Many sellers have inventories of Canali, Ermenegildo Zegna, Brooks Brothers, Turnbull and Asser, Drakes, and the list goes on. Would it be viable for example, to purchase a brand new Zegna suit for 800 and sell in a retail environment for 1600? The store would have knowledgable sales staff that could speak to the quality of the goods and fit, friendly atmosphere and create a positive purchasing experience while still offering new and slightly used goods for half the price of full retail. I could even see myself hiring a tailor to be on staff in the back office, as well as have a gentlemen outside shining shoes to create a stir by the store front. Seems viable to me, but I think that would depend on marketing, foot traffic, and socioeconomic status of the neighborhood, and location and channels of advertising. The business model certainly is sustainable, but it all depends on people are willing to come into the shop to talk, try on, feel, and purchase, as opposed to many ebay shoppers who would rather buy in between commercials of top chef.

 

[Bradford]

I only know of two places that have succeeded in this type of field.

They are My Sister's Closet http://www.mysisterscloset.com/ out of Phoenix, which is a consignment chain and has stores that do women's clothing, furniture (My Sister's Attic), and men's clothing (Well Suited). But they don't really pay for inventory, customer's bring it in and consign it. When it sells, you get cash (very little) or store credit (about twice as much).

The most successful chain I'm aware of is Buffalo Exchange http://www.buffaloexchange.com/(started in Tucson, AZ) which is also a consignment store and according to its website has now expanded to 43 stores and 3 franchises in 16 states, with $72.9 million a year in revenue.

But again, the common element is that neither of these stores shell out money for merchandise. It's all on consignment and nothing is paid until merchandise is sold.

 

[Quadcammer]



I've had a similar idea recently. Having a classy brick and mortar location, designed to look like a great retail menswear store (Brooks Brothers stores, Zegna Stores, Hugo Boss, etc). Then hand pick suits, shoes, shirts and accessories from trusted purveyors on eBay. Many sellers have inventories of Canali, Ermenegildo Zegna, Brooks Brothers, Turnbull and Asser, Drakes, and the list goes on. Would it be viable for example, to purchase a brand new Zegna suit for 800 and sell in a retail environment for 1600? The store would have knowledgable sales staff that could speak to the quality of the goods and fit, friendly atmosphere and create a positive purchasing experience while still offering new and slightly used goods for half the price of full retail. I could even see myself hiring a tailor to be on staff in the back office, as well as have a gentlemen outside shining shoes to create a stir by the store front. Seems viable to me, but I think that would depend on marketing, foot traffic, and socioeconomic status of the neighborhood, and location and channels of advertising. The business model certainly is sustainable, but it all depends on people are willing to come into the shop to talk, try on, feel, and purchase, as opposed to many ebay shoppers who would rather buy in between commercials of top chef.

no god damn way..not a chance ever.

 

[CYstyle]



no god damn way..not a chance ever.

yep

if those guys are having difficulty selling it at 50% off on ebay, and hundreds of millions of people use Ebay, whats the chance you'll sell it regularly at the retail store?

 

[Quadcammer]

not to mention, if you want any foot traffic, you will need to stock up on a number of sizes. Given that the inventory will have to be sparse due to supply issues, you may only have 1 or 2 suits per size. And those suits in common sizes you see for 50% on ebay are not staples, but esoteric designs/colors.

no way sustainable.

 

[Steve Smith]



no god damn way..not a chance ever.

This is the correct answer.

 

[SkinnyGoomba]

I know of a few people who do this for a living, and they buy at Estate sales and other various auctions. They do have retail locations, but often have a book of go-to clients that love to collect high end pieces. The shops that don't have a good fallowing will sit on pieces forever.

They all have a steady income arm of their business that covers the day-to-day expenses and likely the overhead.