Families Are Feeling the Inflation Squeeze
It’s hard not to notice how expensive things are getting. From the gas pump to the grocery aisle and everything in between, inflation has led to higher prices across the country. Unfortunately, incomes haven’t been keeping pace, and many families are facing a tough budgeting situation. They need to buy necessities like food and clothing, but their dollars aren’t going as far as they used to.
With the goal of saving money, shoppers have and will continue to seek out resale opportunities. Kid to Kid, one of the nation’s leading resale apparel franchises, is helping parents trim costs on children’s clothing, so they have extra money to feed their growing kids, pay for household goods and much more.
The inflation situation—and how it’s expected to change
Families have been feeling the inflation squeeze for months, and recent numbers explain why. In June 2022, inflation hit a four-decade high. The consumer price index rose 9.1 percent compared to June 2021, and the inflation gauge increased 1.3 percent from May 2022. These numbers were even higher than economists expected them to be.
Apparel is one area where inflation is significant. Buyers are spending more on clothes in 2022 than they have in years. According to the U.S. Bureau of Labor Statistics, apparel prices rose 0.8 percent between May and June 2022 and are 5.2 percent higher this year than they were in 2021.
ThredUP’s 2022 Resale Report reflects these increases, reporting that apparel is the fifth-highest category where consumers are noticing higher prices. As a result, 44 percent of consumers said they’re cutting back on their apparel spend to save money.
Resale thrives during economic turbulence
Unfortunately, parents of young kids don’t always have the choice to avoid clothes shopping when prices climb. Kids are constantly growing. New shoes, pants and jackets aren’t luxury items for children—they’re necessities. And these costs can really add up!
This is where resale plays an important role. Kid to Kid stores help parents find quality garments for a fraction of the cost in traditional retail stores. Parents can save multiple dollars per garment, making a shopping trip much more affordable and stretching their budgets further. This is part of the reason why resale does so well during recessions.
Resale’s role during inflationary periods is not just anecdotal. ThredUP’s report found that 58 percent of consumers said secondhand has helped them in some way during a time of inflation. Not only does resale let them stretch their clothing budgets; they wouldn’t shop for as much apparel if they didn’t have secondhand options. When families have no choice but to buy their kids new clothes, secondhand is really a saving grace.
Kid to Kid is doing well and doing good
Kid to Kid’s resale clothing franchise is both a smart business choice and a huge boon to communities across America. Our stores are helping families find high-quality garments for low prices, allowing them to get necessary items like clothing and shoes when they need them. Accessible and affordable clothing will only become more important as inflation worsens.
As an owner of a Kid to Kid store, you can trust that your resale store will hold up well against economic turbulence, since families need clothes. When budgets get tighter, parents put more effort into finding great deals. Families who have never shopped secondhand before might turn to your store when prices get too high—and they might stick with resale because they like it so much!
If you’re a driven entrepreneur who’s passionate about building a thriving business that also helps struggling families and the community at large, becoming a Kid to Kid franchise store owner might be the perfect opportunity. Learn more about our children’s resale clothing franchise today.