What Makes Kid to Kid Recession-Resistant?
A key component of successful business ownership is offering a product or service people need, even in challenging economic times. Retail clothing stores, in particular, often experience sales fluctuations with the buying public having less discretionary income in their budget.
Rest assured, secondhand stores like Kid to Kid thrive during every economy, unlike their traditional retail counterparts. Check out the top reasons Kid to Kid is considered a recession-resistant business.
Clothing is a need
Retail clothing stores might carry a variety of items—some essentials and some non-essentials. When stores largely sell things that are considered “wants,” their sales are usually the first to take a hit. After all, during times of economic uncertainty, customers need to focus on necessities first.
Thankfully, clothing is usually considered a need, especially when it comes to children. Given how fast babies, toddlers and children grow out of clothes, they don’t just want new items. They need new jeans, shoes and jackets to be comfortable and appropriately dressed. Kid to Kid’s range of children’s secondhand clothing meets families’ needs for high-quality and affordable clothes.
Low prices suit economic distress
In periods of economic hardship, customers’ budgets get tighter. Families have less money to spend on everything, even necessities. Sales and low-cost items are essential to stretching their limited funds.
Secondhand clothing is ideal for these customers. Buyers can find gently used items for a fraction of what they’d cost in a traditional retail store. This way, they’re able to get more for less.
Kid to Kid is a well-known name in the children’s secondhand clothing market. Cost-conscious families who need to clothe their growing kids can turn to us to find high-quality and even like-new garments for $5 apiece, on average. Our low prices relieve the stress of shopping on a tight budget while expanding their clothing options.
Our customer base is revolving
Having a solid customer base is essential for weathering economic uncertainty and emerging victorious on the other side. If stores cater to fleeting trends, but customers don’t buy right away, there might not be a market for their items later.
We have a built-in and constantly renewing customer base at Kid to Kid. Children don’t stop growing, and families routinely have kids. By serving expecting mothers, babies, and kids up to age 12, we’ve captured a market that stays with us for many years and refreshes over time.
The secondhand market is booming
A business’s success and growth before economic hardship is often an indicator of its ability to survive a recession. If an industry is already struggling, its chances of getting through are much lower.
The secondhand clothing market has been growing tremendously in recent years. By 2025, the global industry will reach $77 billion—more than double its 2021 figure of $36 billion. This growth and strength in the market position secondhand clothing stores for success, even when the economy isn’t flourishing.
It’s also important to note that secondhand stores didn’t just survive in previous recessions—they thrived. As budgets got tighter, customers turned away from more expensive traditional retail options and toward cheaper, more accessible resale. After customers got used to shopping secondhand, many continued, even after the economy rebounded.
Make a strategic investment in Kid to Kid
Kid to Kid’s resale clothing model is a boon for both store owners and shoppers during and after times of economic uncertainty. Given our franchise’s success, entrepreneurs can feel more confident investing in a business in an industry that’s growing every single day.
Are you interested in investing in a recession-resistant business and taking control of your financial future? Request more information to learn all about Kid to Kid and our exciting franchise opportunity!