Kid to Kid Franchise Review: Q&A with Scott Sloan
CEO of the fast-growing resale clothing franchise opens up about why Kid to Kid is a best-bet investment
While many retail businesses are closing their doors, the resale clothing industry is booming. According to ThredUp, the $24 billion secondhand apparel industry is expected to more than double in size to $51 billion by 2023. It may seem like child’s play, but the kids’ resale industry specifically is a mature business.
Kids are constantly growing, making it challenging for families to keep up. However, resale stores such as Kid to Kid help parents save big on fashionable clothes at a fraction of the cost. Our 27-year-old brand buys and sells the best things that kids outgrow, attracting consumers from all economic levels, because most parents would love the opportunity to save money on clothing their kids.
A Kid to Kid franchise also checks all boxes for millennial parents who are not only the most eco-conscious demographic ever, but also think that buying secondhand clothing is as normal as shopping new.
In this interview, BaseCamp CEO Scott Sloan explains why owning a Kid to Kid resale clothing franchise is a worthy investment. Here’s what he had to say:
What makes Kid to Kid unique?
Sloan: We like to say that kids grow faster than paychecks. Kid to Kid provides opportunities for moms to save on the products they need for everyday life. Personally, it’s been fun to engage with the Kid to Kid brand in a different way as I’ve become a father and now a customer. My wife and I have a 3-year-old at home who’s growing like a weed, so we use Kid to Kid almost exclusively to keep him outfit with current styles at amazing prices. What he’s outgrown goes back to the store and we use that trade-in value to get new stuff. The model is truly a win-win-win for customers and vendors, franchisees and our franchisor organization that we see in the stores.
Not every business has this constant renewable customer base, because there will always be kids and parents who need affordable clothing. This is a great business to serve them. How else do you help them?
Sloan: Kid to Kid sells apparel, equipment and toys, all at a deep discount from the original retail price—typically 70% or more. We serve parents who have extra stuff they aren’t using anymore because kids grow fast. So we’re providing an opportunity for those parents to convert those clothes to cash, or store credit, instead of taking it to a thrift store or a donation center where they get nothing.
Why is Kid to Kid a good investment for an entrepreneur?
Sloan: One of the things that our franchisees like most about Kid to Kid is the fact there will always be a renewable source of customers coming in the door. But what I think is most appealing to a business centric-mind is the high-gross margins we enjoy at Kid to Kid. We pay about 30 percent for the clothes that we sell, which is about 70 percent in gross margin. That is not a typical gross margin in any industry and sets us apart in wide marketplace of franchise opportunities.
Talk about the longevity of this brand. It started in 1992 and has been thriving for more than 27 years.
Sloan: We’ve grown our business and support model in an organic, sustainable way and believe that we will continue that growth for many years to come. Our brand is award-winning, highly respected and recognized by franchise publications and customers across the country with locations in 24 states. We love our brand, have a strong name and believe our customers feel the same.
Why is now a good time to invest in a Kid to Kid?
Sloan: Industry studies indicate that within the next 5 years the resale market will double from $24 billion to over $50 billion. Kid to Kid’s well-recognized and mature brand is well-positioned to take advantage of this tremendous growth. Our unique value proposition is that we pay cash on the spot for high-quality children’s products. The benefit of being able to touch and feel the product is something that only brick and mortar retail can provide.