Hot competition at bottom of market

From left: Shopper Bill Keane  and volunteers Letty De Bono and Sister Joan Hamill  at the...
From left: Shopper Bill Keane and volunteers Letty De Bono and Sister Joan Hamill at the Society of St Vincent de Paul $1 shop in South Dunedin. Photo by Linda Robertson.
SPCA Op Shop manager April Elliott in the Northeast Valley store.
SPCA Op Shop manager April Elliott in the Northeast Valley store.

After the recent closure of the Salvation Army Family Store in South Dunedin due to increased competition, Julie Howard investigates the charity shop scene. 

The battle for the budget shopper is heating up.

Op shops have had to adapt to a changing environment where consumers can pick up cheap clothes and other items from big-name stores with budget lines.

One has responded by making everything $1 while others have moved in the other direction by selling more upmarket items.

The Otago Daily Times this week visited The Hospice Shop in George St, Presbyterian Support in St Andrew St, the SPCA Op Shop in Northeast Valley, St John Community Store in Macandrew Rd, and St Vincent de Paul stores in North and South Dunedin.

St Vincent de Paul centre and pastoral co-ordinator Sarah Strang said the South Dunedin shop in King Edward St had been doing a roaring trade since it changed its prices to $1 an item 18 months ago.

They got the idea for the $1 shop from staff outside the region and decided to give it a go. It was such a success they kept it going.

Families could "fill a bag'' of children's clothing for $1 too.

It's good.

They are always really busy.

Clothing was sorted at the George St shop in North Dunedin and the volunteers decided which stock went to South Dunedin.

If the garment was really nice but had a button missing or a mark it was sent to the $1 shop, she said.

Stock not sold at the main shop was sent there after two months.

Second-hand clothes at the shop had lasted because of the quality of the fabrics and the workmanship, she said.

"Something cheap from Kmart and The Warehouse is not going to last. Once it's gone through one person it is not good enough for the second-hand shop.''

If they sold everything for $1 at the George St shop they would probably run out of clothes, she said.

St Vincent de Paul South Dunedin volunteer Sister Joan Hamill (85) said this was her third year as a volunteer and at first she wondered how the $1 shop would go.

"But I would say it has gone very well.''

Three "lovely young men'' came in one day and one made a beeline for really good suits.

They all picked a tie and they left the shop in suits, she said.

When the men paid, she told them the price was $3 each, but they refused and paid $5 each, Sr Joan said.

Across town at The Hospice Shop on George St, shop manager Lesley Porter said stores like Kmart catered for costumes and dress-ups so people did not go to second-hand shops like they used to for those items.

Since recently moving to their George St shop, she had focused on making the store more upmarket.

She still kept prices affordable as the shop catered to beneficiaries, students, grandparents, pensioners, and cruise ship visitors, she said.

"We get everybody.''

The one item which failed to sell was children's clothing, despite the shop selling upmarket-label brands.

She guessed this was because families could shop at the clearance racks in the big chain stores.

Business was going great and she just signed their lease for another three years, Miss Porter said.

Hospice op shopper Kim said she was a great believer in upcycling and pre-loved goods.

"Not only is it easy on your wallet, it's easy on the planet.''

Her stylish outfit was all pre-loved, and consisted of an $8 Trelise Cooper top, $4 Waugh pants and a $6 possum-fur-blend cardigan.

The most expensive item was her $60 black possum poncho which normally retailed for $275, Kim said.

Presbyterian Support St Andrew St shop manager Chrissy Anderson said they specialised in clothing and had a high turnover of goods.

They kept their prices low because of competition from Kmart, The Warehouse, Farmers and the $1, $2 and $3 shops.

She kept an eye on what was happening in the retail industry, she said.

They sold a lot of everything, particularly menswear and children's clothing, which reflected their customer base of workers, students and beneficiaries, she said.

Op-shopping had to be great experience and a bit of fun for people, she said.

In Northeast Valley, the SPCA started its own store in the former Salvation Army premises.

Prices ranged from 50c to $4 for a range of clothing, shoes, books and bric-a-brac.

More upmarket fashion items were priced from $10. Bedding items started from $2 and went up to $50 for a high-quality duvet.

Shop manager April Elliott said she had worked for more than 20 years in op shops and prices were often too high.

"Here, I've priced it accordingly, and I'm my own boss. I price [things] myself.

"It is thriving. It has exceeded our expectations.''

While customers still included students, there was now a new group of upmarket shoppers, and people who never used to visit op shops, she said.

She was especially grateful for the quality of the stock that was being donated by the community.

They had more sales with quality goods, and she was doing more with less, she said.

Kmart was popular with young parents for cheap children's clothing but the clothing did not have the quality, she said.

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