Chapter 7 Fashion Promotion and Retailing
137
Thrift shops (sometimes called resale shops) sell
items that have been owned and used by others.
They may be run by non-profi t organizations.
Merchandise is usually donated by members of
the community. Volunteers sometimes staff the
shops. Some of the goods have old styling or
look used. Other times, beautiful almost-new
suits and gowns are donated and sold. This win-
win situation allows shoppers to get some great
items at very low prices, while the proceeds go
to charity. Some resale shops sell apparel on con-
signment, so the previous owner receives some
money. In all cases, recycling saves resources.
Variety stores started as fi ve-and-ten-cent
stores. They now offer wide assortments of lower-
priced merchandise. They have inexpensive
clothing as well as stationery, plants, and toys.
The checkout counters are near the exits.
Personal selling is done without a store. It
moves cosmetics, jewelry, clothing lines, and
other merchandise directly to customers through
parties or showings in homes. Orders are taken
and the items are delivered to the customer
later. The merchandise is usually of high quality,
but may also be quite highly priced.
A leased department is a department within
a store operated by an outside fi rm. Usually the
store supplies the space and essential services
in return for a fee or percentage of the sales.
Name-brand designers sometimes lease a
department within a retail store. Shoes, fi ne
jewelry, and restaurants are other examples of
leased departments.
Retail Imports
Offshore sourcing is the term used when
goods are bought from overseas producers. Most
large retailers do some direct importing from
abroad. Some retailers produce their own pri-
vate label goods in overseas contract factories.
There has been a fast rate of growth in
apparel imports. A larger percentage of offshore
sourcing is done each year. See 7-16.
Many retailers are in favor of imports. As
mentioned previously, imports are cheaper for
retailers to buy, and they can be sold to con-
sumers at about the same prices as domestic
goods. Thus, imports allow retailers to have
higher markups and bigger profi ts.
There are other reasons why many retailers
like imports. Sometimes a retailer can import new
and different merchandise that no one else has.
Also, garments that require much handwork
may not be available from domestic sources. If
retailers want these garments, they may have
to be imported.
There are risks for companies doing off-
shore sourcing. Long lead times require early
buying decisions, since orders are placed much
farther ahead of when they will be received and
sold. Retailers are forced to order next year’s
seasonal merchandise before they know what is
selling well this year. It is hard to order the right
merchandise or the right quantities. With early
ordering, imported goods must be fi nanced for
a longer time than domestic orders. This leaves
less money available for retailers to buy other
goods to sell in their stores.
7-16
Container ships loaded with foreign-made apparel
arrive in U.S. ports daily. Imports make up a large percentage
of retail inventories.