Posted by Lending Club :: June 8, 2009 @ 10:51 am

With consumers trying to stretch each dollar further, it should come as no surprise that thrift stores are seeing a surge in sales.

According to USA Today, February revenues at Goodwill Industries stores increased 7.2% over last year. A similar increase was seen at a group of Salvation Army thrift stores. The rise in sales is likely due to an influx of new customers who are turning to thrift stores out of necessity or an increased awareness of their financial situations, due to job loss or the general state of the economy. Thrift store regulars may also be increasing their own reliance on the stores as well.

One downside of strong sales is that all thrift store shoppers may find great deals harder to come by. Rising sales means that fewer items are left for purchase. Donations to thrift stores are also way down. The cited article said that Salvation Army donation pickups in six states for the first eight weeks of 2009 were down nearly 13% from last year. Higher value donations, such as furniture and major appliances, are down the most. This is likely tied to the downturn in the housing market as well as the slow economy. Lower supply and higher demand generally raises prices, but in the case of thrift stores – whose prices generally remain unchanged – this situation simply results in a smaller supply of high quality items.

Though rising thrift store sales may be driven by need, this good financial habit can be continued when situations improve. As the economy rebounds, you’ll likely be able to find even better thrift store deals as other consumers return to their traditional retailers of choice. Their newfound prosperity may also increase the quality and quantity of donations.

Have you visited a thrift store for the first time or relied more heavily on the products they offer?