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Glitz and Goodwill: Nonprofit opens upscale boutiques

The Columbian
Published: August 27, 2015, 5:00pm
6 Photos
Shoppers browse at the new upscale O.C. Goodwill Boutique in Huntington Beach, Calif., on Aug. 12, 2015. (Allen J.
Shoppers browse at the new upscale O.C. Goodwill Boutique in Huntington Beach, Calif., on Aug. 12, 2015. (Allen J. Schaben/Los Angeles Times/TNS) Photo Gallery

ORANGE COUNTY, Calif. — The trappings of an upscale boutique are there: exposed brick, mannequins draped with flashy clothing and designer brands.

But the prices are decidedly cheap chic — the Stuart Weitzman black pumps that go for $350 at Bloomingdale’s are a steal at $12.99 — and the store’s owner is the last many associate with glitz: Goodwill.

Indeed, the new Huntington Beach, Calif., outlet is part of a little-known national initiative by the nonprofit provider of employment services to boost revenue and distinguish itself as it faces increased competition from other thrift stores and online retailers. It’s a strategy distilled in the store’s name — O.C. Goodwill Boutique.

The Orange County group has opened four high-end stores in the last two years and has plans for more, especially in the southern part of the county, where rents tend to be higher and residents wealthier.

“The boutiques set us apart,” said local President Frank Talarico Jr. “This is a really nice way to expand. We are definitely not going to stop.”

The number of boutiques has doubled to about 60 nationwide since Goodwill Industries International about four years ago began encouraging its independent regional organizations to roll out higher-end stores in certain markets.

The goal is to take advantage of luxury donations and get a leg up on the competition, including for-profit thrift stores such as Buffalo Exchange and Savers that proliferated following the recession.

But as the economy improves, there’s another potential head wind. Many shoppers are expected to migrate back to traditional retailers, according to a 2014 report from IBISWorld. It forecasts thrift industry revenue to decline, even though young adults are expected to increasingly look for “vintage” and “unique” clothing.

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Part of the threat comes from auctions websites and e-retailers such as Amazon that offer a bevy of used goods in a flash.

“They need to give people a reason to go into thrift stores again, because they have the disposable income to shop where they want,” said IBISWorld analyst Andrew Alvarez. “It forces them to step up their game.”

The upscale locations haven’t yet reached Los Angeles County, but the L.A.-area Goodwill Southern California held a pop-up boutique sale on a recent weekend at its Santa Monica store and is evaluating the idea of permanent high-end locations.

The first Orange County boutique opened in Tustin in 2013, selling brands such as Prada, Burberry and Chanel, said Corrine Allen, vice president of retail operations for the Orange County organization. Then came another in Lake Forest a year later, and in December, Goodwill launched “Rare,” a downtown Anaheim boutique that caters to the hipster crowd with a vinyl record listening station and clothing that skews younger, including a “great selection of flannels,” Talarico said.

“When you walk into one of our boutiques stores … the typical reaction we receive is, ‘This feels like Abercrombie’ or ‘This is like Anthropologie,’ ” Talarico said.

The Huntington Beach boutique that opened in June on Beach Boulevard welcomes shoppers with wooden floors and artfully arranged clothing displays.

On a recent weekday afternoon, bargain hunters sifted through a variety of higher-end hand-me-downs, including a pink Ted Baker dress shirt for $9.99 and 7 For All Mankind women’s jeans with frayed cuffs for $19.99. New at a department store, those goods likely would have fetched around $150 and $200, respectively.

“Oh, my God, it’s beautiful,” said shopper Lourdes Ennis as she surveyed the store.

‘I will be back’

But while the goods are nicer, and better displayed than at most Goodwills, it’s not all luxury. Ennis picked out a black blouse from fast-fashion retailer H&M discounted to $3.99.

“I will be back,” the 49-year-old Huntington Beach resident said, a Chanel purse slung across her shoulder. “I do like high-end. If I am here, you know they have good stuff.”

Upscale donations aren’t new for Goodwill, especially in Orange County, where the median income of $75,500 is nearly $15,000 higher than California as a whole.

But the initiative is allowing Goodwill to sell donations previously scattered at its typical warehouselike stores at the boutiques — in wealthier communities and at higher prices. For example, the same pair of jeans may cost $7.99 at a traditional Goodwill, but fetch $15 or $19 at a boutique, Allen said.

Gregory Stoffel, a shopping center consultant based in Irvine, said the strategy makes the consumer experience less of a scavenger hunt, but Goodwill may face difficulty finding quality locations, because landlords usually prefer new-goods retailers that attract customers less focused on a bargain.

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