Op-shops the latest fashion as retail opportunity knocks

Once considered musty places where down-and-outers riffled through boxes, op shops have defied the doom and gloom in the retail sector and experienced a surge in sales.

At the recently opened Salvos store in Chapel Street, Windsor, a line has formed outside the change room. It's lunch time and men and women are scouring shelves and clothes racks, inspecting tweed jackets, crockery and suede stilettos.

Well-known retailers have vacated stores on the signature shopping strip and ''for lease'' signs are becoming more common.

But business is booming for Salvos stores, with Victorian sales expected to top $42 million this financial year, according to chief executive Allen Dewhirst. This compares to $30 million five years ago and $20 million a decade ago.

''We have grown rapidly. This is a good thing for shoppers and a good thing for our charity.''

The increase in sales has been spurred by two things - the mainstream adoption of op-shopping and a reduction in discretionary spending.

It's a similar story for St Vincent de Paul, whose Victorian op shops have an annual turnover of $25 million, with sales rising 8 per cent last year.

''We are competing with other stores in shopping strips,'' says Vinnies Centres Victoria general manager Garry McBride. ''With the high cost of living and gas and electricity going up, people are looking to make genuine savings rather than getting the latest fashion on the credit card.'' The quality of donations has also improved, Mr McBride says.

About half the money generated by op-shops goes back into the community - the rest is spent on rent and rubbish disposal, he said.

by HENRIETTA COOK

February 1, 2012

Degani

“I have to say that it is no coincidence that the aggressive growth phase that Degani has enjoyed in recent times has coincided with the development of our working relationship with Angelo Kondos and The Lease Wise Group.”

George Pezaros, Degani - Managing Director

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Mrs Fields

“We have been using the services of Leasewise for several years now to help us grow and maintain our network. Their services are very professional and
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- Andrew Benefield, Mrs Fields – Owner

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