New-look thrift shop begs question, How good will Goodwill get? - Brief Article

DSN Retailing Today, August 6, 2001 by Debbie Howell

HURST, TEXAS -- Once the shopping domain of bargain hunters and those on fixed incomes only, Goodwill stores across the country want to broaden their appeal with larger stores, improved merchandising and new touches such as a cozy coffee shop and used bookstore.

The Goodwill Superstore that opened last month in a suburb of Fort Worth, Texas, is the perfect example of this new strategy. A good way to describe the outlet is part thrift shop, part Old Navy. "We really wanted the store to have a professional look. People think of Goodwill as dark, dank, musty-smelling stores. We wanted to get away from that," said David Cox, director of marketing for Goodwill Industries of Fort Worth, which operates eight stores in the region.

This newest flagship store for the Fort Worth agency is twice the typical size of an average store, with 23,000 sq. ft. of selling space. This enabled the organization to add new features such as a bookstore and adjacent coffee shop, a new merchandise corner, wider aisles, a plus-size department and a Funky Boutique of trendy juniors and nontraditional apparel. Goodwill even hired a professional design firm, Studio B Dallas, to create signage in navy blue to complement brightly lit white fixtures and the carpeted floor.

"It definitely enhances our image. People have come in to tell us they're very impressed with the way the store looks," said Erin Quillian, sales director for Goodwill of Fort Worth.

On a national level, Goodwill Industries International operates more than 1,875 stores in the United States and Canada. Run by 181 separate districts, such as Fort Worth, each agency is autonomous, so there is no single prototype the stores are modeled after. But Christine Nyirjesy Bragale, national spokeswoman for the organization, said larger, more upscale stores such as the one in Hurst are part of a trend to compete with discount stores.

"We don't mandate anything to our member organizations, but this superstore concept is certainly one that is growing within Goodwill," Bragale said. "The whole idea is to attract more shoppers."

Goodwill began experimenting with larger stores about a decade ago. To date, it has modeled its newest retail centers after ones in the successful Portland, Ore., market. That Goodwill group has several large stores, like the one in Hurst, including some with cafeterias. The average Goodwill store nationwide has about 7,500 sq. ft. of selling space.

"We're also opening a lot more boutique kind of stores, such as ones dedicated to computers, clothing or antiques. We're trying to find that niche in the community to make it stand out," Bragale said. "Over the last 10 years, we've been opening larger and larger stores."

Cox said Goodwill of Fort Worth made the deliberate move into the densely populated, middle-income community in Hurst to broaden its appeal. The new store is expected to generate $1 million its first year, at the top end in revenue for the eight-store division where unit sales start at $500,000.

"We are always trying to up-market and appeal to a broader audience. You don't have to be poor to shop at Goodwill," he said. "You'll see BMWs and Mercedes [in the parking lot]."

As a charitable nonprofit organization, 87% of revenues raised by Goodwill go toward job training and community services to help those with disabilities or vocational disadvantages. More than half of agency revenue is generated through Goodwill retail stores, which sell donated used clothing, housewares, furnishings and other household goods.

Bargains are the primary draw of the retail format, where customers can find used men's suits for $21, second-hand wedding dresses in the $100 range, $2 T-shirts and all types of jeans for $6.50. The new merchandise section features closeouts and store overruns of household items, such as frying pan sets, kitchen utensils, toys, candles and dish towels.

An interesting diversion from the typical thrift shop is the merchandising in the Funky Boutique, which has apparel appealing to juniors primarily that include miniskirts and evening outfits. Cox said the store used a donated mock Suzuki Jeep as an apparel display. In another section of the store, two old tires give a hip look to the men's jeanswear shelves.

The Hurst store has twice the number of dressing rooms as found at other units, with eight bays, and an expanded used book section near the Good Books Cafe, a first for the Fort Worth division. In the coffee shop, shoppers can buy gourmet coffee, such as a cafe mocha or cappuccino for $1.25, or coffee of the day that sells for less than $1. The shop also sells pastries, pies and sandwiches.

"We wanted this to be the place where people step back and take a breather," said Quillian. "It's been a fairly popular spot since we opened it."

Cox said if successful, some of the ideas used at the Hurst location may be rolled out to other stores in the Fort Worth division. Another popular feature has been the drive-through bay for donations. The Hurst unit will also be the first in the Fort Worth division to begin using bar code scanning, he added.