Ever wonder how consumers feel about your franchise? Franchise Times editorial staffers check out three brands in a different genre each month, and report back in FT Undercover.
From left, Plato’s Closet is picky when buying used clothing, Uptown Cheapskate has trendy inventory and Reporter Megan Glenn models her haul from Clothes Mentor.
I’ve had plenty of Plato’s Closet experiences, some of which earned me a good chunk of change, but mostly I walk out with three bags of clothes I still have to donate and maybe $10 in my pocket. I’ve always admired Plato’s Closet, part of Minneapolis-based Winmark Corp., for its business model. The brand buys clothes from those looking to shed items and resells them for a profit, so initial inventory for operators is a lot cheaper than many retail franchises. As a customer, though, the brand doesn’t often deliver. Are my clothes ugly? I don’t think so, but I’m biased. I brought in four giant bags recently to a suburban Minneapolis store with low expectations. The store was packed to the brim with bags from other sellers, so it was about five hours before mine were ready. The kind cashier told me she could take six items for $14 and some change. Not a lot, but given I’ll take the rest to Goodwill, OK. What’s odd to me is Plato’s took parts of a Travis Kelce Halloween costume, an old purse and some Target-brand sandals, but returned to me some newer, name-brand coats.
The upshot: Plato’s is a great option for those who would otherwise donate their clothes, but don’t expect to make big bucks. —E.W.
Imagine an Urban Outfitters, but 60 or 70 percent less expensive. That’s Uptown Cheapskate. The bright, clean store with well-organized displays showing off an eclectic yet trendy mix of styles drew plenty of shoppers on a Sunday afternoon near Phoenix. Brand names ranged from Coach, Michael Kors and Brandy Melville—some items still with the original tags—to Free People and North Face. And while the target demographic is decidedly younger than this mid-to-late-30-something, even the most discerning customer can likely find some steals. The Lululemon section was especially impressive, with like-new leggings, usually priced between $98 and $128, for $34.99. It’s clear Uptown Cheapskate, or at least this store, leans toward the gentler side of gently used, as the clothing, shoes and accessories examined on this visit showed nary a sign of wear. Like its fellow resale franchises, the brand emphasizes its focus on sustainability in a fashion industry that’s among the world’s major polluters.
The upshot: Stylish and wide-ranging, Uptown Cheapskate wins with its inventory. While unable to comment as a seller, judging from the number of customers walking out with cash, this store does a brisk business. —L.M.
Consignment shops, I think, warrant caution. Clothes Mentor near Minneapolis won immediate points for not smelling of stale, used clothing. I had a grocery bag full of old pieces, some still in style, some not so much. The shop took what it could, giving me $12 in store credit that I immediately used to buy a pair of Spider Gwen turquoise heels and a skirt. It really was as simple as handing over the clothes. I opted to shop around while I waited for my offer. Overall, my impression of Minnesota-based Clothes Mentor was more akin to a boutique than a consignment shop. Clothes were sorted by cut, then size, and organized by color. It really felt like walking into someone’s big closet. There were a few items I would never buy, like velvet crop tops, but nothing felt out of style. For those sick of fast fashion, Clothes Mentor is a polished alternative. Not only was I able to sell perfectly good pants for someone else to use, I was part of a cycle of others doing the same thing.
The upshot: A low offer on the clothes, sure, but the overall experience was notably positive. And taking store credit yielded a higher amount, turning seller into buyer. Smart move, Clothes Mentor. —M.G.