October 12 - October 18

Current Issue

IBLV Blogs

Special Publications

Search In Business

In Business on TV

In Business in the Media

The List

Book of Lists

Meetings

Event Photos

About InBusiness



Real Estate and Development
Seller of used children's items finds LV a good fit
By Mark Hansel / Staff Writer

Heather Moler holds 2-month-old Sarah Foulke while shopping for baby clothes at Children's Orchard, a reseller of children's items.
Photo by Sam Morris

A local mother goes to the trendiest store in town and shells out several hundred bucks so her little one can have the most adorable outfits available, then a sudden growth spurt turns a cool wardrobe into a closet full of useless items.

Or maybe a mom has a house full of kids and a limited income and spending hundreds of dollars on clothes that will be outgrown before they are worn out is just not an option.

These are just a few of the reasons why Children's Orchard, a national resale/retail chain has become a popular alternative to trendy shops for a lot of parents.

The Michigan-based company, which has two stores in the valley and is planning to add as many as six more, offers "gently used" children's items, including clothing, furniture and toys, at prices well below retail.

Marivel Sosa, who owns the Children's Orchard on Ann Road in Las Vegas (there is also one on Green Valley Parkway in Henderson), says her personal experience buying for three kids is one reason she became a franchise owner.

"I know how difficult it is to keep up with trends," she said. "And if you have more than one child, there's almost no way most people can buy everything new."

With that in mind, Children's Orchard has spent 27 years developing a sort of national recycling center where customers can buy high quality items for about 60 to 80 percent below retail, in most cases.

"It's not just people who don't make a lot of money coming to buy from us, everybody comes and buys from us," Taylor Bond, president and chief executive of Children's Orchard, said. "You're going to find more different brand names in our stores than anywhere you can possibly go because we don't have any allegiance to anybody."

Bond admits it was a little tougher to convince people to buy used items for their kids a few years ago, but several factors have made it an easier sell now.

Concerns about the environment and an increased emphasis on recycling, Bond says, have people who might have shunned buying used items in the past thinking differently now. A downward economic spiral in some regions, combined with the escalating cost of trendy children's items, has also combined to make used items an attractive option.

The main reason for the company's growth, according to Bond, however, is the quality of merchandise that is offered and the price.

"Many people can't believe the stuff is used," he said. "But once they see what it costs, they are convinced."

New and used clothes and toys fill shelves and racks at Children's Orchard, a reseller of children's items.
Photo by Sam Morris

The store sets appointments for customers to bring in items that are to be resold and offers either cash or a store credit for the merchandise. Customers who choose a store credit get a bonus.

Anything that is not up to company standards is refused, but most stores offer to give items that can't be resold to local charities. This arrangement not only provides items to needy youngsters, but also keeps customers from having to make an extra trip to drop the stuff off themselves.

There is some discretion among store owners on what they will accept, but the company has pretty stringent guidelines.

Sosa, for example, will not accept clothing items that are stained, and none of the stores will resell car seats, for safety reasons. Sosa said the bulk of her business is clothing, but strollers, cribs, toys and even outdoor play sets are also popular, and things move fast.

"Customers come in all the time looking for something they saw a few days ago and it's gone," Sosa Said. "I tell them if they see something they like, they better get it while they are here."

The stores also offer promotions to make sure the merchandise keeps flowing. Sosa has bag sales where clothing that has not moved is set out on tables and customers can buy everything they can stuff in a bag for $5.

There is a Moms Club, which provides advance notice of sales, gift cards and birthday presents for kids. There are also other promos, such as Moms Night Out, an after-hours shopping opportunity, designed to give moms an evening break from the kids.

Bond said many franchisees, like Sosa, are former customers who have embraced the concept and recognize the need for affordable children's items.

The initial franchise investment is about $40,000, which consists of a $25,000 franchise fee and $15,000 to secure a territory. The total investment is between $135,000 and $215,000, depending on the size of the store and the location. The royalty fee is 5 percent and there is also a 1 percent advertising fee.

Bond said some franchisees choose to open more than one store, while others are content with just one location. A typical store size is initially between 1,500 and 2,000 square feet, but many franchisees expand to twice the initial size because of consumer demand. Sosa said she is considering an expansion because the space next to her shop is available, but she has not made a final decision yet.

The company provides classroom and in-store training and also helps scout locations and negotiate lease terms. While Bond encourages a hands-on approach by franchisees, he says buildout, grand opening and ongoing support is also provided.

Bond, who has been the CEO since 2004, says the company is actively seeking franchisees in Las Vegas and other markets. There are currently about 100 franchise stores in 25 states, and Bond says he is confident the Las Vegas market can sustain three times that number.

Mark Hansel covers retail and real estate for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702)259-4069 or at hansel@lasvegassun.com. Heather Moler holds 2-month-old Sarah Foulke while shopping for baby clothes at Children’s Orchard, a reseller of children’s items. Sam Morris

IBLV Homepage

 
A member of the Greenspun Media Group, publishers of:
Celebrity Week |  Home & Design |  In Business |  Las Vegas Life |  Las Vegas SUN
Las Vegas Weekly |  Ralston/Flash |  LV Magazine |  Vegas Golfer |  VEGAS Magazine

Use of this Web site constitutes acceptance of the InBusiness.com Terms of Use and Privacy Policy.
Advertise: On InBusiness.com.
Work for Greenspun Media Group. All contents @ 1998 - 2008 In Business