Thursday, March 08, 2007
Wheel of Retailing, evolution in consignment/secondhand
"Stack it deep, Sell it cheap, Stack it high, watch it fly, hear those downtown merchants cry!" One of the many Wal-Mart chants. Sam Walton was afraid of the Wheel of Retailing and therefore made the slogan: "Always low prices." The Wheel of Retailing concept states that new types of retailers usually begin as low-margin, low-price, low-status operations, but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced. This leaves room for new, lower priced formulas to move in and take over marketshare."
Sears was the cheapest and got undersold by Wal-Mart. Blokker was the cheapest and is getting undersold by Action. C&A -> Zeeman etc.
In secondhand, it is tempting to move into selling new goods. Speurders.nl is shifting it's focus to new goods with it's DAGKNALLER program.
The www.westfriesebeurs.nl has almost as much new stock as secondhand.
The Kringloop Alkmaar has half the store with cheap furniture imports from China, they import containers full of low quality tables, sift out and throw away the worst and then sell the rest.
And even Consignment city in Virginia is apparently no longer accepting used goods for consignment...
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