Oldies but Goodies Keep Vintage Retailers in the Money

Despite the poor sales numbers being reported by many mainstream retailers, vintage-clothing sales are holding strong for California’s growing legion of after-market retailers. However, rustling up merchandise has become increasingly difficult.

That’s because the boom in online sales and strong consumer demand for all things old has tightened the supply of vintage and after-market clothing significantly over the past couple of years. That has retailers working harder—and paying higher prices—for vintage clothing.

The thirst for vintage clothing has helped suppliers such as Gardena, Calif.–based American Vintage Clothing, which has a warehouse full of period pieces from the 1960s through the 1990s. Its stock ranges from preppy 1980s-style LaCoste sweaters to bowling shirts from the 1950s.

American Vintage also owns Yellowstone, a vintage-clothing boutique on State Street in Santa Barbara, Calif., so the owners understand the supply-and-demand issues affecting the vintage market.

“It’s getting harder and harder to find good vintage pieces right now. It’s like a needle in a haystack,” said company principal Stephanie Haugen, who said consumers and owners of old garments are resorting to online vehicles, such as Craigslist and eBay, to get rid of their old clothes. “Fortunately for us, we’ve been in business for 30 years, and my husband [co-owner Paul Haugen] has established great sources and contacts.”

But others aren’t as fortunate. A case in point is Good Stuff, a thrift store in San Rafael, Calif. It closed its doors after 22 years in business. The owners blamed it on shrinking donations.

Even nonprofit stores, such as Goodwill and the Salvation Army, are seeing used-clothing donations drop, although that hasn’t hurt their bottom lines.

Goodwill reported an 11 percent gain on sales for the first half of 2009. They have also gotten smarter and charge more these days for that old pair of blue jeans.

Many vintage dealers rely on nonprofit stores for supply.

“[Nonprofits] have gotten wiser,” noted Ronny Kleyweg, owner of the Animal House vintage store on the Venice Boardwalk in Los Angeles. “They’re hiring younger people to go through the donations and marking the prices up.”

Another factor affecting the vintage market is the economy. Kleyweg has noticed that people are wearing their clothing longer than before, hurting Kleyweg’s chances of scoring a top-end sale.

In the good old days, Kleyweg would regularly score big hits on vintage clothing. He sold a pair of World War II–era Levi’s jeans for $2,500 once and a cowboy jacket for $5,000. He has sold vintage Hawaiian shirts for as much as $4,000 apiece.Travelers ticket to paradise

Tourists make up a big portion of sales for vintage retailers. For a while, Japanese visitors and other Asian customers, along with store owners, were wild about anything old. “One [Japanese] guy would come in and pay my rent and my employees’ salaries for the month with one purchase,” Kleyweg said. That’s changed. With the Japanese economy stumbling in recent months, there are fewer Japanese tourists than before.

Stephanie Haugen has also noticed a drop-off in Asian retailers and collectors. It’s been replaced somewhat with business from Great Britain, which has lately had a hunger for Americana items and 1980s clothing.

“I can’t keep Members Only jackets in stock right now,” Haugen said.

With traditional sources tightening up and wholesale operations such as American Vintage few and far between, vintage retailers are turning to online sources and carrying other merchandise.

Kleyweg, who used to sell only vintage pieces, now stocks about half his store with contemporary items. He has brought in a mix of new clothing from brands such as Ella Moss, Splendid and Joe’s Jeans over the past several years to augment his 25-year-old business. He has also built up a strong business selling 1970s-era rock T-shirts and vintage fashion books and magazines.

Another important source of vintage fashion for retailers has been flea markets and swap meets, which are seeing fewer vendors, further hampering supply because flea market attendance is up.

The famous Rose Bowl Flea Market in Pasadena, Calif., is still a key source for stylists, designers and vintage-clothing dealers. Still, there are now large gaps of empty spaces in the clothing section of the outdoor mart, held on the second Sunday of the month. A couple of years ago, the section was filled to capacity.

The steady base of Asian buyers who shop the show for denim, North Face jackets and rock T-shirts has also dropped off, reported regulars at the Aug. 9 market. Instead, vendors are seeing more business from local consumers and buyers.

Organizers of the Vintage Clothing & Textile Show (www.caskeylees.com), which takes place Aug. 30 at The Pickwick Gardens in Burbank, Calif., said the 24-year-old show has maintained business during the recession and is expecting about 65 vendors, the same as last year. They will be showing everything from Victorian-era clothing to punk-rock looks along with home furnishings.

Show producer Natanya Caskey said in light of the economy, she is seeing more consumers coming to the show but trading down, opting for slightly used designer pieces rather than paying full price for a new garment.

“I think the vintage market is holding its own despite the economy. It is more affordable to purchase an item that is slightly worn or used,” Caskey said.

She observed that luxury items from European labels such as Louis Vuitton and Gucci are especially popular. But new trends are also popping up, such as more women buying vintage underwear to wear as regular garments.

Another source for vintage goods is the Vintage Fashion Expo, held in San Francisco and Santa Monica, Calif. The event is owned in part by Doris Raymond of Los Angeles boutique The Way We Wore. Raymond has one of the largest collections, spanning a half-million pieces of vintage fashion going back to the 19th century.

As vintage grows, retailers are getting smarter and focusing on niches. Kathleen Schaaf, owner of Meow, a Long Beach, Calif., vintage boutique, sells mostly dead stock from the 1940s through the 1980s. Getting ahold of older product from the 1940s and 1950s is definitely a challenge, but she has been able to keep her store stocked with goods from the 1960s through 1980s.

“We are holding our own. There was a little bump, but we’ve benefited from tourist traffic,” she said. “There are lots of vintage shops in the area [bringing in more traffic], and it’s a commuter-college destination. That has helped.”

Shareen Mitchell owns two Shareen Vintage boutiques, in Los Angeles and New York, and has found a niche selling what she called “fashion-oriented vintage” at moderate price points ($40s to $50s). “I think people are over expensive vintage. They don’t want a Missoni dress for $500. They’ve become savvy. They know they can get style at a price that’s comfortable for them.”

Mitchell has not been affected much by supply, because she buys against trends. “I bought a lot of ’80s and grunge merchandise last year, and it’s hot right now. I’m buying ’50s right now, and it’s not as in demand, but it probably will be next year.”

Mitchell characterized her business as strong and growing.

“I know I can sell at higher price points, but I’m not driven as much by money as by contacts and reputation.”