Business is Booming at Plato’s Closet in Albany
Wednesday, September 28th, 2011
When Plato’s Closet opened in Albany on Aug. 4, the gently used clothing store rang up the second highest opening-day sales in the chain’s history in Georgia. More than 200 shoppers were lined up around the block before the doors opened.
“We had been buying clothes for seven weeks to build up our inventory,” said Stacey Scott, owner of the Plato’s Closet store in Albany. “I think people had seen what we had in stock and that plus our advertising created a lot of interest.”
Plato’s Closet is a franchise retail concept that targets 13- to 24-year-old girls and guys with brand name, gently used clothing and accessories. There are 17 retail locations in Georgia, featuring fashion-forward brands such as Abercrombie & Fitch, Forever 21, American Eagle, Roxy, Victoria Secret and many more. According to Scott, business for Plato’s Closet stores has been booming over the last two years with the recession and slow recovery.
Winmark Corporation is the franchisor for Plato’s Closet. The company is based in Minneapolis, Minn. and is the franchisor for three other retail concepts: Once Upon A Child, Play It Again Sports and Music Go Round. Stores for all four concepts buy, sell, trade and/or consign high quality, used merchandise.
A Light Bulb Went Off
With two teen-aged daughters, Scott had often shopped at the Plato’s Closet store in Columbus, Ga. That was the store closest to Albany.
“I had lost my job two and a half years ago. On one visit to the Columbus Plato’s Closet, a light bulb went off. I thought this is what I should be doing,” Scott said.
That was in November 2010. Scott began researching the idea, learning all she could about the franchise and how the business works. The franchisor provided names and numbers of current Plato’s Closet franchisees and Scott called as many of them as she could. She also researched local shopping patterns.
“At first the company wasn’t interested in locating a store in Albany because only 100,000 people live in Albany-Dougherty County. But when I told them there’s not another mall within an hour and a half drive from here and that 500,000 people from surrounding counties travel to Albany to shop, then they were interested,” she said.
Our Plan Works
After gaining her franchise, Scott spent two weeks in Minneapolis attending training classes with Winmark. In June, two weeks after she began buying used clothing for the new store, a support team from Plato’s Closet visited to make sure the buying was on target.
“They were great. In Minneapolis, they said if you follow our plan, you’ll be successful; our plan works. They were here for our grand opening and they’ll be here later this week to review our reports with us,” Scott continued.
According to Scott, Plato’s Closet offers excellent processes and systems. For example, when a customer brings in used items, one of the store’s buying staff members evaluates the condition, brand and age and then looks up the brand on the computer to identify the amount to offer for it. The system also provides the appropriate price Scott should charge for the item and generates a price tag.
“We also receive a quarterly label guide that covers all the brands and identifies what’s hot, warm and cold,” she said.
Scott has the flexibility to advertise however she’d like, but Plato’s Closet provides guidance based on what’s proven effective in other markets. Currently, Scott is advertising her store on outlets such as MTV and ABC Family that appeal to the stores demographic.
According to Scott, Plato’s Closet is currently in need of fall and winter clothing for girls and guys. Customers can choose to sell any or all of the items they bring in for the offered amount.
“We offer cash on the spot or customers can trade their items for merchandise we have for sale in the store. That allows them to save by only paying sales tax on the difference,” Scott explained.
More information on Plato’s Closet is available at www.platoscloset.com. Visit the Albany Plato’s Closet at 2524 Dawson Road or online at www.platosclosetalbanyga.com or call 229-435-8155.
