Is the Future of Fashion Retail, Resale?

The Closet Trading Company founder and CEO, Johanna Zlenko, was recently interviewed by Franchise Times to discuss the surge of resale taking over the retail industry. Resale naturally has an eco-friendly nature, plus Gen Z’s consumer expectations have shifted to more ethical and environmental purchasing make now the perfect time to get on board with resale.

What differentiates The Closet Trading Company from other brands is their consignment model—for about 85 percent of inventory, they pay a consigner once the item sells. Though consigners do have the option to take money up front, it’s at a lower percentage, so the majority choose to wait. With this model, cash isn’t tied up in mountains of inventory that doesn’t sell, Zlenko said.

“We also have a very short ramp-up period and a lower initial investment for franchisees because they’re not buying inventory,” Zlenko added. “One other decision, which is important as it differs from our competitors in resale, is that we actually provide our franchisees with up to 18 months of inventory support, which we give them for free.”

“We are really leaning into a more curated, personal experience for customers, which is one of our selling strategies we’ve always had,” Zlenko said. “Our sales people are called stylists, and they really connect with consumers. This has helped us stay relevant, and that experience can carry forward online—but it’s not just waiting for customers to come in and buy stuff, our stylists have to reach out via social media and curate collections online.”

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