Childrens Orchard Taps into Mom Psyche with unheard of upscale-resale concept

Children’s Orchard is making retail history, merging two supposedly incompatible concepts into one new, highly successful niche category: “upscale resale.”

As the nation’s first Franchise of gently used and new name-brand children’s clothing and products in a unique, upscale boutique environment, Children’s Orchard has nearly 100 thriving locations in 23 states, selling 5 million items to approximately 1 million customers each year. Upon entering a Children’s Orchard store, two “wow factors” immediately emerge: customers are struck by a classy atmosphere filled with quality products, and they are thrilled to be handed cash for items their own children no longer need.

“From a consumer standpoint, our concept strongly appeals to parents because we help them afford fashionable, quality clothes and other products for their children, and at the same time we pay cash or give them store credit for quality clothing, toys, cribs, strollers and accessories that their kids no longer use,” said Taylor Bond, Children’s Orchard President and CEO. “And entrepreneurs are attracted to our Franchise Opportunity because it’s a fun concept that, with the aid of our business system, is easy to operate,” said Bond, adding that Children’s Orchard projects to have 300 locations open by 2007.

According to the USDA’s “Expenditures on Children by Families 2000 Annual Report,” a middle-income family in 2000 spent about $165,630 to raise a child to age 18, and the average three child, two-parent, middle-income family spends $26,940 a year on child-related expenses. Children’s Orchard, which offers name brand clothing, toys, equipment, furniture and accessories for children up to 7 years old, helps “takes the edge off” the costs of raising children by giving parents an upscale environment they feel proud to do business with.     

Children’s Orchard also provides an outlet for charity. Items brought in that don’t meet Children’s Orchard quality standards for selling can be left at the store for donation to local organizations serving the needy.

‘Seeds’ to Success
After 25 years, Children’s Orchard is seeing renewed growth with the recent addition of Bond, who has a strong background in Franchising and resale. The concept also exists in a healthy marketplace in today’s economy: The children’s products market is growing and will soon reach nearly $200 billion per year. In addition, according to the National Association of Resale and Thrift Shops, there are more than 15,000 resale shops across the country, with growth expected at approximately 5 percent a year. NARTS projects that resale will continue to gain popularity and become an even more important segment of the retail industry as today’s savvy shoppers continue to seek the best value for their dollar.  

Citing the company’s mission to build prosperous retailers and valuable businesses, Bond said Children’s Orchard trains its franchise owners to think like business people, not just how to be good sales people. The company’s top priorities are initial and ongoing support for Children’s Orchard franchise owners, starting with a two-week training session at corporate headquarters in Ann Arbor , Mich. , where franchisees learn how to run and manage a store, including how to source and buy product, marketing, and financial management.  Children’s Orchard franchise professionals also assist with site selection, lease negotiation, and the Grand Opening.  Ongoing support includes two annual national conventions, websites and email for franchisees and an online network to help franchise owners manage their businesses, source vendors and communicate with each other.

Low-Stress Business
Children’s Orchard franchise owners include former schoolteachers, daycare professionals, manufacturers, engineers and retired grandparents wanting to remain active and vibrant.  Many Children’s Orchard franchisees, as well as Bond, are former customers who loved the concept.  “The key to our success is that it’s a fun business,” Bond said.  “It allows owners to be a part of the community and do something to help kids and their parents feel good.  It’s a wonderful feeling when a parent picks out an outfit that their child feels great in, and then see how thrilled they are to be able to afford even more outfits.”

Children’s Orchard locates in high-traffic areas in middle-income towns with a minimum of 10,000 children up to 7 years old.  The initial investment ranges from $70,000 to $155,000, which is a lower investment than most other retail concepts; the build out or space requirements are complex, and inventory costs are low.

Children’s Orchard prides itself on high-quality standards and friendly customer service. Franchisees follow strict guidelines when purchasing products, making sure that all clothing is the current style and in great condition and that all toys and other products work, are safe and are in good shape. For safety’s sake, Children’s Orchard won’t buy or sell car seats, items that have been recalled or used stuffed animals. In addition to resale items, stores also offer a line of new products carrying the Children’s Orchard brand name, including socks, tights, underwear and other items.

 “If money is tight and you want to make sure your kids are dressed fashionably, or if you just enjoy the thrill of finding great deals, Children’s Orchard is the place to go,” Bond said.    

About Children’s Orchard
Founded in 1980, Children’s Orchard is the nation’s first franchise of gently used and new name-brand kids stuff.  With nearly 100 franchise locations in 23 states, each Children’s Orchard location buys and sells quality used and new children’s brand name clothing, toys and accessories in an upscale retail environment.  Children’s Orchard stores are designed to emphasize quality, value, comfort and commitment to the local community.