In the 1970s, thrift shopping was far from the favored Gen Z weekend activity that it is today. Back then, secondhand clothing carried a stigma as a lower-class necessity, said Kerstin Block, the president and co-owner of Buffalo Exchange.
"Resale was not popular then," she said. "We have worked to change that perception over the years."
And they did: Her company grew from one family-run store in 1974 to a chain of 41 family-owned and -operated stores across the US. In 2022, Buffalo Exchange's revenue hit $103 million, which Insider verified with documentation. A spokesperson declined to share current figures as the company at the time was still recovering from closing its stores for three months during the pandemic.
Decades of youth culture have made the secondhand market what it is today — an appreciation of vintage clothing and a more environmentally conscious way of shopping. Searches for "second-hand shop" on Google have spiked.
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The industry is expected to double in size, reaching $350 billion by 2027, and Buffalo Exchange is at the forefront of resale's emerging appeal. The founders achieved lasting success by drawing on their strengths and popularizing a unique business model.
"The resale industry as a whole has just gotten bigger, so there's room for more people in it, which helps everybody inside the industry," said Kerstin's daughter, Rebecca Block, who grew up working in the store from age 9 and is now the company's vice president.
The mother-daughter-duo detailed three keys to the brand's success.
A version of this story appeared on August 31, 2021.
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Popularizing the 'buy, sell, trade' model
Kerstin and her late husband, Spencer, opened their first store in Tucson, Arizona, in 1974. It wasn't truly a thrift store because it didn't accept donations, but it wasn't a consignment store either. The couple had a business model called "buy, sell, trade," which paid customers cash or store credit for the finer items in their closets.
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While they didn't invent the "buy, sell, trade" model, it wasn't as common then, said Jennifer Le Zotte, an assistant history professor at the University of North Carolina and the author of "From Goodwill to Grunge: A History of Secondhand Styles and Alternative Economies."
It also helped that fashion cycles have accelerated since the early '90s. Garment manufacturing that used to take months now take weeks, so people turned to resale as a way to freshen up their closets instead of repeating outfits. "People are expected to have a bigger wardrobe and to recycle outfits less in their social life," Le Zotte said.
Today the "buy, sell, trade" model is widely used in resale, from local stores such as Beacon's Closet in New York to national chains such as Plato's Closet.
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The right people doing the right things
Spencer wrote a book about the family's business that was published after his death. Among the many lessons he described was that Buffalo Exchange's success was not merely luck or good timing, but based on two people drawing on their strengths.
"There are so many people who start businesses without the right combination of love and skills and then blame their failures on luck," he wrote. "Luck is not a critical element of success in small business."
Kerstin was the artistic one who handled the fashion and marketing. As a former decorator for a furniture retailer, she had an eye for what people wanted. Meanwhile, Spencer took care of the business operations, including bookkeeping and advertising. They stuck to what they were good at and didn't attempt to fill the other's role.
An innate ability to know what sells
In the same way Kerstin and Spencer built their business through their unique skills, the company looks for employees with a special knowledge of fashion. "Usually people have a niche and an interest," Kerstin said. "They might be sneakerheads. They might have a real love of vintage."
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When customers walk into Buffalo Exchange with a tote bag full of clothing, store associates known as buyers are the ones who sort every piece to find the gems. They check for brand names, garment condition, and overall appeal to stock the store with items from brands like Levi's, Free People, and Nike. You can find gently used luxury goods like leather jackets and designer bags for a fraction of their original prices.
"We call it an art, not a science, because it really does take this innate interest in it," Rebecca said.
And the stores are known for this careful method of curating only the clothing and accessories that shoppers will find cute, unique, or trendy. You won't see piles or bins of indistinguishable clothing or racks of tangled dresses.
"It really is the fun part of the job — being in the store and helping customers," Rebecca said. She added that employees "get a lot out of helping the customers, and the customers have a really great time."
