Motley Fool Money Why Resale is Forever
Apr 27, 2024
Brett Heffes, CEO of Winmark, shares insights from leading a successful franchise that includes Plato's Closet and Play It Again Sports. He discusses the impressive growth of Play It Again Sports, driven by innovative marketing and sustainability efforts. Heffes delves into the strategic allocation of capital within the resale business, emphasizing long-term value for stakeholders. The conversation also highlights Winmark's strong financial performance and its commitment to creating a lasting impact in local communities.
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Style Encore's Surprising Success and Challenges
- Winmark's Style Encore has higher average unit volumes (AUVs) in year 10 than Plato's Closet or Once Upon a Child.
- Despite this financial success, Style Encore has struggled with store growth, partly due to self-inflicted issues like focusing too much on high-end handbags and excluding men's items.
Style Encore's Missteps
- Winmark made mistakes with Style Encore by initially awarding multiple agreements, deviating from their successful one-store-at-a-time approach.
- They also initially focused too much on higher-end handbags and no men's items, neglecting a key component of their other brands.
Winmark's Growth Goal
- Brett Heffes wants Winmark to have five brands that can each add 10 stores per year.
- Currently, only three brands meet this goal. He aims for this for all despite the challenges and has no specific timeline.