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The Truth Behind Value Village

Written by Kate Hsu


Thrift stores were accepted soon after the stock market crash of 2008. At the time, the norm was not to brag about how expensive an item was, but the opposite—how cheap it was.

This brings up the fact that Value Village has skyrocketed in popularity and became a “trendy” place. Thrifting shopping sounds like the right thing to do by avoiding consumerism and obviously, some of your money is going to charity. Or is it?


Let’s investigate, starting with their slogan.


A King County judge reprimanded the chain for misleading consumers. The slogan “donate to a non-profit here” demonstrated in the photo was taken by Sally Deneen.


This slogan is misleading to consumers as it creates the impression that buying a couple of shirts will help non-profit organizations.


Value Village is the largest for-profit thrift store in the world that annually generates over 1 billion in revenue and only donates a tiny fraction of that to charity. In 2015, InvestigateWest reported that Value Village had agreements with charities to pay lump sums for the donated material.

The rates are:

  • $.04 per pound for soft goods (clothing, shoes, etc.)

  • $.02 per pound for miscellaneous (housewares, toys, books, etc.)

  • $.02 per pound for furniture (couches and other large items).

In addition to not being paid a fair rate, the charity partners receive less than 5% of sales revenue on goods donated in their name. In general, between 8% and 17% of the firm’s revenue ends up given to the charities. Now, Value Village has come up with a new strategy: asking donors to drop off merchandise directly. Meaning, there is less support on charities subsequently, they are unable to make any profit. As a result, some charities have severed ties with the company since 2009. One charity in Boston, Big Brother Big Sister Foundation, is now receiving three to four times more revenue than being partnered with Value Village as they have opened their own thrift store.


The director of the non-profit Steven Beck says:

If a charity is making 4 to 6 percent, that’s pretty unbalanced. If you’re making a million, and we’re making $40,000, how is that helping charities?


“It may be legal, but it’s not right.”


Beck publicly discusses the dark truth behind Value Village and the profits they make.


For instance, Value Village pays a nickel for a dress bought from a charity, and prices it at $9.99. Barely any of the profit is going to a charity, but rather into the pockets of the CEOs. This links back to Value Village’s slogan “donate to a non-profit here”.


Are consumers really donating to a non-profit when they purchase an item? Yes. Does $.01 count? I think not.


In the end, Value Village receives the clothes for cheap, sells them high and takes most of the profit for themselves, leaving almost nothing for the non-profit organizations.

Let's be aware of what companies stand for and where their profits are going to. Next time you thrift, ask yourself where is your money truly going?



Works Cited

Lyman, Francesca. “Questions Are Raised Over Thrift Store Chain's Charitable Deeds.”

NBCNews.com, NBCUniversal News Group, 28 Oct. 2015,


Lyman, Francesca. “Value Village Rebuked by Judge for Deceiving Consumers.”


“Thrift Store Chic.” Wikipedia, Wikimedia Foundation, 13 June 2019,


 

About the Author

Kate Hsu is a grade 12 student attending Monarch Park Collegiate Institute. In her spare time, she does curling and tennis as well as piano. She has an underlying love for fashion, as she sews clothes in her spare time- Attempting to achieve a minimalistic and pastel aesthetic. A unique hobby she has is talking to people. She believes everyone has something to share and contribute.


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