Secondhand-goods seller Arc defies economy, opens new store

Look, Mom, I found an expanding retailer that's opening a new store!

That's not easy to do in an economy where hard-pressed consumers have pocketed their credit cards, leaving merchants struggling to achieve flat year-over-year sales.

But Arc's Value Village Stores, the retailer of secondhand goods that's operated by nonprofit Arc Greater Twin Cities, is opening its fourth and largest store Saturday in refurbished space at the Hillcrest Shopping Center on White Bear Avenue on the east side of St. Paul.

And it's getting a nice assist from venerable high-end clothier Hubert White, which is asking customers to bring in a million bucks' worth of used clothes (at original retail price) to stock the Value Village stores. Welsh Companies, the management and development company, spearheaded a refurbishment of the 25,000-square-foot building, a project that cost several hundred thousand dollars. Arc is the new anchor tenant in the upticking, 1950s-vintage center owned by Private Bank Minnesota, which also made a six-figure contribution toward the overhaul, including a new HVAC system, energy-efficient windows and a bright interior face-lift.

During times like these, secondhand peddlers such as Arc's Value Village, Goodwill Easter Seals and the Salvation Army generally do better than mainstream retailers such as Target and Wal-Mart, which have struggled, and far better than specialty-apparel retailers. "We hope to be part of the ongoing revitalization of Hillcrest and the east side of St. Paul," said Arc Greater Twin Cities CEO Kim Keprios, who added that she's looking for a fifth site. "This gets us into the east metro area with our first store and our fourth since we opened a Richfield store in 1982 in what was then a bold move. We bring nice-quality clothing, some furniture, housewares, dishes, toys, books."

The store will mean 40 full- and part-time jobs.

Profit from retail operations generates about 40 percent of revenue at ARC Greater Twin Cities, which serves those with mental and developmental disabilities and their families.

Arc also operates stores in Brooklyn Center and New Hope.

Laurel Hansen, retail business director at Arc Greater Twin Cities, said she expects storewide sales to rise by 6 percent this year, to $6.5 million.

The operation, thanks partly to donated goods and volunteers, boasts an impressive 25 percent profit margin and sales per square foot of $200.

Brad Sherman, a 33-year veteran and vice president of Hubert White, said the Nicollet Mall store would accept customer donations of White-purchased goods through next week. White, which sponsored an in-store reception for Arc Thursday evening, is offering 20 percent discounts to client who bring in old duds.

"We constantly donate to ARC and thought the time was right, for a lot of reasons, to get our customers involved in this giveback in a big way," Sherman said. "It will be truckloads of clothing, and they will distribute it effectively.''

Sherman said his business has been challenging since October 2008. "But this event has rallied us and we have a lot of generous clients. Retailers need to give customers a reason to buy these days. It has to be priced right. ... Go through the closets, bring it in. We're getting good traction with this. And hopefully we're doing something good."

More information: www. arcgreatertwincities.org or www.arcsvaluevillage.org.

Kudos to an Arc volunteer

Cindy L. Johnson, a sales associate with Dona Christensen Realty in Woodbury, is one of five winners of community-service awards chosen by the National Association of Realtors for 20-plus years in service to the Arc of Minnesota.

The mother of a 26-year-old daughter with disabilities, Johnson was lauded for her volunteer lobbying and other efforts to bring the developmentally disabled out of institutions and into the mainstream of life.

Neal St. Anthony • 612-673-7144 • nstanthony@startribune.com