Secondhand stores trying a new strategy

Secondhand boutiques are turning to a new source of revenue: new clothing.

Redesigned vintage apparel and brand new clothing are finding their way onto the racks of more resale stores as the competition for quality used clothing grows between brick-and-mortar stores and online retailers like eBay.

''If I don't have what I feel is good and cool, I fill it out with new clothes," said Chris Cassel, president of The Garment District, a secondhand store in Cambridge. New clothing accounts for 15 percent of the store's $2.7 million in annual sales.

The strategy also helps secondhand shops to distinguish themselves from traditional thrift stores such as The Salvation Army and Goodwill and attract more customers -- not just ones who are looking for bargains but cutting-edge fashion too.

Often secondhand shops are able to buy new clothing at discounts -- from boutiques unable to offload extra merchandise and budding designers unable to get their wares into department stores.

That's how Karma, a consignment shop in Boston's North End, gets some of its new clothing which accounts for 30 to 40 percent of their merchandise. Shoppers can peruse never-worn bathing suits for over $150, or try a $10 mint-condition, white top with black cuff links by Ann Taylor. Karma, which has another location in Newport, R.I., integrates vintage, new, and redesigned clothing.

''It's nice to get a new item at a discounted price," said Joy Catuogno, who owns Karma with her twin sister Judy. ''You come in and many people don't know we're consignment."

According to the National Association of Resale & Thrift Shops, there are more than 20,000 resale, consignment, and thrift stores in the United States. Sales at thrift and secondhand stores have been growing at about 5 percent a year, as trends have made used clothing and bargain hunting popular, says the Michigan trade group association.

But demand has made it harder to find quality vintage clothing, say secondhand shop owners. And the popularity of selling used clothing on eBay, the online auction site, has also depleted supply, forcing owners to turn to new clothing.

Some resale shops buy new clothing with flaws through wholesalers or distributors.

For fashion designers, resale shops represent an opportunity to launch their careers when they aren't well-known enough to be picked up by stores such as Barneys New York.

Barbara Schauwezker, the designer of Bobbi Clothes, sells her clothing at the new secondhand shop Honeyspot in Jamaica Plain, as well as in boutiques in California, Brooklyn, and Tokyo.

Schauwezker said that when she began to pursue a career as a designer three years ago she didn't have a lot of money but had tons of used clothing that she redesigned for resale. Now that her business has grown, Schauwezker continues to redesign vintage clothing but also makes new clothing.

Hilken Mancini and Laura Dembski, owners of Honeyspot, say selling redesigned clothing can cater to a customer who is no longer looking for ''thrift" and is willing to pay a bigger price for it. ''People are sick of buying the same thing, something you can get at Marshalls," Mancini said.

Shop owners say they can often charge 50 percent more for selling a piece of redesigned clothing. For example, an old chocolate-colored, floral print blouse at Honeyspot that could have sold for $10 can be priced at $25, after ruffles were added to the sleeves and the collar.

Secondhand shop customers such as Lara Levine, a 25-year-old Harvard University graduate student, can't help but notice the redesigned and new clothing.

Levine, who was looking for a costume while shopping in the Garment District, found herself thumbing through the redesigned clothing rack.

She said the uniqueness of the display and merchandise would draw bargain shoppers in, despite a higher price tag.

''People will be attracted that someone made it," Levine said. ''It's one of a kind."

After all, what is one person's garbage is another's treasure.