Kid to Kid: a 30-year old children’s clothing resale franchise | Knowledge Hub | Circle Economy Foundation
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Business case
Kid to Kid: a 30-year old children’s clothing resale franchise
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Kid to Kid is a resale franchise that buys and resells used children and maternity items (clothes, strollers, books, toys, etc.) at affordable prices. Founded 30 years ago, this business case has thrived from positively boosting local economies to realizing a scalable franchise program.

Problem

Families spend large sums of money on clothing each year (£1,100 in the UK, Statista; $1,800 in the US, BLS), a considerable amount of which on childrenswear, and most of it is only worn for 2-3 months (Circos). This leads to an estimated 183 million tonnes of outgrown's children's clothing going to waste (Hubbub). Having such a short span of use per consumer, the distribution system for children's clothing is severely out of tune with the usage requirements of this product.

Solution

Kid to Kid is a brick-and-mortar resale franchise that buys and resells gently used children and maternity items (clothes, strollers, books, toys, etc.) at affordable prices. For incoming goods, clients are offered between 20-50% of the retail price and payout options are cash and store credit. Items that don't pass the quality requirements are donated by Kid to Kid to local charities.

As there is always demand for children’s clothing (particularly for a cheaper alternative to first-hand retail), the business model has shown to be recession-resistant. Founded in 1992 in the United States, it has expanded to Canada, Spain, and Portugal and now has over 100 stores. 

Kid to Kid grew through a franchise ownership program: a documented business and investment plan, a training program, and ongoing support. Through this program, they have built a scalable business model backed by a successful franchise history. 

Kid to Kid has a sister concept for teens and young adults called Uptown Cheepsake. In partnership with buildOn, they have funded the building of 15 schools in 7 countries affected by poverty. 

Outcome

By circulating goods within a community, Kid to Kid keeps the transport of these items local and maximises their potential usage (thus indirectly diverting wearable items from landfill). Chiefly, it pumps money back into its community.

Additional information

The average Kid to Kid store puts $250000 a year back into the local economy. 

In 2020 Kid to Kid:

– Kept 9 million items from landfills by resale

– Donated millions of clothing items to approximately 50 charities nationwide

– Paid out $13.5 million to local communities


Photo: The Nix Company ©Unsplash

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