The Viability of Establishing Thrift

Store along Sangandaan, Caloocan

A research

Presented to the Faculty of

Operations Management Program

STI College Caloocan

In Partial Fulfilment

of the Requirements for the Degree

Bachelor of Science in Administration

Major in Operations Management

Marcie Justina O. Macasinag

Raphael Louis H. Ocampo

John Daniel Salazar

John Mark E. Saniano

 CHAPTER 1

INTRODUCTION OF THE STUDY

This chapter will discuss the background of "The Viability of Establishing Thrift Store

along Sangandaan, Caloocan". The thrift store is an alternative for fashion it is also second-hand

clothes and accessories by which you can use.

1.1 Background of the study

Back within the day, clothing was not as expendable since it was expensive. Things

started to change with the beginning of the Industrial Revolution. Clothing started to be delivered

in masses and at affordable costs. Individuals would purchase unused dresses more frequently

and hurled their ancient clothing.

According to the dictionary, a thrift store is a store that sells used things such as clothes, books,

and furniture, typically in order to raise money for a charity.

The word thrift, which was coined in the early 1900s, is characterized as “the quality of using

cash and others, carefully and not wastefully.” With that being said, a thrift store may be a retail

store that offers secondhand products at moo prices—enabling consumers to thrift. According to

Planetoid, 77 percent of millennials would or maybe purchase clothes that would offer assistance

to the environment. Aside from DIYs, buying used is the closest application to the virtues of

reuse and reusing design. (By InqPOP! Creator Community June 19th, 2019)

Accomplishing a whole new market and changing the game of the design industry as we talk, a

thrift shop has since developed. And from being fair a goal of clothing need for the working
course, thrift shops have turned into the shopping goal for stylish vintage wear and authentic

pieces that used to be widely unknown. (By InqPOP! Creator Community June 19th, 2019)

Things started to change when Christian ministries began to gather items to offer to try to

support programs. It moreover helped that Americans during this time began to give more to

charities. Throughout the years, thrift stores started to pop up, hire disabled individuals and even

offer service operations.

In today's age, thrifting has not changed and continues to rise in popularity. People still continue

to give their unused products to local thrift stores to help nonprofit organizations, communities

and even help save the planet. (Powered by Omaha Media Group)

In today's age, thrifting has not changed and continues to rise in popularity. People still continue

to give their unused products to local thrift stores to help nonprofit organizations, communities

and even help save the planet.

1.2 Research Objectives

The researchers of this study wish to provide more strategies on how to make this

business viable in the marketplace. The common problem in this business is the duration of

surviving the business and the profit that will earn from it.

 To identify how to make it more viable in the marketplace.

 Strengthen the strategy to maintain customer satisfaction in the long run.

 Assess the target market perceptions of stores and competitors.

 Determine the target market.

1.3 Statement of the Problem

This section stated here the questions that researchers wish to answer in conducting this

research study.

1. What impact have thrift stores had on the affordability and availability of our product?

2. What are the most effective strategies for sales in thrift stores?

3. What will be the effect of selling thrift clothes on the trend of Branded Overruns clothes?

4. What are the effect of online selling on our profit/sales?

5. What are the difference in sales before pandemic and during pandemic in thrift store?

1.4 Significance of the study

The significance of the study of the viability of establishing to a specific business which

is thrift store along Sangadaan, Caloocan.

To the start-up business/women - The researchers will give simplification to the

curiosity of the start-up businessmen/women. The researches will also provide viable

business opportunities and they can explore new methods of study that can change their

marketing knowledge. By understanding the needs of the start-up businesses and the

benefits of the quality of this business, the researchers are assured of its competitive

advantage. This study will provide quantitative information and recommendations on

how to evaluate the performance to make this business successful. Importantly, this

research will educate businessmen/women in deciding to enter this business.

 To the existing businesses – This study will also be helpful to the retail industry and

business practitioners in training and informing them in the area of this business. The

researchers will provide more strategies to make their business efficient and to gain

profit.

To the future researchers - It will also serve as a future reference for the researchers on

the subject of business management. This will help them to comply with their research

paper in this type of research.

1.5 Scope and Limitations of the study

In this section, the scope and limitation of The Viability of Establishing Thrift Store

along Sangandaan, Caloocan is discussed to achieve the specified objectives.

Scope

This study focuses on the viability of establishing a thrift store along Sangandaan, Caloocan

City. The study covers the effects, solutions, and strategies for thrift stores. This study aims to

identify the market viability, conduct a SWOT analysis and determine the target audience. The

data collection will be conducted at the thrift store along Sangandaan, Caloocan who will

represent the population.

Limitations

This study will not cover other problems that are not considered as one of the viabilities of

establishing a thrift store. The other shirt store which does not fall as part of the thrift store is not

within the scope of this research. The study would be done through the utilization of
questionnaires to the thrift stores as a survey and reference. By their strategy, the researchers will

be able to know the viability of establishing a thrift store along Sangandaan Caloocan.

CHAPTER 2

Review of Related Literature and Studies

This literature, studies, or project cited tackle the different concepts, ideas, applications, or

systems and different progress related to the current research of the researchers which is The

Viability of the Thrift Store. The following words are the keywords that led by the researchers on

these papers: Second-hand, sales, non-profit.

2.1 Review of Related Literature

Ukay, ukay! Secondhand clothing sales are booming – and may help solve sustainability

woes in the fashion industry, the secondhand clothing advertise is composed of two major

categories, thrift stores, and resale platforms. But it’s the latter that has generally fueled the

recent boom. Secondhand clothing has long been seen as worn out and tainted, basically looked

for by bargain or treasure hunters. In any case, this perception has changed, and now many

customers consider secondhand clothing to be of indistinguishable or even superior quality to

unworn clothing. A trend of “fashion flipping” – or buying secondhand clothes and reselling

them – has also emerged, particularly among young consumers. (By Hyejune Park and Cosette

Marie Joyner Armstrong - November 20, 2020).

Rise of Thrifting: Solution to Fast Fashion or Stealing from the Poor? Earlier to the

industrialization of the design industry, the lower classes depended on homespun fabrics which

were made through hand twisting, a time-consuming process. These things were repaired, reused,
resized, and changed into modern pieces until they were beyond wear—and even at that point,

those scraps were used to stuff furniture. That quality was continuously valued over quantity. But

within the past decade, thrifting has taken on a completely new life, particularly among people of

Generation Z, born between 1995 and 2010. Moreover, many people exploit their online

popularity to make businesses out of reselling thrift items at marked-up costs. (Nanditha Nair –

November 19th, 2019)

Thrift Store Donors, Thrift Stores receive donations of gently-used second-hand goods

from individuals, New goods from first-run stores that may be liquidating merchandise, and

planned Giving from individuals (Sargaent and Hudson, 2011). These charitable donations Are

influenced by personal characteristics and motivations of Donors, characteristics of the charitable

organization, and situational variables. Bennett (2003) and Royer (1989) found that charitable

giving increased with Age with 60% of charitable giving coming from the 60 to 76 age group.

Similarly, Hibbert et al. (2005) found that older respondents were significantly more likely to

Respond to a charitable request for merchandise. Further, Roberts (1996) found that Recycling

behavior was positively related to age. Research regarding gender indicates that women give

more frequently

(Schlegelmilch et al., 1997), while men tend to make larger individual donations (Braus, 1994).

Men were found to respond more favorably to raffles and countertop collections at retail outlets

(Schlegelmilch et al., 1997). Vining and Ebreo (1990) found that recycling behavior increased

with education. Research on donor motivation (i.e., what motivates a person to donate to charity)

can be classified in terms of self-interest (i.e., concern for self) and altruism (i.e., concern for

others). Altruistic motivations include sympathy, empathy, believing in a cause, environmental

consciousness, and a moral sense of obligation (i.e., the need to give back) (Meyers, 1990;
Hibbert et al., 2005). Self-interest motivations include tax incentives, recognition, convenience,

self-esteem, and pride (Riggs, 1986; Bennett, 2003; Hibbert et al., 2005). Research by Mitchell et

al., (2009) found that self-interest (seasonal cleaning, the need to free up space) trumped altruism

(i.e., desire to help my fellow man) when donating to Thrift Stores. Prior research shows that

perceived characteristics of the organization influence charitable giving. Specifically, perceived

integrity, compassion and caring, and effectiveness and efficiency affect charitable giving

(Venable et al., 2005; Bennett 2003; Nonprofit World 1997). Additionally, a study by Bennett

(2003) found that the overall favorability of a person’s perception of a charity was significantly

related to giving. Individuals are more likely to give when they believe a charitable

organization's values are consistent with their own (Mitchell, et al., 2009). Situational variables

that have been shown to affect charitable giving include the economy, type and number of

competitors, and mode of request. In harsh economic times, individuals are more likely to keep

merchandise longer and sell rather than donate second-hand goods, thus decreasing the number

of donated goods available to Thrift Stores (Glover, 1992). Charitable organizations, for-profit

second-hand stores, websites like eBay and Craigslist, and antique shops provide increased

competition for still valuable second-hand merchandise. Similarly, popular television shows such

as Pawn Stars, Storage Wars, and American Pickers have increased awareness of the value of

second-hand merchandise. Lastly, Sargeant and McKenzie (1998) found that donors who

responded to a direct mail request tend to support an organization for the longest period while

direct response television donors tend to give larger than average donations. Schlegelmilch et al.,

(1997) found that “frequency of request” significantly influences donations. (Robert

Montgomery - 2014)
 Online 'ukay-ukay' on the go: Where to check great thrift finds and deals? With

everybody depending on advanced media due to pandemic crisis, no wonder everything about

life as we know it has found its fast-paced track—all transactions have all of a sudden turned

online--a secure haven to all entrepreneurs and trade enthusiasts out there who are struggling

because of the quarantine protocols. In just a tap away, you'll be able to sell, buy, and earn—

business as normal. We can actually buy everything online with our favorite e-commerce apps.

But aside from these, little businesses are presently steadily locked in the advanced world—even

our best-loved Ukay-ukay or thrift shops were ready to score extraordinary things at reasonable

costs is making waves online. (Jhoemz Vercide - July 4, 2020)

The Thrift Store Shopper, Thrift Store shopping has been shown to be influenced by

personal characteristics And motivations of the consumer, characteristics of the Thrift Store, and

situational Variables. Mitchell and Montgomery (2010) found that saving money was the top

Motivation (58% of respondents) for shopping at Thrift Stores followed by looking For an item

for a special event (48%) and looking for a unique item (31%). Bardhi And Arnould (2005)

found that consumers experienced both economic and hedonic Benefits from Thrift Store

shopping. Similarly, Alexander et al., (2008) identified Three charity shop consumer segments:

(1) Moderate Means; (2) Comfortably Off;

And (3) Urban Prosperity. Moderate Means shop at charity shops for predominantly Economic

reasons whereas Comfortably Off and Urban Prosperity are motivated by Hedonic benefits such

as fun, leisure, social interaction, and realization of consumer Fantasy. The old perception of

Thrift Stores is that they are unorganized, dark, smelly, And dirty (Bardhi 2003). However, the

image of Thrift Stores has undergone a Make-over in recent years resulting from the payment of

management and staff, Better locations (e.g., high streets in the UK), standardized merchandising
displays (e.g., mannequins), higher quality store fixtures, and professional promotional Strategies

(Croft, 2003). These efforts are paying off as a poll by Harris Interactive And Ebay found that

70% of adults said buying used merchandise is more socially Acceptable than five or ten years

ago (Petrecca, 2008).

As an example of this Thrift Store category upgrading, Goodwill Industries is Trying to lose its

low-end image by creating a more up-scale shopping experience With “boutique stores” that

carry second-hand designer labels and department store Brands. The push is designed to improve

their image, reputation, and brand by Promoting Goodwill as a cool place to shop where you can

find chic and unique items at affordable prices (Jyang, 2009).

Thanks to the Great Recession the current economy is ripe for Thrift Store Sales. Thrift Stores

offer individuals and households who are struggling financially The opportunity to save money

on clothing and household items. The National Association of Resale and Thrift Shops reported

that 2008 September-October sales Were up 35% compared to the prior year (Petrecca 2008).

Similarly, Hein and Miller (2008) found that Thrift Shops saw an 85% increase in the number of

customers From January to August 2008. Even teens are turning to Thrift Stores as summer Jobs

dry up and their parents struggle in tough economic times leading to a new Term:

“Recessionista” which is used to describe a modern, stylish sort of gal who is trying to survive

the economy by hunting bargains (Business Week 2008). Suddenly, it has become cool to be

frugal and environmentally conscious . . . two Things Thrift Stores offer. (Robert Montgomery -

2014)

2.2 Review of Related Studies

 Second-hand clothing shopping among college students: The role of Psychographic

characteristics. This study, conducted by Nan Yan (2015), found many difficulties had to be

faced when selling second-hand clothes. This study examined multiple psychographic variables

and provided insights into the customers’ second-hand shopping behavior. Furthermore, this

study aims to examine whether and how second-hand clothing shoppers differ from non-

shoppers on psychographic variables, including their sensitivity and perception when it comes to

vintage clothing. This study looked at the viability of opening a thrift store, determining the

target customer, customer satisfaction, and determining the most effective strategy for success

when opening thrift stores. Ruoh-Nan Yan (2015, April 16).

Thrift shops becoming favorable fashion after years of disinterest,

Zhao (2017) conducted a study about the thrift store's becoming a favorable fashion destination

after years of disinterest. Many people feared the second-hand clothes they thought were dirty

and not safe to use. Many shoppers also find some interesting things in thrift stores because of

their affordable prices, and some of the items are as beautiful as new. The aim of this conducted

study was to find the perfect solution to sell second-hand clothes and make them unique. This

study related to the viability of establishing a thrift store to know the possible reasons why some

people have an interest in second-hand items and to determine the customer satisfaction strategy

to make the thrift store succeed. (Shannon Zhao - 2017).

Thrift Stores Funding Food Pantries: A win-win Strategy for Nonprofits Serving the

poor? In recent years, NGOs have begun to open thrift stores with the intention of reinvesting

income from store sales in other poor-serving projects. Martha's Table, a Washington, DC-based

organization, has implemented such a plan. It runs Martha's Outfitters, a secondhand store that
offers low-cost apparel to its customers. The proceeds from the thrift store are used to support

other projects, such as Pantry Day, which delivers free food bags to very low-income people

once a month. This article explores how to assess the total benefits of the two programs for low-

income beneficiaries based on client surveys and other data for both programs after giving a

profile of the beneficiaries of the thrift shop and food pantry programs. According to the report,

these benefits are significant, suggesting that leveraging thrift stores to support food pantries

might be a win-win strategy for NGOs serving low-income people. (Divya and Wodon,

Naina and Wodon, Quentin  - 2013).

A System Dynamic Model of Supply and Demand in Thrift Stores, The dynamics driving

supply and demand in thrift stores were investigated in this study. Donations are given to thrift

stores in order for them to resell and achieve their social and environmental aims (Mitchell &

Montgomery, 2010; BKN, n.d.a). Unlike ordinary businesses, which can control their supply of

products, thrift stores rely on (irregular) donations and must adapt to changing conditions

(Mitchell et al, 2009). Thrift stores operate in a constantly changing environment. A conceptual

model based on scientific literature was created to get a further understanding of how thrift stores

support the reuse of things. This model comprises a depiction of the supply and demand

dynamics, and as a result, it links previously explored parts of supply and demand in an overall

model. A subset of six thrift stores was studied to see if this was reflective of how thrift stores

function shops were chosen. Six workers were interrogated, and documents were examined. The

semi-structured interviews were examined for possible inconsistencies between the conceptual

model and the respondents' experiences. The conceptual model was reviewed based on these

interviews. ( Reeuwijk, Hedewych – 2021)

 How to Generate Sales for a Thrift Store?, Many thrift stores are taking an upmarket

approach to offer stylish vintage things and antiques, as well as new close-out stuff, which was

traditionally thought of as a place to acquire low-end used merchandise. Thrift stores can

succeed by emulating ordinary merchants' marketing strategies, such as sponsoring promotional

events and promoting deals. Run sales, Merchandise creativity, Price it right, Go online,

Advertise, these are the tactics that should be generated.

(Lisa McQuerrey- 2021).

2.3 Synthesis

The Thrift Store is a trend business nowadays that usually seeks opportunities to gain profit so

that the researchers think that it is worthy for further study or enhancement. The information that

the researcher gathered made the project feasible and able to provide a solution to the problem

that is currently solving. The researchers also observed and logically criticized the views from

different literature and studies which helps this project to explore more about the business that

we have today, where it can be applied to the ongoing marketplace and makes the students

practice their field of expertise.

Since the study is much later than those, certain concepts and elements will be extremely

comparable with the collection of these studies and literature. With all of that stated, rest assured

that this study is not spare by any means of any study or literature included in this chapter.

All of the studies and literature in this chapter that deal with the topics have distinct

methodologies for their projects and ideas. This project's researcher will relate certain parts of
those as highly successful techniques. The researchers also want to see the principles used in a

new way and with a different approach.

CHAPTER 3

Theoretical Framework

3.1 Theoretical Framework

Profitability of Establishing Thrift Store:

This Chapter presented the collected theory that related to the research study provided by

researchers.

According to Frank H. Knight that the Thrift stores are experiencing risks, and uncertainly in

profits. Establishing Thrift stores along Sangandaan Caloocan City may encounter the risk and

uncertain income by reason of competitors and Customers are demanding on the quality of the

items. Thrift stores are uncertainly arising the profit, the future demand of customers will

increase. If there are changes in innovations of the product, and it’s predictable therefore it gives

rise to profit. Thrift Stores must have to make estimates of future conditions regard to the

demand for production or the other factors which affect the costs and price. In other points of

view, the owner of the thrift store should have a plan on how to fulfill the demand of customers

in secondhand items to arise the profit and as surely the items will be sold. The reason why some
thrift stores are facing low income is because of changes in tastes and fashions of the people,

movements of prices because of inflation and depression.

3.2 Conceptual Framework

This chapter presented the visual representation of an expected relationship between variables.

This component helps us to identify and clarify what we want to know and prove in this study. It

also shows how it connects or the relativity of these components on our variable which is the

profitability of establishing a thrift store. It also shows the relationship of strategies on our

phenomena which is the viability of thrift stores.

The Viability of Establishing Thrift

Store along Sangandaan, Caloocan

CUSTOMER SATISFACTION

MARKETING STRATEGIES
GIES
3.3 Research Hypotheses

Ho: there is a significant increase of demand in second hand items in online selling during

pandemic.

Ha: there is no significant increase of demand in second hand items in online selling during

pandemic.
 CHAPTER 4

Research Methodology

This chapter presents the research methodology, research design, research site, research

instrument used, data-gathering procedure and Statistical Treatment of the Data that will help the

researchers in conducting the Study.

4.1 Research Design

The researchers used Quantitative Research. The objective of using this research design is to

determine the relationship of our research variables, and to investigate the satisfaction of the

customer in The viability of establishing thrift store along Sangandaan Caloocan City.

4.2 Research Subjects and Sites

The respondents of this study are the residents both relatives, classmates, and Friends along

Sangandaan, Caloocan City with the total of 60 repondents. The classification of respondents is

they lived along Sangandaan and are also customers in thrift stores in Sangandaan. Which the

researchers believe that they can help them to prove profitability and customer satisfaction in

thrift stores along Sangandaan, Caloocan City.

The respondents of this research were selected using the convenience of a sampling method. The

respondents are limited to residents of Sangandaan, Caloocan City.

4.3 Research Instrument

The researcher composed a research questionnaire consisting of 15 items. The researcher

concentrated on gathering information about the experiences or insights of customers who had
previously purchased from a thrift store or from people who had never experienced purchasing

from the said store. Aside from gaining insights in a thrift store, respondents who had prior

experience with thrift store purchases were asked how many times or days they had purchased at

a store. As we ask for their insights, or relevant questions and their answers, we have to analyze

the key factors in the profitability of the thrift store.

Survey Consent

"The Viability of Establishing Thrift Store along Sangandaan, Caloocan"

Good Day! You are invited to participate in a web-based online survey about "The Viability of
Establishing Thrift Store along Sangandaan, Caloocan". A thrift store is an alternative for fashion
it is also second-hand clothes and accessories by which you can use. This is a research project
being conducted by Macasinag, Marcie Justina, Ocampo, Rapahel Louis, Salazar, John Daniel
and Saniano, John Mark, a student at Sti College Caloocan. It should only take you 10 minutes to
complete.

Your participation in this survey is voluntary. You are free to refuse to participate in the study
or quit the survey at any moment. You have the right to refuse to answer any question you don't
want to answer for whatever reason.

CONFIDENTIALITY: Your survey answers will be sent to a link where data will be stored in a
password-protected electronic format. The survey does not gather personally identifiable
information such as your name, email address, or IP address. Therefore, your responses will
remain anonymous. No one will be able to identify you or your responses, and no one will be
able to tell whether you participated in the survey or not.

CONTACT

If you have questions at any time about the study or the procedures, you may contact the
researchers [Macasinag, Marcie Justina, Ocampo, Rapahel Louis, Salazar, John Daniel and
Saniano, John Mark] via phone at [09155469727/09297518208] or via email at
[[email protected]/[email protected]/[email protected]].
Survey Questionnaire

Name (optional): Sex:

Age:

1. How often do you go to a thrift store?

o Daily
o Once a week
o Twice a week
o Three times a week

2. Which Item do you prefer when you buy in Thrift Store?

o Clothes
o Pants
o Shorts
o Bags

3. Rate from 1-5, Rate the Second-Hand Items in Thrift Stores (5 highest)

4. How much are you willing to spend on purchasing in Thrift Store

o 20-49
o 50-99
o 100-149
o 150-199
o 200 up

5. How many hours you're willing to spend buying in a thrift store

 o 0-1hour
o 1-3hours
o 3-5hours
o 5-8hours

6. Do you still prefer to buy second-hand items despite the huge threat of COVID?

o Yes
o No
o Maybe

7. What do you expect from buying second-hand items?

o Good as New
o Washed
o Ironed
o Low Price

8. When do you prefer to buy thrift items?

o When there is a new arrival season

o 20% off on selected items season
o 50% off on selected items season
o 80% off on selected items season

9. For whom do you usually buy second-hand clothes?

o Yourself
o Your partner
o Your children
o Other

10. What makes you buy second-hand clothes?

o Cheap price
 o You find items that you very like
o Condition of clothes
o It corresponds to what you are looking for or what you needed

11. Where do you prefer to buy it?

o Online
o Physical Store

12. Do you follow current fashion trends?

o Yes
o No

13. What factors do you like about secondhand shopping?

O Price

O Unique style

O Recycle

O Others, please specify

14. What turns you off from shopping in a secondhand store?

O Smell

O Organization

O Cleanliness

O Customer service
4.4 Data Gathering

The researcher looks first to the respondents who live nearby Sangandaan Caloocan City by

asking their common friends and classmates using social media. This data gathering has been

done through communicating online without physical interactions. It is hard nowadays to go

outside because of Covid-19. The researchers choose the convenient respondents only to be able

to finish the survey easily. The number of respondents is the number of common friends,

relatives, and classmates who are nearby to the place of the physical store.

After collecting the correct respondents for the study, the researchers decided to begin the survey

through google forms with the consent included and it only took 3-5 minutes to answer.

4.5 Statistical Treatment

 CHAPTER 5

Data Analysis and Findings

This chapter will represent the analysis of data gathered from the survey that the researchers

conducted. This chapter will show the result of what is best to do to make the thrift store

profitable and achieve customer satisfaction. The information acquired will be displayed in

graphs and tables, which will be analyzed for discussion and analysis of the findings.