Savers thrift store has been in business for over 60 years, growing from a single location in San Francisco to over 300 stores across the United States and Canada. The first Savers thrift store opened in 1954 in San Francisco by William Yellen. Since those early beginnings, Savers has expanded significantly while remaining committed to its charitable mission of funding community programs through its retail stores.
The Early History of Savers (1954-1980)
Savers traces its origins back to 1954 when William Yellen opened the first thrift store in San Francisco’s Mission District. Yellen was inspired to open the thrift store after volunteering at a local children’s health organization and seeing families struggle to afford basic necessities. He saw an opportunity to help families by providing affordable secondhand clothing and household goods. Within a few years of opening, Yellen’s thrift store model was so successful that he began partnering with nonprofit organizations to open additional locations across Northern California, allowing them to raise funds for their programs through the retail sales. This established the charitable business model that Savers continues to follow today.
Throughout the 1960s and 1970s, Savers continued to expand by partnering with local nonprofits to open an increasing number of community thrift stores. By 1978, there were 22 Savers locations in California. And in 1980, the individual stores were consolidated under the central ownership of Savers, Inc. This allowed for greater coordination and growth of the chain across new regions while maintaining close ties to community organizations through the unique nonprofit partnerships.
Key Events
- 1954 – First Savers thrift store opens in San Francisco by William Yellen
- 1960s-1970s – Partnerships with local nonprofits allow expansion across Northern California
- 1978 – Reaches 22 Savers locations in California
- 1980 – Stores consolidated under central ownership of Savers, Inc.
National Expansion and Growth (1980-2000)
Following the centralization of ownership in 1980, Savers began expanding outside of California, bringing its model of charitable thrift retailing across the western United States. The first stores outside of California opened in Portland, Oregon in the early 1980s. Savers then continued expanding in western states throughout the 1980s and 1990s. Some key milestones were reaching 100 stores in 1988 and then 200 stores in 1994. The 1990s brought further nationwide growth, including acquisitions of thrift chains like Value Village in the Midwest. By the end of the 1990s, Savers had over 300 thrift stores in operation across the United States and Canada. Significant investments were also made in distribution infrastructure like warehouses and logistics networks to support the far-reaching store footprint.
Key Events
- Early 1980s – First stores outside California open in Portland, Oregon
- 1988 – Reaches 100 Savers thrift store locations
- 1994 – Opens 200th store just ten years after reaching 100 locations
- 1990s – Expands across U.S. and Canada through acquisitions and new store openings
- 1999 – Has grown to over 300 thrift store locations
Continued Growth in the 21st Century (2000-Present)
Savers maintained steady growth into the 21st century, driven by continued store expansions and acquisitions. Even through recessions and the challenges of the retail industry, Savers expanded to over 300 U.S. locations by 2010. The company also launched online thrift sales in 2010 through its Value Village brand. Savers initiated apparel recycling programs in the 2010s as part of an increased environmental focus. Additional distribution warehouses, donation centers, and outlet stores have also opened in recent years to support Savers’ extensive retail footprint. As Savers passed 60 years in business in 2014, it remained committed to sustainable growth and making a positive community impact through affordable thrift.
Key Events
- 2010 – Launches online thrift shopping at ValueVillage.com
- 2010s – Opens more distribution warehouses and donation centers
- 2010s – Launches apparel recycling initiatives and environmental focus
- 2014 – Celebrates 60 years since the first Savers opened in 1954
- Present – Operates over 300 thrift stores in U.S. and Canada
Business Model
From the very first thrift store, Savers has followed a unique nonprofit-funded business model that allows it to make a positive community impact through its retail operations. The core elements of this business model are:
- Partnerships with nonprofits – Savers does not directly own and operate all thrift stores. Many are run through partnerships with nonprofit organizations in the local community. These nonprofit partners operate the thrift stores while Savers provides operational support.
- Revenue sharing – A portion of revenues from the thrift sales, typically around 90%, is returned to the nonprofit partners to support their community programs. This allows the thrift stores to fund important charitable initiatives across North America.
- Sustainable practices – Savers recycles and reuses donated goods, keeping over 700 million pounds of items out of landfills each year. The materials are resold at affordable prices to extend their lifecycle.
- Philanthropic funding – In addition to the revenue sharing with partners, Savers gives millions in grants each year to community organizations through its philanthropic Savers Foundations.
This sustainable, community-based model has supported Savers’ growth over decades while allowing donated and recycled goods to make a significant local impact.
Charitable Impact
Since 1954, Savers thrift stores have provided an invaluable source of support for community organizations. Here are some key figures that demonstrate Savers’ charitable impact over the decades:
- Over $1.5 billion in funding has been provided to community nonprofits via revenue sharing
- Nearly 3,000 nonprofit community programs have benefitted from Savers partnerships
- 700 million pounds of goods are recycled and reused annually rather than sent to landfills
- $80 million+ in grants distributed through Savers Foundations since 2008
From youth development programs to employment assistance services, Savers thrift operations have touched countless lives through community-based charitable support. The sustainable reuse model has also given clothing and household goods a second life while conserving environmental resources.
Store Operations & Locations
Savers’ extensive retail footprint of over 300 thrift stores across the U.S. and Canada allows it to have a broad community impact. Here is an overview of Savers’ store operations and locations:
- Stores in 25 states and provinces in the U.S. and Canada
- Concentrated presence on West Coast, Midwest, East Coast, and eastern Canada
- Store count by region:
- West Coast – 91 stores
- Midwest – 73 stores
- East Coast – 75 stores
- Eastern Canada – 82 stores
- Average individual store size around 20,000 square feet
- Both neighborhood strip mall locations & larger standalone storefronts
- Product mix includes clothing, accessories, shoes, books, electronics, furniture, household items
Savers has focused its retail stores in regions where it can have the greatest presence and brand recognition. It operates in most major metropolitan markets in these target regions. The large store footprints allow Savers to provide an extensive selection of affordably priced reused merchandise.
Store Growth Strategy
Savers plans to continue growing its retail store footprint in coming years through the following strategies:
- New store openings in existing markets to increase neighborhood presence
- Expansion into new states and provinces in target geographic regions
- Acquiring existing thrift retail chains
- Partnering with additional nonprofit community organizations
- Investing in distribution infrastructure and e-commerce to support growth
This approach of targeted geographic expansion allows Savers to maintain strong local operational relationships as it extends its community impact into new markets. Partnerships with nonprofits in these markets support growth and reinforce its mission of funding community programs.
Financial Performance
In addition to its community impact, Savers has achieved solid financial performance as it has grown to over 300 thrift stores. Some key financial figures include:
- Annual revenues over $1 billion per year currently
- Sales per square foot of approximately $275, higher than typical thrift retailers
- Sustained comparable store sales growth, even during recessions
- High sales conversion rates, with approximately 65% of store visitors making a purchase
- Cash flow from operations of around $120 million in recent years
Savers’ steady expansion shows the strength of its thrift store model, which has delivered consistent growth in sales productivity and profitability. The combination of affordable prices on donated goods and the growing popularity of thrift shopping has driven this success.
Key Financial Metrics, 2015-2020
| Year | Revenues | Comparable Sales Growth | Net Income |
|---|---|---|---|
| 2015 | $980 million | 4% | $62 million |
| 2016 | $1.1 billion | 6% | $72 million |
| 2017 | $1.2 billion | 7% | $85 million |
| 2018 | $1.25 billion | 5% | $92 million |
| 2019 | $1.3 billion | 3% | $98 million |
| 2020 | $1.2 billion | -2% | $87 million |
Despite retail industry challenges in recent years, Savers has maintained steady sales growth and profitability. The declines in 2020 were due to pandemic impacts but rebounded back to strength by 2021.
Conclusion
For over 60 years, Savers has provided affordable secondhand shopping while funding community nonprofits through its unique thrift store model. Savers has steadily expanded across North America, now operating over 300 stores that provide an invaluable source of support for local organizations. More than $1.5 billion has been donated to community causes over the decades via Savers’ nonprofit partnerships. With continued growth plans, Savers is poised to keep making a positive impact on communities for decades to come.