Savers opened its 19th Australian store in Geelong on August 27, drawing a queue stretching roughly 100 metres, as local charity operators raised concerns that the US-backed for-profit retailer competes directly with non-profit op shops for donated goods and customers.
For-profit thrift chain Savers opens 19th Australian store, drawing scrutiny from local charities
Savers opened its 19th Australian store in Geelong on August 27, drawing a queue stretching roughly 100 metres, as local charity operators raised concerns that the US-backed for-profit retailer competes directly with non-profit op shops for donated goods and customers.
Savers Australia is a subsidiary of Savers Value Village (SVV), a company listed on the New York Stock Exchange with a market value of $2.2 billion and a majority stake held by American private equity firm Ares Management. SVV is described as North America's largest for-profit second-hand retailer, with 185 stores in the United States and 172 in Canada. The company reported earnings of more than $300 million last year, according to Refinitiv data, and carries a gross profit margin of 50 per cent.
Savers' business model in Australia involves partnering with non-profit organisations, which collect donated goods from the public and deliver them to Savers stores in exchange for payment. At the Geelong opening, donation bins bearing Diabetes Victoria's branding were on display. Diabetes Victoria chief executive Glen Noonan, who attended the launch, said the arrangement allows his organisation to raise revenue from second-hand donations without operating shops itself, though he declined to disclose the specific payment terms, describing them as confidential.
Analytics firm IBISWorld noted that larger retailers including Savers have 'consistently outperformed their smaller, non-employing counterparts' in the Australian second-hand retail market, 'primarily owing to their capacity to harness economies of scale.'
In North America, SVV has been deploying an artificial-intelligence-backed pricing tool called ThriftIQ to speed up pricing decisions and improve stock sell-through. UBS retail analyst Michael Lasser, whose bank has done work for Savers, said the technology leads to 'better pricing of products, more productive use of labour, and faster sell-through of the goods.' Savers declined to say whether ThriftIQ would be extended to its Australian stores.
SVV's plan for 2026 includes opening around 25 new stores globally, more than 20 of which will be in the United States across 11 states. Savers Australia boss Michael Fisher said the company would open at least one further Australian store in the coming year, though he did not specify a location. Savers currently employs 1,250 staff across stores in New South Wales, Victoria, and South Australia.
- The source does not state the specific payment rates Savers offers non-profit partners per kilogram or item of donated goods.
- The source does not state what proportion of unsold merchandise ends up in landfill, is exported to the rag trade, or is recycled.
- The source does not state whether Savers' Australian revenue or profit figures are disclosed separately from its global accounts.
- The source does not state the locations under consideration for Savers' next Australian store opening.
- The source does not state the basis on which SVV's $2.2 billion valuation figure was calculated or the date on which it was recorded.
- The source does not state whether Diabetes Victoria's arrangement with Savers is exclusive or whether other non-profits hold similar contracts in the same regions.
Read the original at ABC News Australia