Profiles in Textile and Carpet Recycling, Summer 2004

Goodwill Southern California

by Maggie Coulter

Thrift stores are typically the first entry of clothes and many other used consumer goods into the reuse and recycling process. "About 60 percent of our donations and 50 percent of our sales are from clothing," explains Peter Duda, retail manager for Goodwill Southern California (Goodwill S.C.). "We have about 40 stores that accept donation. We also have trailer and free-standing donation centers whose material in turn goes to individual stores."

At one time Goodwill S.C. had a centralized operation. All donations came to one place and broken items could be repaired. That is no longer true, so broken items are disposed of along with any soiled clothing. “Most clothing comes already washed and in pretty good condition,” said Duda. “People donate because they want it to be used again.”

After sorting out clothing that does not smell fresh, the stores will pick out about half of what they receive to display on the racks. The rest goes immediately to one of three clearance centers. Items are on the rack for five weeks, then the price is cut in half. If the item still hasn’t sold, it goes to the clearance center. “In the thrift business,” Duda notes, “the great majority of the items that will sell, sell within 48 hours of going on a rack.”
Open seven days a week, Goodwill S.C.’s clearance centers are located in San Bernardino, Panorama City, and Los Angeles. Clothes sent to these clearance centers are put on big tables where the public can buy items for lower prices than in the Goodwill S.C. stores. Duda notes those who come to buy include the general public, people buying for yard sales, and dealers buying for other thrifts.

The clearance centers operate at a quick pace because they have items coming from their stores all the time. “Basically a store turns over its entire inventory every five weeks,” explains Duda. If items don’t sell from the clearance tables within 24 hours or less, they are bundled and auctioned off Auctions are going on all the time.”

At the end of 48 hours, whatever hasn’t sold is bailed and sold to companies that will make rags or shoddy from them. In the bundling process, Goodwill tries to make sure each bundle contains saleable items. “Less than 5 percent are rags or not usable items, notes Duda. “Sometimes we will get just fabric. Usually everything is wearable.” To keep the material moving, Goodwill S. C. rents out lot space on which it sets up tents to help expedite dealers loading their trucks.

Dealers are usually individuals or small businesses, Duda explains. “They aren’t big companies. Some buy a few bales and load them on a pick-up truck.” He doesn’t know where all the material ends up, noting, “the world market for goods is always changing. Some dealers take clothes and hard goods to Mexico to sell. Others will sell to business that sell the used clothing in other countries.”

Goodwill S.C. has not gotten involved in the re-marketing of their clothing. “It is complicated and we don’t have the expertise,” notes Duda. “There are plenty of people who buy from us. We compare prices between companies and try to get the most per pound. The market fluctuates. Current rates are 5–10 cents per pound.”

Each Goodwill is autonomous, explains Duda, and each is responsible for their own fundraising. But they work under the national umbrella which provides an open network for communication and information sharing. Goodwill International also gets rates on goods and shares best practices.

Goodwill S.C. sometimes assists smaller charities and thrift stores that don’t have a system for disposing of donations because they are too small. One time a homeless aid group got more donations of clothing than they could use. The group gave the clothing to Goodwill S.C.; in exchange, they got vouchers that their homeless clients could redeem in a Goodwill store. Goodwill S.C. also did this for victims of the San Bernardino Mtns.’ fire.

While Goodwill S.C. maximizes the use of its donations to help its own programs, “we also recognize the needs addressed by the dealers who buy the clothing and other goods we can’t sell,” explains Duda. “We don’t repair goods, but these dealers will take broken TVs, bicycles, toys, and other household goods to Mexico where people will repair them. There is a huge need for this in these times; there are desperately poor people. This is the only way they can afford to buy.”

Contact information:
Pete Duda
Retail Administrator
Goodwill Southern California
342 North San Fernando Rd.
Los Angeles, CA 90031
Pduda@goodwillsocal.org
(323) 539-2033
www.goodwillsocal.org

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Last updated: August 01, 2008