In a very telling turn of events, Goodwill, the cornerstone of charitable clothing retailers, is closing multiple locations and laying off many of its employees.
The concept of community service was central to the chain thrift store’s success. By accepting high-quality donations, they are able to employ the disabled, veterans, and others in need. It was established as a non-profit organization with the sole purpose of doing good.
However, the economy in the United States has been changing dramatically for several years. People’s wallets are tighter than ever before, and they simply do not donate as much to Goodwill as they once did. Rather than donating their unwanted clothing to thrift stores, people are reselling items to help pay their bills. The age of abundance is over.
As donations decline, wages and overheads for stores like Goodwill rise. The employees must be paid a living wage, which is simply not possible when the items in the shop are priced too low. Overheads, such as power and rent payments, are also at an all-time high.
As a result, people have noticed price increases at thrift stores such as Goodwill. Now, it’s actually cheaper to buy ‘fast fashion’ for your clothes, import from abroad, or simply go to a superstore like Walmart for everything else. Goodwill is no longer an inexpensive option.
Their business model has been unable to withstand the US recession. As a result, Goodwill has been forced to close several locations and lay off employees in California.
13 Goodwill Locations Set To Shut Up Shop
According to KRON4, 13 Goodwill stores will permanently close in California. This includes four Bay Area stores and six donation centers. Along with these, Goodwill is closing two regional headquarters and an Oakland warehouse.
Hundreds of employees will lose their jobs as a result of the shutdowns. However, they are all given the opportunity to apply for new positions in other stores and locations.
However, this is not the best option for the majority of them. Goodwill has always prioritized disabled hires and veterans. They are often unable to uproot and relocate their lives.
