Skip to content

Resale franchisor gets second wind after Winmark

NTY Clothing Exchange Ron Olson standing in neat, organized store for grand opening
NTY Clothing Exchange in Minnetonka sells used teen clothing in an environment that feels like a new-merchandise store

As Sarah Buzzell perused items at the new NTY Clothing Exchange in Minnetonka, she couldn’t help but notice the pristine quality of the used merchandise, rock-bottom prices — and that lulling fragrance.

“This place smells amazing,” said the Ramsey resident, as the aroma of coconut lime verbena wafted from the store’s ScentAir machine. “The stuff looks new, and the store is nice and clean.”
Ron Olson, president of NTY Franchise Co., says it’s his meticulous attention to detail that has made him a resounding success in the resale business. Sure, updated signage and fixtures are important, but so is preventing secondhand shops from smelling like attics. “NTY is about looking and smelling like a store that sells new merchandise,” Olson said.

The NTY (New to You) Clothing Exchange, which buys and sells used clothing for teens and young adults, builds on five other resale concepts Olson oversees through his franchise company. His latest, NTY Kids, also recently opened in Minnetonka and will start selling clothes in September. Other NTY entities include New Uses, which sells used furniture, Way to Go Sports, Clothes Mentor and Device Pitstop, which specializes in secondhand electronics.

Olson has been a resale pioneer, making a name for himself at Grow Biz, a company that sold franchises for secondhand stores and was later renamed Winmark under new ownership. The company launched well-known resale names such as Play It Again Sports, Once Upon a Child and Plato’s Closet, which sells teen merchandise.
Olson left the company in 2000 and retired, but returned to the resale business in 2006, buying three Clothes Mentor stores and the naming rights in 2007. He has grown the business to more than 100 stores.

Now at 73, he’s still selling franchises that buy and sell used goods. And his timing couldn’t be better. Nationally, the number of used-goods stores has grown 7 percent each year since 2010, making it a $13 billion industry in 2012, reports the National Association of Resale and Thrift Shops. Franchising is also heating up, with the number of U.S. franchises expected to grow 1.7 percent this year, the highest growth rate since before the recession.

Clothes Mentor, in particular, has revolutionized the resale industry. The women’s clothing retailer one-upped the consignment concept by paying cash up front, no waiting, demanding current styles in near perfect condition. “Twenty years ago there were only consignment stores,” Olson said. “We brought in a more commercially accepted brand that looked like stores that sold new retail.”

Clothes Mentor has 110 locations nationally, including eight in the Twin Cities area, with more than 60 to open soon. Winmark, now Olson’s competitor, is copying the success of Clothes Mentor by opening similar stores called Style Encore that cater to the same demographic — women in their late 20s to mid-50s. Locations in Eagan and Maple Grove opened recently.

Olson’s advantage is his history of experience in the resale franchise business, said Gaylen Knack, a franchise attorney at Gray Plant Mooty in Minneapolis. “Others have come in and had average to medium success, but Ron stays on top of trends and can offer plenty of guidance to franchisees who may not have a retail background,” he said.

Olson and NTY have also branched out into areas untested by competitors. New Uses, which has 10 locations, including one in Minnetonka and one in Maple Grove, sells used household goods and furniture. The growth in New Uses stores has been slower than at Clothes Mentor. “It’s more challenging than selling clothes,” Olson said. “We’ve got plenty of customers who want to buy. Our same-store sales were up 18 percent last year, but it’s harder to get people to bring in their furniture to sell.”

Earlier this year, the company opened Device Pitstop in Minnetonka, a store that buys, sells and services used laptops, tablets and cellphones. Olson projects 300 more stores within five years. With seven stores open nationwide, the average store had revenues of $800,000 last year on a 60 percent margin, Olson said.

While the resale market seems to have unlimited potential as consumers seek value, not everything has worked for Olson. Categories such as ReTool had a wrench thrown at them when men didn’t want to sell their used tools. “We could never get enough used product to sell,” Olson said. “It’s the same thing with adult men and their clothes. After their 20s, they wear them out to a point that they’re not re-sellable. But in their teens and 20s, they grow out of them before they can wear them out.”

But those are but two rough spots in a sea of unwanted merchandise consumers want to recycle for cash. “The demand is there. We’ve become the supply,” Olson said.

nty-minnetonka
NTY Clothing Exchange in Minnetonka sells used teen clothing in an environment that feels like a new-merchandise store

New-to-You franchises

  • Clothes Mentor (used clothing and accessories for women): 110 stores, eight in the Twin Cities area.
  • New Uses (used furniture and home goods): 10 stores including Maple Grove and Minnetonka, and one opening soon in Woodbury.
  • Way to Go Sports (used sporting equipment): Two stores in Minnetonka and Golden Valley
  • Device Pitstop (used personal electronics ): Seven stores including Minnetonka, and a dozen more planned for the Twin Cities area. Agreements for stores in Maple Grove, Eden Prairie, Richfield, Woodbury, Maplewood, Burnsville and Duluth have been signed.
  • NTY Clothing Exchange (used clothing and accessories for teens and young adults): One store open in Minnetonka.
  • Children’s Orchard (used clothing, shoes, equipment for kids.

By John Ewoldt (StarTribune)

Ronald G. Olson

President

Ron Olson has been President and a Director of NTY Franchise Company since October 2006. Ron’s background included starting his career at Dayton’s Department Store, where he held many management positions. In 1977 he opened his own furniture store in Minnesota, which was a Drexel Heritage prototype store. In 1988 he co-founded Grow Biz International, now called Winmark. The first franchise rights that Olson purchased and started marketing was Play It Again Sports. Olson continued buying the Franchise rights for Once Upon A Child, Plato’s Closet, and Music Go Round. Today there over 1,000 Franchise locations.

Under NTY Franchise Company, the franchise rights were bought for Clothes Mentor and New Uses. In 2013 Olson bought Laptop Exchange and changed the name to Device Pitstop. In 2014 the company opened NTY Clothing Exchange and NTY Kids, now Children’s Orchard. There are currently 204 stores sold and 133 stores opened under the NTY Franchise umbrella.

Chad Olson

Chief Operations Officer

Chad Olson has been Chief Operations Officer of NTY Franchise Company since January 2007. From May 1994 to December 2006, he held various positions for Winmark Corporation (f/k/a Grow Biz International, Inc.), including Field Operations Manager for the Once Upon a Child concept from 1999 to 2002, and Regional Operations Manager for the Plato’s Closet concept from 2002 to 2006.

Sarah Primmer

Vice President of Finance & Human Resources

Sarah Primmer is the Vice President of Finance and Human Resources for NTY Franchise Company. She joined the company in January 2014. Prior to joining NTY, Sarah spent over 25 years as the controller and business manager of a local sales and marketing firm calling on Target stores.

Michael D. Smith

Vice President of Strategic Planning

Michael D. Smith has held numerous roles with NTY Franchise since 2010. He is currently the Vice President of Franchise Development and Strategic Planning. From December 2000 to July 2010, Michael held the position of Chief Executive Officer and Co-Founder of the franchise company Laptop Xchange. From June 1994 to December 2000, Michael held numerous roles within the Grow Biz International brands of Play It Again Sports and Computer Renaissance. These roles included Corporate Store Management, Field Operation Specialist, and Franchisee.

Jenny Mann

Vice President of Operations | Executive Director of IT

Jenny Mann is the Senior Vice President Clothes Mentor and Children’s Orchard. In February of 2024, Jenny took on her current role overseeing IT, Marketing and the e-commerce platforms for both brands. Prior to this, Jenny was the Director of Marketing for NTY Franchise Company since January 2013. Jenny started with the NTY Franchise Company in 2008 with Clothes Mentor and has held many roles, including; Store Manager, New Store Opener, and Regional Operations Manager. Before joining NTY Franchise Company, Jenny worked for Old Navy (Gap, Inc.) and Target in management roles.

Michelle Vaudrin

Senior Director of Operations

Michelle Vaudrin is the Senior Director of Operations for Clothes Mentor and Children’s Orchard. Prior to joining NTY Franchise Company in March 2016, she worked in leadership roles for Burlington, American Eagle and Macy’s. Michelle attended University of Wisconsin-Stout with a degree in Retail Merchandising and Business Administration. She brings extensive background in training of strategies, merchandising, customer service and multi-unit store operations to the team.

Ashley Huebner

Director of Marketing

Ashley Huebner oversees NTY Franchise Company’s marketing and advertising efforts to drive sales, build brand awareness and lead the planning on how to effectively market both brands. She leads creative initiatives for NTY Franchise Company, driving the brands’ vision in aesthetics, tone, and trends to elevate our brand position as a leader in the resale category. Ashley joined the Clothes Mentor team in March of 2015. Ashley has 8+ years of Graphic Design experience. Ashley holds a strong background in design, user experience, and a passion for creativity. She holds a BA degree in Advertising and Art.

Jessica Fix

Franchise Contract and Office Administrator

Jessica Fix is the Franchise Contracts and Office Administrator for NTY Franchise Company. She started with the company in January of 2018. Jessica works alongside the Franchise Development Team and provides office support to the headquarter office. She has 20 years in the franchise industry, previously working for Carlson Leisure Group/Travel Leaders Franchise Group in a variety of roles, such as Database Coordinator, Legal Contract Administrator, and Executive Assistant to the Franchise Sales Team.