Keego Harbor — As tariffs and inflation squeeze Michigan companies, some under-the-radar businesses are thriving because they never needed imports in the first place.
From thrift stores to consignment boutiques to salvage lumber yards, these reuse and resale retailers have, in some cases, benefited from the tariffs President Donald Trump implemented last year. Their secret sauce? Relying on a circular supply chain that’s entirely domestic, insulating them from shifts in trade policy.
“Tariffs only affect vintage in a positive way because these are already here, already made, already available, there’s no tariffs involved,” said Deborah Slobin, co-owner of Le Shoppe Modern, a consignment store in Keego Harbor. “… We’re not importing anything.”
Stanley Lim, associate professor in supply chain management at Michigan State University’s Broad College of Business, said resale is one of retail’s fastest-growing segments as inflation remains stubbornly high. Consumer prices rose at an annual pace of 4.2% in May, the highest rate in more than three years.
“Rising prices and product shortages have nudged consumers toward used furniture, clothing and household goods as ‘budget relief,'” Lim said in an email.
The same dynamic holds for salvage and reclaimed materials dealers. Businesses that sell recovered lumber, salvaged architectural fixtures and industrial scrap operate almost entirely outside global supply chains. When tariffs and freight costs push up the price of new cabinets, flooring or imported décor, salvage shops become the value option for both DIY buyers and small contractors.
“Their supply is tied more to local demolition, remodeling and industrial scrap than to global container flows, insulating them from tariff shocks while letting them ride the price umbrella that tariffs create,” Lim said.
Salvaging profits while avoiding tariffs
Kendra Patterson, co-owner of Michigan Barn Wood & Salvage in Mason, retails locally sourced lumber from downed trees, plus furniture and Michigan-made items from more than 100 vendors at a 30,000-square-foot store.
That model has allowed the business to keep its prices moderate compared with big-box stores that have faced tariffs on their goods, Patterson said.
“Overall, customers are not seeing our prices increase as much. … I think if we were trying to compete with other stores that only order their stuff wholesale and maybe all of their stuff is being impacted by that, their prices are going to be so much more than ours.”
That, in turn, has helped boost sales by 35% compared with last year, Patterson said.
“Our furniture company has seen a huge boost in business. I think the exports and the tariff on furniture (from) overseas is so much more expensive, but the quality just isn’t there,” she said. “We’re getting questions every day of people wanting to get furniture made for their homes and businesses.”
Customer Burke Heiselt, 21, of Mason said he shops at Michigan Barn Wood & Salvage to find reasonably priced, high-quality oak or white oak that he saws into tables, stools and other pieces.
“My workbench in my room is just a giant trunk I found from here — it was $105,” he said. “The quality found here is not mass production. When they run out of stock, they run out of stock, and it’s not like they have a secret room where they can pump out 3,000 more. That’s what makes it rare but also precious.”
Jen Wagoner, 55, of Mason, picked out a small, handcrafted white and yellow sunflower on a recent visit to Michigan Barn Wood & Salvage. She said she prioritizes patronizing businesses in her hometown, from bigger retailers like Meijer to independent operators.
“We keep our money in Mason … We shop local,” she said. “We shop small.”
Research since the pandemic shows a lasting shift toward neighborhood shopping and locally sourced products, with most consumers saying they intend to buy local more often, Lim said. “Some customers discover local alternatives and stick with them, especially in categories where design, story, or service matter.”
Resellers reap rewards
Small retailers that can quickly pivot from imported lines to regional makers have an edge when national chains face empty shelves, long lead times or volatile pricing on goods tied to tariff-affected countries.
Leah Paige Cooley, regional retail sales manager for STEP Thrift Stores, has watched the segment weather recessions, hurricanes and a pandemic over nearly 25 years in the business, and she says the current economic climate is no different. The nonprofit operates resale shops in Dearborn Heights, Southgate and Wayne.
“Inflation and tariff-related price increases may further reinforce the value proposition of thrift retail,” Cooley said. “As the cost of new clothing, housewares, furniture, imported goods and craft materials rises, consumers naturally look for alternatives that allow them to maintain purchasing power.”
STEP Thrift responded to the demand in April by opening a “Value Vault” at its Dearborn Heights store, where customers can buy merchandise by the pound.
Southeast Michigan Salvation Army stores also have seen sales growth, especially at the charity’s By The Pound store in Clinton Township, which is expected to gross over $1 million this year — about a 20% jump from last year, said Jacqulynn Idzior, a regional administrator for the Salvation Army.
“In the few years that it’s been open, it’s increased 10-fold,” Idzior said.
Higher-brow resale businesses are benefitting as well.
At Le Shoppe Modern, Slobin said having stable prices and a steady supply of immediately available furniture and other home furnishings has boosted foot traffic. Inside her 25,000-square-foot boutique, shoppers can browse art, vintage pottery, lamps, sofas, chairs, tables and more at prices ranging from $50 to $500,000.
“Because it’s available right now, people before who were not open to buying ‘second hand’ are seeing now the advantages to it: the craftmanship, quality is far superior than what they’re making now,” Slobin said.
The business operates in an opposite manner from big-box chain retailers, which import much of their goods to sell locally. Le Shoppe Modern gets 95% of its inventory from Michigan homes and luxury businesses, while selling those items to customers across the country and even around the world.
“Right now, I’m shipping some chairs to Abu Dhabi,” Slobin said. “I’m shipping some cabinets to Germany.” And because the buyer pays for shipping, the store avoids those costs. Le Shoppe Modern receives orders from New York weekly and from Los Angeles monthly.
Vic Veda, spokesperson for the Michigan Retailers Association, sees tariffs as focusing shoppers’ attention on where items are sourced, even after the Supreme Court struck down some of Trump’s levies in February.
“Consumers are becoming hyper-aware of where their goods originate and how much embedded cost they are paying due to supply chain friction,” Veda said. “When a new imported sofa or a bundle of standard dimensional lumber jumps 20% in price, alternative local channels suddenly look incredibly attractive.”
The economic case goes beyond price. When a consumer spends a dollar at a retailer importing goods from overseas, a significant portion leaves the state to cover international logistics, manufacturing and customs duties.
That same dollar spent at a consignment shop or salvage yard stays in the community — paying local staff and supporting Michigan businesses.
“We don’t want to overshadow that because these retailers have seen growth over the past year,” Veda said. “The tariff discussion as a whole has shifted consumer awareness a little bit … (and) consumer intention to support small may be as a result of the tariff talk. Consumers know that businesses are impacted by this too, and they can do their part by supporting their local retailer, their small businesses in their community and keep more money in Michigan.”
mjohnson@detroitnews.com
This article originally appeared on The Detroit News: These Michigan businesses are finding a silver lining with tariffs
Reporting by Myesha Johnson, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
By Myesha Johnson, The Detroit News | USA TODAY Network
