Winmark's Competitiveness

The company operates in a competitive environment across multiple retail segments. In apparel, sporting goods, and musical instruments, it competes with retailers possessing greater financial resources, established local stores, discount chains, and traditional retail outlets. Full-line retailers generally offer little or no used merchandise. Competition for used merchandise sales includes resale, thrift, and consignment shops, garage and rummage sales, and online marketplaces such as eBay, craigslist, Facebook Marketplace, Poshmark, thredUP, and Amazon. Retail and consumer apparel brands have also created platforms for selling previously used items. Plato’s Closet franchise stores primarily compete with specialty apparel retailers including American Eagle, Gap, Abercrombie & Fitch, Old Navy, and Hollister, as well as other franchisors in the teenage resale clothing market and large retailers such as Target and Walmart. Once Upon A Child franchisees mainly compete with Walmart, Target, specialty children’s retail stores like Carter’s and Gap Kids, and other franchisors in the specialty children’s resale market. Play It Again Sports franchisees face competition from large retailers including Dick’s Sporting Goods and Academy Sports & Outdoors, as well as regional and local competitors.