Savers
| Company type | Public |
|---|---|
| Industry | Thrift retail |
| Founded | 1954 in San Francisco, California, United States |
| Founder | Bill Ellison |
| Headquarters | Bellevue, Washington , United States |
Area served | United States, Canada, Australia |
| Products | Donated apparel and household goods |
| Owner | Ares Management (majority owner) |
Savers Value Village Inc. is a publicly held, profit-driven thrift retailer based in Bellevue, Washington, predominantly owned by the private equity firm Ares Management. With a network exceeding 315 outlets throughout the United States, Canada, and Australia, Savers acquires donated apparel and household goods from nonprofit organizations. The company operates under the name Value Village in the Pacific Northwest, the Baltimore metropolitan area, and much of Canada; in Quebec, it is known as Village des Valeurs; and in Chicago along with parts of the Washington, DC region, it uses the Unique brand. In other areas of the U.S. and Australia, its stores are branded as Savers.
History
The business was established in 1954 by entrepreneur Bill Ellison in San Francisco’s Mission District. By 1970, it had grown to six stores operating under various names such as Value Village and Thrift Village. That same year, the company moved its headquarters to Bellevue, Washington. Its expansion into Canada began with a store opening in Vancouver in 1980, followed by entry into the Australian market in 1997.
Ellison remained chairman until 2000 and passed away in 2008. Over time, Savers experienced several private equity ownership transitions: Berkshire Partners acquired a half stake in 2000; Freeman Spogli & Co. took majority control in 2006; Leonard Green & Partners alongside TPG Capital purchased the company in 2012. In 2019, Ares Management together with Crescent Capital Group assumed ownership through restructuring; Ares later bought out Crescent’s share in 2021 and spearheaded Savers’ initial public offering on June 29, 2023, maintaining an 88% ownership interest.
This combination of strategic leadership and private equity support has driven Savers’ expansion and strengthened its position within the thrift retail sector.
Business operations
Savers collaborates with local nonprofit organizations by buying donated goods for resale. Nonprofits provide donations directly to Savers, which compensates them at a fixed bulk rate regardless of how items perform on store shelves. By 2011, Savers had paid approximately $1.1 billion to around 130 nonprofit partners and achieved $1 billion in revenue with a global footprint of 315 stores by 2012.
Items suitable for resale are offered in stores, while those unsold or unsuitable enter Savers’ recycling initiatives. The company employs international buyers for recyclable materials to reduce waste effectively. In Minnesota, payments to nonprofits vary between $0.02 and $0.053 per pound depending on item category. By late 2018, all plastic bags were eliminated from Savers’ retail locations.
Value Village’s reusable goods donation campaign with Diabetes Canada generates close to $5 million CAD annually dedicated to diabetes research.
Controversy
In May 2015, the Minnesota Attorney General filed a lawsuit against Savers alleging deceptive practices concerning the proportion of proceeds returned to partner charities. The dispute was resolved in June 2015 with a settlement that increased transparency measures and included payments of $300,000 to each Minnesota nonprofit partner to mitigate fundraising interruptions. That same year, the Attorney General also sued the Epilepsy Foundation for insufficient oversight of its collaboration with Savers; this partnership accounted for between 38% and 50% of the Foundation’s revenue.
In November 2019, King County Superior Court found that Savers had misled customers into believing it operated as a charitable organization; however, this decision was reversed by a Washington state appeals court in August 2021. Subsequently, the Washington Supreme Court ruled that actions by the Attorney General’s Office infringed upon Savers’ First Amendment rights. Following these rulings, King County Superior Court mandated that the state reimburse Savers for legal fees due to aggressive litigation tactics employed by the Attorney General’s Office.
Safety Issues
In December 2018, a family from Pitt Meadows, British Columbia, discovered that their six-year-old child had come across a hypodermic needle along with two partially used glue tubes inside a secondhand Mouse Trap purchased at a Value Village store located in Coquitlam, British Columbia.
In October 2019, an individual experienced a needlestick injury while trying on footwear at a Value Village outlet in New Westminster, British Columbia. This incident prompted medical advice for blood testing to check for HIV and hepatitis.
Pricing Practices
Value Village has been subject to criticism within Canada regarding its pricing strategies. There have been accounts of products being priced above their original retail cost. The company has responded by advising customers to bring any suspected pricing issues to the attention of store managers, who are tasked with addressing such concerns promptly.
Valentina Guerra, writing for the Brock Press, condemned Value Village for substituting paid employees with self-service checkout systems, launching expensive boutique stores in Toronto, and raising prices on previously owned merchandise. She described these actions as unethical and called on consumers to consider boycotting the retailer.