The mother-daughter duo behind the thrift store Buffalo Exchange explains how they built a $103 million company from used clothes

In the 1970s, thrift shopping was far from the favored Gen Z weekend activity that it is today. Back then, secondhand clothing carried a stigma as a lower-class necessity, said Kerstin Block, the president and co-owner of Buffalo Exchange.

"Resale was not popular then," she said. "We have worked to change that perception over the years." 

And they did: Her company grew from one family-run store in 1974 to a chain of 41 family-owned and -operated stores across the US. In 2022, Buffalo Exchange's revenue hit $103 million, which Insider verified with documentation. A spokesperson declined to share current figures as the company at the time was still recovering from closing its stores for three months during the pandemic. 

Decades of youth culture have made the secondhand market what it is today — an appreciation of vintage clothing and a more environmentally conscious way of shopping. Searches for "second-hand shop" on Google have spiked.

The industry is expected to double in size, reaching $350 billion by 2027, and Buffalo Exchange is at the forefront of resale's emerging appeal. The founders achieved lasting success by drawing on their strengths and popularizing a unique business model.

"The resale industry as a whole has just gotten bigger, so there's room for more people in it, which helps everybody inside the industry," said Kerstin's daughter, Rebecca Block, who grew up working in the store from age 9 and is now the company's vice president.

The mother-daughter-duo detailed three keys to the brand's success.