Spanky's changes hands

New owner Rachel Phillips is all smiles at Spanky’s, the east Vancouver clothing consignment store she bought in June. (Cami Joner/The Columbian)

Longtime Vancouver consignment store Spanky's has been sold to a new proprietor with a penchant for stylish bargains.

That's why Portland entrepreneur Rachel Phillips said she jumped at the chance to buy the east Vancouver resale clothing business from two of its founders, Lee Rafferty and Sandy Kramer. The sale closed June 6 for an undisclosed price. The shop's third founder, Jan Phillips (no relation to Rachel Phillips), retired in 2006.

"I love resale fashion and I was looking for a business to run," said Rachel Phillips, 38.

Former owners Rafferty and Kramer believe they have found the perfect buyer for the business they nurtured for 28 years.

"She (Phillips) is the ideal person for taking it to the next generation," said Rafferty, 58.

Phillips grew up helping out in her family's retail business, an office supply company in Portland.

"I started there when I was of legal age, then moved up to customer service manager," Phillips said.

She earned her bachelor's degree in general management and human resources management.

"The customer service part will be great for this kind of business," Phillips said.

Spanky's was launched in 1981 in a small downtown Vancouver cottage on East Evergreen Boulevard. Its consignment model caught on quickly with customers. Each sale of new and "gently used" clothing under $40 generates 40 percent to the merchandise owner and 60 percent to Spanky's. Sales over $40 provide a 50-50 split.

The business moved to a larger building on Main Street in 1983. In 1999, Spanky's opened its second site in east Vancouver, which is now at 13503 S.E. Mill Plain Blvd.

Business on the east side quickly outpaced traffic at the Main Street store, which closed in 2008. Rafferty and Kramer own the vacant two-story building on the corner of West Ninth and Main streets. It is for sale.

"We're hoping someone comes along and wants to do something exciting on that corner," Rafferty said.

A passionate advocate of downtown business, Rafferty said she hopes to devote more time promoting the sector.

"I want to work for someone who is doing something to re-energize the area," she said, adding that she isn't certain what form that will take.

As for Spanky's, Phillips said she does not plan to make radical changes to the store, which has accommodated thousands of consigners over the years.

"Lee and Sandy have done a great job of building that base, and I hope to continue that," she said. "For now, this formula seems to work pretty good."

Rafferty said store sales reached a record high in 2007.

"And we had a very good year in 2008, considering what's happened to other parts of the retail sector," Rafferty said. Phillips said she expects her store's popularity to thrive as penny-pinching consumers adjust their shopping habits in reaction to job losses, wage cuts and reduced stock portfolios.

"They're going to come to a Spanky's before they go to the mall. I'm hoping that behavior will continue because of the lessons they've learned," Phillips said.