July 5, 2022

Shane Oien is going big and going higher end with his version of the increasingly popular bin- or crate-based discount store concept.

His store, called Crate, is opening in an 11,200-square-foot space at 2707 S. Carolyn Ave. that used to be the office headquarters of CarsForSale.com.

Oien, who lives in Sioux Falls, opened his first Crate location in Rapid City a year ago.

“I’m aware of the independently owned discount stores out there, and we wanted to venture into that and do it with a more upscale look and feel, not a thrift store-type feel,” he said.

It’s a family business – his sister, niece and her husband are partners in the Rapid City store – and his nephew and his wife plus the Rapid City partners own the Sioux Falls location.

In Rapid City, they started with a 5,100-square-foot store, quickly moved into a larger one and now are looking for an even bigger location.

“The model is pretty cool,” Oien said. “We’re kind of hybrid.”

Like some other bin-based stores, Crate begins each week with mystery bins of merchandise. Everything in the bin sells for $8 on the first day of operation, $6 the second day, $3 the next and $1 on the final day.

“And we move the product through and start over the next week,” Oien said. “That’s what really intrigued me, having been in retail, was the inventory management. There isn’t inventory management. I don’t have to reorder one purple scarf to restock the shelf.”

Crate also will have a more traditional discount section in addition to the weekly rotating bins. That will include larger items such as furniture and bigger appliances that will start at 50 percent off retail price.

“The retail stuff will stay out. We try to manage that for two to three weeks, and if it’s not moving, we can move it to an online business or decide it goes into the bin as a treasure item.”

The store also carries Apple products and other computers and laptops, which come with warranties and a return policy.

“We don’t know what we’re getting until it comes in and we process the load and take out anything unsaleable,” Oien said. “We started reaching across the country, went to trade shows … and started really exploring this bin store concept, but we wanted to mirror and model an upscale look, so we put a lot of thought into the decor and design. We’re completely redoing the building … so it doesn’t feel like you’re in a discount store.”

The bins include everything from clothing and makeup to food and household items.

If consumers seem to become more cash-strapped, “I may pivot to even more essentials,” Oien said. “Some can pass on trying to find a speaker or a pan set, but if they’re having trouble getting Crest toothpaste or Airborne vitamins, we have that type of product. It’s just how much we promote it or make it front and center.”

The Sioux Falls location also will have space to eventually sell appliances and bedding, he said.

The hope is to open in mid-July – about the same time he’s also partnering with a group to open a store in Oklahoma City.

“We’re not the first bin store in town, but we are doing things different and expanding a concept that’s done very well in Rapid and bringing it back home where I live,” he said. “We found reliable sources (for products), and those relationships are very, very important to know that you’re getting quality.”