Only 30% of family businesses survive to the second generation, often due to a lack of succession planning. Buffalo Exchange, a secondhand clothing retailer founded in 1974, has defied those odds. In early 2024, Rebecca Block, the daughter of founders Kerstin and Spencer Block, officially became CEO. The company began with a single store in Tucson, AZ, when the secondhand clothing market was far less mainstream. Today, Buffalo Exchange operates 41 locations across 15 states, with annual revenue near $100 million. Rebecca credits the shift in public attitudes toward used clothing, now seen as a source of pride rather than stigma, as a major driver of growth. The leadership transition at Buffalo Exchange was nearly a decade in the making, a deliberate approach praised by experts like NYU Stern School of Business Professor Thomaï Serdari for fostering smoother successions. Now responsible for guiding the company forward, Block combines lessons from its history with modern tools like demographic research to make important decisions, like choosing new store locations. While digital resale platforms have become more prevalent, Buffalo Exchange has leaned into its brick-and-mortar roots. After three attempts to sell online, Block decided to focus on the benefits of a tactile, in-store experience, while promoting the company on social media. Looking ahead, Block is already planning for the next era of company leadership, involving her daughter Melissa in the business early. It’s an attempt to defy the odds once again, as only 12% of family businesses make it to the third generation. In a groundbreaking four-episode series, Yahoo Finance explores the world of entrepreneurship by delving into a specific stage of each small business-building process through inspiring stories from those who have navigated this journey. Learn how to grow your small business from those who rose above failures, barriers, and setbacks to achieve robust growth and success. For more on our FEARLESS series, click here and tune in to Yahoo Finance Live on Fridays at 11 AM EST. This post was written by Luke Brooks.
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