Dear lovely humans,

As we head into a new year and prepare to reopen the doors at Pearce, we wanted to take a moment to speak to you directly - honestly, gently, and from the heart.

Over the holiday period, we’ve been doing a lot of quiet, behind-the-scenes work to make sure The Little Capsule Co. can continue to exist in the way it always has - thoughtful, affordable, circular, and deeply rooted in community.

That work hasn’t been easy.

As TLCco has grown, so have the costs that come with running a bricks-and-mortar circular store. Wages. Rent. Super. Shipping. Storage. Donations. The many invisible hours that go into offering free appraisals, careful grading, beautiful presentation, and a boutique experience that values quality over volume.

In a perfect world, all of this would be free.
But the reality is, it isn’t.

There are resale stores that charge appraisal fees to cover these costs. We’ve explored that model carefully - and it’s not something that feels right for TLCco. Free appraisals are part of our ethos, and something we’ve worked incredibly hard to protect.

That said, we also can’t ignore the data.

Over time, we’ve seen a small but increasingly significant number of submissions in which extremely large volumes of low-quality items are repeatedly brought in, many pieces need to be freighted or disposed of at our expense, and these same submitters have never spent any money to support the store or its goals. That is absolutely anyone’s prerogative - but it does place real pressure on the business and our team.

After consulting with business advisors and resale experts, and after a lot of careful consideration, we’ve landed on what we believe is the fairest and most balanced solution. One that allows us to literally keep the lights on, while still protecting the spirit of the store.

What’s changing - and when

We reopen on 20 January, and until 31 January, in-store credit will work exactly as it always has.

From 1 February, circular credit can be used for up to 75% of the value of eligible circular items in-store, with the remaining 25% paid via another method at checkout.

What this looks like in real life

For most of our regular shoppers, this will feel very familiar.

For example:

• If you purchase an item for $10

• You’ll use $7.50 in credit

• And contribute $2.50 in cash

That small top-up goes directly towards helping us pay our staff, cover rent, and keep TLCco operating as a boutique circular store - not a volume-driven, race-to-the-bottom resale model.

Why we’re confident this is fair

When we looked closely at the numbers, this change won’t meaningfully impact around 99% of our regular customers. Most already shop using a combination of credit and a small cash top-up. This simply formalises what’s already happening for the majority of our community.

Appraisal offers - whether cash or credit - have always been made at TLCco’s discretion, assessed case by case based on condition, demand and stock levels. If you’re specifically hoping for a cash offer, we ask that you let a senior staff member know at the time of dropping off your appraisal so expectations can be set early and disappointment avoided later.

As we head into the new year, we also encourage everyone to take a moment to familiarise themselves with our updated Terms and Conditions, which outline how appraisals, credit and offers work.

Our goal has always been the same - to create a thoughtful, circular space that supports families, honours quality, and gives little clothes a longer, more meaningful life. This change helps ensure we can keep doing that - sustainably and respectfully - for the long term.

Thank you for being part of the TLCco village.
Thank you for your trust, your kindness, and your support.

Every purchase plays its part. 💛

With love,
M & J x