Times are tough for retail. Sales across all categories plunged a record-setting 8.7% last month. Clothing and accessories took the hardest hit, falling 50.5%.
So it might come as a surprise that luxury resale platforms — think The RealReal and Rebag — are looking especially chic these days.
Investors are betting on pre-owned Prada
As Business of Fashion reports, the secondhand specialists at the Vestiaire Collective recently raised a fresh $63m in funding. The company’s CEO didn’t dish on its exact valuation, but did divulge that the figure is 50% higher than it was in June 2019.
And with clothes horses homebound and bored, people are cleaning out their closets and surfing the web for their next splurge — yielding big business.
- Vestiaire Collective reported its biggest ever sales day ever last week.
- Daily listings are 33% higher than they were before the pandemic.
- And European sales are up 20%, too.
Pre-pandemic, luxury resale platforms were expected to collectively rake in $36B by next year. Now, that number could be higher.
The boom could toss the luxury sector a (very stylish) life jacket
Although independent boutiques are temporarily closed — and some retail stalwarts like Neiman Marcus are expected to file for bankruptcy — there’s an opportunity to move inventory by partnering with resale platforms.
The RealReal has seen its inventory spike 30% over the past 6 weeks.
