Farfetch is betting big on sneakers. The newly publicly listed e-commerce site announced on Wednesday that in an effort to expand its offerings in “the premier sneaker and streetwear category,” it has acquired Stadium Goods for $250 million. The acquisition of Stadium Goods – which was founded in 2015 by Jed Stiller and John McPheters and which describes itself as “a premium sneaker + streetwear marketplace selling only the most sought after footwear, apparel and other hard-to-find items on behalf of our sellers” – is the latest development in the increasingly buzzy luxury resale space.
The Stadium Goods, Farfetch deal comes less than a year after LVMH’s Luxury Ventures – an LVMH Moët Hennessy Louis Vuitton-owned fund dedicated to investing in small, promising fashion, cosmetics or accessories companies – entered into a “partnership” (financial details of the transaction were not disclosed) with the New York-based consignment sneaker company to help fund future expansion in the budding ecosystem of second-hand luxury goods sales.
Farfetch founder José Neves stated on Wednesday, “We are thrilled to welcome Stadium Goods to the Farfetch family. Having already collaborated with its exceptional team via the Farfetch marketplace, it is clear that there is a great opportunity for our two companies.” Neves further revealed that he is “confident that we can help Stadium Goods grow its international presence for sneakerheads around the world.”
John McPheters of Stadium Goods cited “Farfetch’s best-in-class cross-border logistics and technology, as well as their luxury prowess, scale and customer base,” as part of the company’s appeal.
Stadium Goods – which has “enjoyed strong sales growth” since its joined Farfetch’s e-commerce platform in April – is part of a larger luxury re-sale market, one that is estimated to be worth a whopping $25 billion. Growth in this sector comes thanks, in large part, to dedicated web platforms, whether it be The RealReal or Stadium Goods, that are drawing a younger clientele to more accessible luxury goods, whether it be Chanel handbags, Gucci dresses, Rolex watches, or Supreme hoodies, which might otherwise be either too pricey at retail for younger consumers or largely inaccessible via the web.
The deal is the latest in a string of resale-related acquisitions and significant fund raising, with Richemont, for instance, snapping up second-hand watch selling platform Watchfinder in June for an undisclosed sum to supplement the new watches being put forth by the brands under its ownership umbrella, such as Cartier, Baume & Merier, Jaeger-LeCoultre, IWC Schaffhausen, Officine Panerai, and Piaget, among others. Analysts stated at the time of the news that the purchase is the latest sign that luxury power players are looking to tap into a fast-growing market for pre-owned products.
As for venture capital, StockX, the Detroit-based sneaker resale market, announced in September that it had raised $44 million in funding from investors, including Salesforce chairman (and now Time Magazine owner) Marc Benioff. Just before that, Julie Wainwright’s The RealReal revealed that it had brought in $115 million in a Series G financing round this summer, bringing The RealReal’s funding to a total of $288 million. Still yet, Grailed, the curated menswear re-sale site, took on a $15 million investment in June, in a Series A round led by Index Ventures, bringing the company’s total funding to about $20 million.