It is possibly the worst kept secret in retail. That Detroit-based sneaker resale platform StockX is looking to go public is hardly a revelation, given a string of fundraisings that, as of April, left it with a $3.8 billion valuation.
Although a new report points to the potential hiring of bankers (Morgan and Goldman) and a possible, albeit highly conditional, mid-year initial public offering (IPO) date, the big StockX story is what it says about “Big Resale,” and the growing stable of well-funded publicly traded businesses that are playing in this pond.
Whether it’s RealReal, Rent the Runway, ThredUp, Poshmark or eBay, the appetite for secondhand goods, from both consumers and investors, is on the rise.
In fact, alongside generally strong demand globally for streetwear and related fashion categories, the resale trend, particularly as it pertains to footwear, has posted a parade of records. For example, in late November, StockX said buyers and sellers from over 150 different countries logged on to its site over the four-day Black Friday to Cyber Monday weekend, in what it said was proof that its business model and “culture commerce” were truly global phenomena with the platform setting “single-day records for trades, total buyers, and total sellers.”
“In a year defined by supply chain challenges, we made big investments in our global network,” StockX CEO Scott Cutler said at the time. “Together with our never-out-of-stock model, this afforded customers access to more than 150,000 products that often aren’t stocked on the shelves of traditional retailers,” he added, noting that the platform processed “more than a trade every second” on Black Friday.
Old Old vs New Old
To be sure, the concept of digital resale is as old as the internet itself, with mega-players like eBay, which was founded in 1995 seeing its pandemic-era market value more than double to its present $40 billion level.
While eBay has had more than its shares of challenges, the company continues to retool and reinvent itself to take on new entrants to the reCommerce space as they emerge. Just last month, the San Jose-based marketplace operator announced that it was retooling its sneaker resale business, via the addition of interactive, 360-degree imaging capability, a new sneaker authentication service that combats counterfeits, via the acquisition of Sneaker Con.
The rise of resale startups like StockX and others is being closely scrutinized by manufacturers, who are gradually warming up to the idea that there’s space in their portfolios for gently used items to exist alongside their new merchandise. As a result, brands including Nike and Lululemon have entered reCommerce in the past year on their own, but continue to struggle to find the right balance between selling old and new and also answering the growing consumer call for sustainability.
“We’re changing our approach,” Nike Chief Sustainability Officer Noel Kinder blogged last spring as the company unveiled its Nike Refurbished initiative as part of a broader 5-year plan. “Across the company, our teams are pulling together with surgical focus on our biggest challenges — and our biggest opportunities: sustainable materials, renewable energy, and energy efficiency,” Kinder added.
In the meantime, as its core sneaker resale platform continues to set records, StockX has also been busy ramping up other resale verticals ahead of its potential IPO, including Streetwear, Electronics, Trading Cards, Collectibles, Handbags and Watches.