What: Luxury resellers and department stores are rekindling their relationship.

Why it is important: It reflects a shift in consumer behaviour toward sustainability and affordability, driving the growth of the resale market. Department stores, struggling to attract shoppers, see these partnerships as a way to increase foot traffic and diversify revenue. For resellers, it’s an opportunity to expand their reach into physical retail, tapping into a broader audience. Integrating resale into mainstream retail could reshape the luxury and retail industries, making them more accessible and environmentally conscious.

Online resale sites and department stores are now reconnecting after past fluctuating relationships. On August 8, luxury vintage resellers Rebag and Bloomingdale’s announced a partnership to bring 2,500 of Rebag’s designer items to Bloomingdales.com  and select stores. Similarly, London’s Sign of the Times is expanding its collaboration with John Lewis after a successful pop-up, with a permanent space at John Lewis's Peter Jones and an upcoming launch at the Oxford Street flagship. Fashionphile has also been exploring similar avenues, acquiring Two Authenticators Inc. to broaden its market reach through department stores.

The revival of interest in in-person shopping post-COVID has encouraged resellers and department stores to rekindle these partnerships, driven by department stores’ need to attract customers and the rapid growth of the resale market despite its operational challenges. Charles Gorra, Rebag’s CEO, sees this as a logical evolution, similar to trends in other industries like cars and electronics. The timing seems ideal as department stores like Bloomingdale's aim to increase foot traffic and revenue while resellers seek to expand their physical presence.

Resale appeals particularly to younger consumers, especially Gen Z, who are driving the growth of the secondhand market. Bloomingdale's and John Lewis recognize this trend, seeing an opportunity to meet the growing demand for pre-loved items, which also aligns with increasing environmental concerns. With the luxury market experiencing a slowdown, resale offers a more affordable entry point for financially constrained consumers, making partnerships with mid-market stores like Bloomingdale's more logical than with high-end luxury retailers.

Experts warn that these ventures must be carefully managed to ensure they generate additional revenue without taking away from existing sales. The complexity of managing inventory across multiple stores and the risk of overcrowding the market with too many players are potential challenges. Despite these risks, the growing interest in resale from mainstream retailers suggests that more such partnerships are likely in the future.

Why luxury resellers and department stores are rekindling their relationship