PacSun to Enter the Sneaker Resale Business
Apparel retail chain PacSun has launched PS Reserve, its debut resale initiative that it said will primarily focus on footwear but also include apparel, accessories and more. Through a PS Reserve landing page on the PacSun website, consumers can expect to see looks from brands including Jordan Brand, Yeezy, Supreme, Bape, Kaws and others. PacSun said the products are part of its own inventory, which the retailer said will allow for orders to be fulfilled quicker than services with “a middleman authentication process” and provide a rapid direct-to-consumer experience. PacSun has tapped Michael Guerra, founder and owner of sneaker retailer The Magnolia Park, to guide it through the process and help authenticate product.
Total Retail's Take: The sneaker resale business is a measured bet for PacSun, considering the recent interest in the category from both consumers and investors. For example, GOAT Group revealed late last month that it closed a Series F funding round of $195 million, and with the round its valuation climbed to $3.7 billion — more than double its $1.8 billion valuation following its Series E round in September 2020. And in April, the “stock market of things” StockX announced it concluded a $195 million secondary tender offering and an additional $60 million in Series E-1 primary shares, resulting in a $3.8 billion valuation.
While PacSun isn't going after consumer spending rather than investment dollars, the retailer is trying to build upon the momentum it created last year by testing the resale market. PacSun recorded sales of $700 million last year, an increase from the year prior, despite COVID-19 closing its physical stores for a significant period of time. Considering its primary demographic, Gen Z, and its penchant for high-end sneakers, PacSun is betting that this will be its next win in its strengthening turnaround.