Why PacSun Is Getting Into the Booming Sneaker Resale Business
Update: Oct. 28, 2021 at 1:15 p.m. ET
PacSun delivered its second PS Reserve drop today, which features limited quantities of today’s most hyped and sought-after sneakers from Nike, Jordan Brand, Adidas and others.
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“We knew our customer would be drawn to PS Reserve considering they really gravitate towards footwear, and it was incredible to see their response to the initial launch,” PacSun VP of men’s merchandising Richard Cox said in a statement. “The first drop sold out in the first 24 hours, and we are excited to present even more styles, like Dunks, Jordan 1s and Yeezys, along with a complement of apparel, for the second drop.”
This drop also marks the first time that PacSun will have PS Reserve inventory available to consumers in-store at its SoHo Flagship in New York City and at the Cerritos, Calif., location. To reveal the drop, PS Reserve held a livestream event at the Cerritos store today at 12 p.m. ET with Michael “Miki” Guerra, founder and owner of The Magnolia Park.
What We Originally Reported on July 7, 2021
PacSun is getting involved in the multi billion dollar 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 Pacsun.com/ps-reserve, consumers can expect to see looks from brands including Jordan Brand, Yeezy, Supreme, Bape, Kaws and others.
PacSun said the looks 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.
“Footwear is very important to the PacSun customer,” Richard Cox, PacSun VP of men’s merchandising, said in a statement. “Based on that, we know that we need to deliver a compelling footwear assortment in addition to our great apparel offering. The resell market has really changed the footwear industry, and we had been thinking about how to best participate in that evolution through our own lens, in an elevated and authentic way.”
PacSun has tapped Michael Guerra, founder and owner of The Magnolia Park, to guide it through the process and help authenticate product.
“We constantly would see an outfit from PacSun and then completed with footwear or accessories from Mag Park. The introduction of PS Reserve will now eliminate the need to go somewhere else to get the complete outfit,” Guerra said in a statement.
PacSun is entering the resale business at a time when market leaders are seeing their profiles rise. GOAT Group, for instance, 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.
The company is making the move into resale after a big 2020. PacSun recorded sales of $700 million last year, an increase from the year prior, despite COVID-19 decimating most of retail. Also, Piper Sandler in April named the company the No. 3 favorite apparel brand for teens, moving ahead of both Lululemon and Adidas.
Last month, PacSun co-CEO Alfred Chang explained to FN how the retailer would boost its business post-COVID, which includes doubling down on e-commerce, expanding its social media presence, supporting consumers and communities through its philanthropic initiatives and forging key partnerships.
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