Among the off-pricers, Saks Off 5th wants to dominate the resale sector.
The company has built a network of sources supplying used fashion since 2020, when it first partnered with LXR & Co., for used vintage handbags and accessories luxury brands such as Prada, Celine, Gucci and Louis Vuitton.
In July, Saks Off 5th partnered with Rent the Runway to sell pre-owned women’s clothing from the ready-to-wear assortment and last month Saks Off 5th launched with 2 Authenticators, a company specializing in the resale of luxury handbags and small leather goods.
With new and used products combined, more than 1,000 brands have been introduced in the past two years, the company said.
These partnerships allow Saks Off 5th to introduce brands it has not previously sold, expand selections from those already offered, tap into a rapidly growing segment of customers seeking more value, and support the circular economy.
“In our quest for market share entirely in the luxury off-price space, we have grown the core business in off-price, but we see resale as a huge opportunity,” said Paige Thomas, president and CEO of the direction of Saks. Off 5th, told WWD in an exclusive interview. “Resale offers a real value proposition for Saks Off’s 5th customers. They are committed to resale, and overall 85% of respondents to a survey we conducted are comfortable buying resale from Off 5th. »
Saks Off 5e surveyed its advisor group, which includes more than 5,000 engaged customers, via email.
“We’re still focused on luxury,” Saks Off 5th Chief Merchant Molly Taylor said, though she added that Rent the Runway and Reflaunt have contemporary labels that, while still upscale, would not be. not necessarily considered genuine designer brands. “Reflaunt is contemporary but leads with the designer,” Taylor said.
“Customer response to our new partners in the used vehicle space has exceeded expectations,” Taylor said.
Asked what shoppers gravitate towards most in second-hand items, Taylor said: “We always see the gravitation towards handbags and small leather goods, but in general they react to fashion, to something unique that they can’t find anywhere else.. Some of the best sellers have been at Rent the Runway of more cutting-edge contemporary brands. Solace London (from Rent the Runway) is a very sharp brand. had the sale of any brand when we launched Reflaunt. It sold out almost entirely by the piece. With Reflaunt, dresses have been the best-selling category so far,” Taylor said.
To shine a light on used products, the Off 5th website offers navigation in its upper right corner with the option to shop used items by brand, category, or by Rent the Runway. If you shop by category or brand, used items will appear in these tables.
“We’re still early days in terms of resale penetration across our business,” Taylor said. On the Off 5th website on Monday there were approximately 1,100 used items for sale, although the number of items changes very quickly given the speed at which Off 5th buys and sells goods, and the fluid and opportunistic nature of the off-price pattern.
According to Thomas, “Molly and her team are driving aggressive merchandise expansion” for new and used products, getting hundreds of new items every week. Used merchandise is sold on Saksoff5th.com, with the exception of LXR merchandise carried at over 20 Off 5th stores.
Executives said they want to expand pre-owned selections in the categories offered and continue to have conversations with other vendors in the industry.
“The launch of our partnership with Saks Off 5th is a major step in Reflaunt’s mission to drive the growth of the fashion industry with the resale of products that are already in the market and still have tremendous value,” Reflaunt co-founder and CEO Stephanie Crespin said in a statement.
According to the Boston Consulting Group, the resale market is growing two to three times faster than the retail sector, and by 2025 it will represent a global business of $50 billion.