Back in May, PYMNTS reported that Foot Locker was planning to utilize concept stores as experimental venues for exploring localization efforts aimed at establishing stronger customer connections. Today, StockX, the resale marketplace renowned for its substantial online sales of sneakers, apparel and collectibles, is taking a similar approach, providing its customers with an opportunity to buy merchandise in a brick-and-mortar store.
In the second week of October, the company is scheduled to launch its very first shopping experience at its drop-off location in New York City.
The recent development signifies a significant departure for StockX, a platform that has traditionally been focused on eCommerce. To put it in perspective, in 2020 alone, it oversaw transactions totaling $1.8 billion on its online platform.
Although StockX currently operates four physical locations in New York City, London, Tokyo, and Hong Kong, these have predominantly functioned as drop-off centers aimed at expediting item verification and payout procedures for sellers. However, StockX enthusiasts had expressed their desire for a broader and more immersive experience, as President and cofounder Greg Schwartz observed.
Approximately seven years ago, StockX made its market debut with a primary focus on sneakers. During that period, buyers were presented with the choice to either bid on items or acquire them at the lowest price indicated by sellers, with StockX generating income through transaction fees imposed on sellers.
Currently, StockX has significantly broadened its product offering, spanning an extensive array of categories, which now includes handbags, gaming consoles, timepieces, action figures and collectible trading cards.
The company has cultivated a robust and loyal following among both collectors and investors. In the early months of 2021, StockX successfully obtained $255 million in funding, valuing the company at $3.8 billion. Furthermore, in 2022, StockX attained unprecedented revenue figures, fueled by the burgeoning interest in streetwear culture.
Today, StockX showcases an extensive array of premium brands, prominently featuring renowned names like Hoka and Adidas. As they venture into the realm of physical retail, StockX is reportedly dedicated to carefully curating items, drawing from insights provided by their in-house retail, fulfillment and merchandising teams. Furthermore, StockX’s store will prioritize offering products in multiple sizes, aiming to cater to a wider audience and guaranteeing the highest level of accessibility.
In reaction to investors’ perception of department stores as outdated and uninspiring, Macy’s disclosed its plans to extend its reach beyond the conventional mall environment.
The company has since directed its efforts toward attracting customers in vibrant shopping centers and fast-expanding suburban areas while distancing itself from declining malls. Within these smaller, more strategic locations, Macy’s is committed to crafting a curated shopping experience by showcasing a thoughtfully chosen selection of popular brands. The displays are consistently refreshed to keep them current and appealing to customers.
In a CNBC interview conducted in March, CEO Jeff Gennette conveyed his positive perspective regarding Macy’s off-mall stores, expressing a high degree of confidence in their capacity for future growth. He articulated that the company intends to embark on a more assertive expansion of this concept, commencing in 2024 and extending into the subsequent years.