Luxury Garage Sale the designer resale company has raised another $5M to expand their brick and mortar stores. Brigid Sweeney at Chicago Business wrote a great article on where the investment is coming from and what they plan on using it for.
Luxury Garage Sale, an “omnichannel” consignment shop with an emphasis on designer goods, has received $5 million in Series A funding that will allow the company to expand its bricks-and-mortar stores and improve its e-commerce platform.
The investment was led by Data Point Capital, a Boston-based fund created by Shoebuy.com founder Scott Savitz. Chicago Ventures and Trunk Club CEO Brian Spaly, both of whom backed Luxury Garage Sale in a $1.5 million seed round last year, again contributed. New investors include Chicago’s Hyde Park Angels and Pallasite Ventures of Vancouver, British Columbia.
Savitz, who sold Shoebuy to Barry Diller’s IAC for an undisclosed sum in 2006, will join the Luxury Garage Sale board. Spaly, who sold Trunk Club to Nordstrom for a reported $350 million in 2014, is already a board member.
“We search for remarkable companies that are achieving great scale,” Savitz said in a statement. “Whether it is new customer acquisition, repeat buying, lifetime value, customer satisfaction, unit economics or consigner engagement, you name it, LGS has clearly proven they make the grade.”
In an interview, Luxury Garage Sale co-founder Lindsay Segal said the money will allow her company to bring its technology platform in-house, hire new stylists and, “most importantly, open new locations.”
Segal, 33, said the company is nearing long-term leases in two new cities, but declined to give specifics.
Luxury Garage Sale currently operates three permanent stores: its original location on Wells Street in Old Town which opened in 2012, a fifth-floor boutique in the 900 N. Michigan Shops and a store in Dallas that opened in 2015.
STORES MAKE THE DIFFERENCE
The company, which Segal launched with childhood friend Brielle Buchberg, 32, in 2011 as a series of pop-up stores, continues to rely on temporary locations to familiarize shoppers with the brand. A pop-up shop in Hinsdale that opened in April will run through mid-June. Another in Highland Park is slated to open June 15 and will extend through mid-August. Read more…….
I personally feel like the trends are changing back to traditional brick and mortar stores. Buyers and becoming increasingly discerning when shopping resale websites and with the luxury market seeing a huge uptick in fake merchandise being offered, being able to touch a feel and $2,000 handbag gives your customers another layer of confidence.