Farfetch, the luxury e-commerce marketplace, today announced it had acquired New York City-based sneaker consignment shop Stadium Goods to the tune of $250 million.
Founded in 2015 by John McPheters and Jed Stiller, Stadium Goods has quickly become a preferred sneaker destination. Farfetch, similar in that they hold no inventory and function a lot like Stadium Goods, first partnered with the company this past May. Farfetch offered a portion of the Stadium Goods inventory on its e-commerce platform.
“We are thrilled to welcome Stadium Goods to the Farfetch family. Having already collaborated with its exceptional team via the Farfetch marketplace, it is clear that there is a great opportunity for our two companies to leverage each other’s strengths to go after a larger share of an exciting and fast-growing segment of luxury fashion,” said Farfetch Founder and CEO, José Neves, in an official press release earlier this morning.
Farfetch, after going public on the New York Stock Exchange this past September, is looking to cement itself as a much larger player in the streetwear and sneaker industry — a market that, in 2017, was worth upwards to $70 billion. By partnering with Stadium Goods, and offering the full weight of its inventory on Farfetch, they’ll be quickly thrust into the globalization of those aforementioned industries.
Stadium Goods, too, will reap the benefits of this massive cash injection. They’ll be able to expand in all directions. Even more impressive, they’ll continue to operate independently while utilizing its budding parent companies logistics and streamlined delivery capabilities.
“Myself, Jed and our entire team couldn’t be more excited to join the Farfetch family as we enter the next stage in our evolution as a global brand and product offering,” spoke Stadium Goods Co-Founder and Co-CEO John McPheters. “By leveraging Farfetch’s best-in-class cross-border logistics and technology, as well as their luxury prowess, scale and customer base, we will be in a prime position to capitalize on the massive international demand for sneakers and streetwear.”
A large factor surrounding this acquisition and both companies’ subsequent success is conquering the growing luxury market in China. Streetwear and sneaker culture in Asia is wildly expansive. Stadium Goods was already working in that region by selling select sneakers on JD.com.
Stadium Goods is Farfetch’s first acquisition since they purchased CuriosityChina, a marketing agency, back in July. Prior to that, they’d acquired London boutique, Browns, in 2015.
Farfetch’s acquisition of Stadium Goods is expected to be complete early next year.
Source: PRNewsWire & BOF
