LVMH Luxury Ventures is backing Stadium Goods.
While details of the deal were not disclosed, the partnership will help expand Stadium Goods, the streetwear and sneaker resale store and e-commerce site that’s grown quickly over the past two years.
Jed Stiller and John McPheters founded StadiumGoods.com and opened its SoHo shop in October 2015. Stiller previously worked in hospitality and was a partner and angel investor in Swarm Mobile, which was acquired by Groupon in 2014. McPheters spent 10 years working in e-commerce and ran social media and brand communications for clients at Team Epiphany, a marketing agency.
Stadium Goods isn’t the only sneaker reselling platform, but two years after launching, the founders have been able to differentiate their business by working with Amazon, eBay, Zalando and Alibaba to extend its reach beyond its e-commerce site and the space it occupies on Howard Street. They’ve participated in Alibaba’s annual 11.11 event, the so-called Singles’ Day, for the past two years and it’s ended up being Stadium Goods’ biggest sales day each year.
McPheters said Stadium Goods, which has raised $5.6 million prior to LVMH Luxury Ventures being involved, was on track to do over $100 million in gross merchandise volume in 2017. E-commerce makes up 90 percent of sales, but the store it opened in SoHo, on a block that’s become its own shopping hub — Palace opened up next door and a Rick Owens store moved down the block — has emerged as a key marketing tool. Complex tapes many of its “Sneaker Shopping” episodes out of the shop, which McPheters has called a big awareness-driver.
“A good reason for us being able to grow so consistently is the storytelling we are able to do from our location,” McPheters previously told WWD. “It helps people know who we are and who they are interacting with.”
Stadium Goods holds inventory, which is another facet that distinguishes the business from its competitors. Stiller said this builds trust with consumers because the product is authenticated prior to being listed, and it allows them to deliver product in as little as one business day. The founders recently launched an app that will feature location services, push notifications and early access to sales.
The founders, who currently sell sneakers and apparel on the site from brands including Supreme, Palace, Adidas and Nike, previously told WWD they considered doing something in the merch space and opening a second location, but they didn’t reveal where that would be.
LVMH Luxury Ventures launched in 2017 with the mission to acquire minority stakes in emerging brands within the luxury space.