PARIS — Galeries Lafayette is closing Instantluxe.com, the luxury goods resale site it bought two years ago in a bid to tap into the growing markets for second-hand goods.
The French retailer will also close the two Instantluxe.com corners in Paris at the Galeries Lafayette flagship on Boulevard Haussmann and the BHV Marais department store, a spokeswoman for the brand said. This confirms a report on Fashion Network.
The site employs around 10 people, who will be offered positions within the group, the spokeswoman added. The group declined further comment on the decision.
Instantluxe.com sells certified secondhand luxury products, specializing in leather goods, jewelry, watches and accessories. In November last year, it launched a luxury bag rental service.
At the time of the acquisition in 2016, Galeries Lafayette said: “As consumption habits evolve, the acquisition of Instantluxe.com allows the Galeries Lafayette Group to accelerate the unfolding of its multichannel strategy and to offer its customers new shopping experiences in this fast-growing sector.”
The site is believed to have struggled to attain critical size against more established market players such as Vestiairecollective.com in what is still a nascent segment in France, leading Galeries Lafayette to prioritize other investments.
Nicolas Houzé, chief executive officer of Galeries Lafayette and BHV Marais, said sales at Galeries Lafayette were up between 6 percent and 7 percent in 2017.
But French clothing sales have resumed their decline after a reprieve last year. Spending on ready-to-wear and textiles fell 15 percent in September and are down 3.4 percent in value terms in the first nine months of the year, according to the latest figures from the Institut Français de la Mode.
Among its projects, Galeries Lafayette plans to open a new flagship on Avenue des Champs-Élysées next year. It has five overseas stores in the pipeline: Doha, Kuwait City, Luxembourg, Milan and Shanghai.