Rebag announces it will open its sixth retail store in the U.S., following the recent $25 million Series C funding announcement.
In February, Rebag upped its total financial backing to $52 million, with the $25 million Series C funding round led by investment firms: Novator, General Catalyst and FJ Labs, as previously reported in WWD.
Rebag aims to challenge the luxury consignment model, whereby sellers wait on items. Instead, Rebag buys bags outright offering payment within one to two business days online or under an hour in store. The resale handbag market is poised for growth. Competitors, ThredUp and The RealReal operate on consignment models, with ThredUp reporting the designer handbags with “best resale value” by price in its latest report” to include: Burberry, Alexander McQueen and Versace, names carried by all companies. The fight for market share will necessitate physical retail for resellers.
The store will be the third location in California, opening in the Westfield Santa Anita mall. Rebag also operates two stores in Los Angeles — in Melrose Place and Beverly Hills. Listening to consumer demand, Charles Gorra, chief executive officer and founder of Rebag, is excited to “expand our reach outside of the immediate Los Angeles area,” in a retail footprint where foot traffic is highly anticipated and the conscious consumer already exists.
The Santa Anita store is adjacent to Nordstrom, Michael Kors and Swarovski, and marks the second Rebag location in a Westfield property. It will parallel other stores with its signature pastel yellow signage, Hermès Birkin Wall and the “Rebag bar,” where customers can sell, exchange bags for up to 70 percent of original value if returned within six months, under the Rebag Infinity program or buy new, used bags.
Rebag researches potential brick-and-mortar locations by looking at data from online transactions. Where there is “high online adoption,” Rebag aims to expand to 30 locations including “both stand-alone stores, as well as a continued presence in major luxury malls,” according to a press statement. As previously reported, the latest funding round is advancing physical retail in the U.S., with other prospective cities including Chicago and San Francisco.
“The goal is to operate a footprint of around 30 stores within the next two, three years,” said Gorra, as previously reported in WWD. While luxury resale shoppers in New York and California maintain the access to physical retail with Rebag, the brand relies on its mobile app and web site to accommodate its conclusive customer base.