PYMNTS-MonitorEdge-May-2024

Sneaker Startup Stadium Goods In $4.6M Series A

Well, when you sell Yeezys, you’re bound to get noticed.

Stadium Goods, a streetwear and sneaker consignment startup, first opened up shop in New York City’s major shopping district SoHo back in 2015. Since then, it has expanded its online retail presence in a big way, starting its own online marketplace and bringing its brand presence to eBay and China’s T-mall.

Just recently, Stadium Goods raised $4.6 million in Series A venture funding led by Forerunner Ventures along with the Chernan Group and Mark Cuban, among others. Both Stadium Goods and its investors both reportedly seen an opportunity for the startup that extends beyond the reused footwear and apparel markets — including the potential to develop and sell software-as-a-service (SaaS) solutions to the broader retail industry.

Forerunner Ventures founder Kristen Green was quoted as saying, “Retail is undergoing a massive change, and there is a chance for new leaders to emerge and older brands to reinvent themselves. One thing that is unique to Stadium Goods is that they have a consolidated view of everything that is going on in the footwear ecosystem, because they are connecting with customers, both buyers and sellers of sneakers, in so many different places. In any enthusiast category, from the customer and seller perspective, you need people who are authentic and particularly credible.”

Stadium Goods says they plan to use the latest funding to hire additional staff and to put out strategic advertising and marketing campaigns. Additionally, Stadium Goods could soon have another store on the way, though no location has been confirmed as of now.

And even without future ventures into SaaS or supplying inventory to other sneaker upstarts, retail resale can mean big business on its own. Research from the NDP Group shows that, excluding antiques and Goodwill stores, the resale industry in the U.S. generates annual sales of $9.42 billion annually. In footwear, NDP research found that new and used shoes generated $17.2 billion in sales just in the U.S.

PYMNTS-MonitorEdge-May-2024