Luxury Resale

St. Louis Leads the Way

Written by Lou Ann Wilcox

I was 28 years old the first time I saw a woven Bottega Veneta handbag and within 30 seconds I vowed to own one. The design - so complex. The leather - so soft. The statement it made - so stylish. It took quite a few years to find a Bottega Veneta bag I could afford. I eventually found the dainty orange leather woven number, which I now dangle from my wrist with pride, at The Vault Luxury Resale. Buyers and sellers of authentic luxury goods, The Vault is a multimillion-dollar resale business on Brentwood Blvd. According to Diana Ford, director of luxury goods and gatherings at The Vault, the sales of handbags, their No. 1 selling item, as well as apparel and shoes, have increased substantially in the past two years.

Photo courtesy of The Resale Shop.

Luxury resale has taken off nationwide for a plethora of reasons. Gen Z and millennials, interested in saving the planet and ethical sourcing, or shoppers experiencing supply chain delays, have provided much of the motivation. Affordability is a component but not a primary driver. The quantity and quality of available luxury goods for resale is at an all-time high due to well-dressed women who vowed to clean their closets during the pandemic doing just that, donating or selling their high-end clothing and accessories. Online resellers are facilitating the growth of the preowned market well beyond what brick-and-mortar stores ever did before. And most important, the stigma of buying, using, and wearing resale items is eroding or gone. There is a new view of how valuable some of the resale products are.

We’re not talking vintage here: we’re talking about luxury items originally purchased in the past three years. Vintage items are generally those made between 25 and 100 years ago and clearly reflect the styles and trends of the era they represent.

“It’s chic to repeat,” says Susan Sherman, co-founder of the St. Louis Fashion Fund and MERCH, a pop-up trunk show business based in St. Louis. A champion shopper and one of the metro area’s fashion doyennes, Sherman says she’s definitely seen resale evolve in the past few years. “The thrill of the hunt for well-made and beautiful iconic pieces is part of it,” she says. “Who doesn’t love finding a great piece at a bargain price? It’s a very interesting form of entertainment. But it’s also about circular fashion - repairing the reputation of the fashion industry as it relates to sustainability and sourcing. It’s generational. My 28-year-old daughter, and she’s not alone, wants to know where and how her clothing is being made, are the workers earning a fair wage, is sustainability part of the process - all to avoid adding more ‘fashion waste’ to landfills.”

An August 2021 Verified Market Research report (a global datagathering resource), says the luxury resale market in the U.S. was valued at $16.23 billion in 2020 and is projected to reach $68.53 billion by 2028, growing at a compound annual growth rate of 15.53% from 2021 to 2028. This includes antiques and artwork as well as apparel and accessories. There are major discrepancies from source to source, however. According to Luxe Digital, luxury resale is currently valued at $24 billion and is growing four times faster than the primary luxury market, at 12% per year versus 3%. It is important to note that resale doesn’t necessarily mean used. A lot of resellers sell items that are new but currently scarce. Without a doubt however is the fact that more people of all ages are shopping luxury resale.

In January, I had a chance to talk luxury resale with Jessica Duneman, director of retail operations at The National Council of Jewish Women St. Louis’s The Resale Shop (NCJWSTL), located on Lindbergh Blvd. in Creve Coeur, as well as Ford from The Vault. Both have a great story to tell about luxury resale in St. Louis, positioning our city as a source for resale luxury goods nationwide.

The Vault opened 30 years ago as The Women’s Closet Exchange in south St. Louis County. The founder, Sue McCarthy, who is Ford’s mother, was the star of the Style Network’s reality series, Resale Royalty, which was produced by celebrity stylist Rachel Zoe and aired in 2013. Another daughter, Laura Maurice, serves as chief curator. They moved eight years ago to their 7,000 sq. ft. dream store in Brentwood and changed their name to The Vault.

Explains Ford, “The Vault buys luxury items outright. That’s rare in the luxury resale business - most consign. We see about 1,000 items per day. Of those 1,000 pieces, we may only purchase 400-600 of them - nearly all in-season. Because we’ve got skin in the game, we only buy what we know will sell.” Another daughter, Laura Maurice, serves as chief curator. She acknowledges that this involves managing people’s expectations. “We encourage people to bring in whatever they have because you just never know.” See page 32 for more on selling to The Vault.

While The Vault pays for items, The Resale Shop, a 501(c)(3), accepts only donations. Says Duneman, “Our rule of thumb - if it is in nice, clean, usable condition or if you’d lend it to a friend; we can use it.” They take in about 10,000 items per month including off-season clothing. “Our team of staff and volunteers sort them into categories including men’s, kid’s, shoes, jewelry, and housewares. Only the best pieces make it to our sales floor. Items that cannot be used are either passed on to other local charities or sold to a St. Louis-based recycling center. The mission of The Resale Shop is to provide funding for the many programs of the NCJWSTL,” Duneman continues. “Many people are happy to support us knowing that our programs are local.”

Higher-end items are set aside throughout the year for The Resale Shop’s annual Couturier sale, a five-day fundraising event held in the fall for the past 57 years. While the shop raises funds all year long, the Couturier sale raises a lot of money in a short amount of time as well as generates media attention (some national) and attracts shoppers who may not ordinarily come into the store.

Both women agree that the current pandemic has accelerated resale buying at all levels and acknowledge the quality of the inventory they now carry is the best ever due to people decluttering when they were staying home. Both stores had so much inventory they had to rent offsite storage to accommodate it. Ford notes that their mix has changed. “We now have a lot more floor space devoted to activewear, and we are buying designer sneakers - can’t keep them in the store. People are no longer wearing high heels, so we don’t carry as many. Same for formalwear, although dresses are coming back. While designer handbags are the top seller, dresses and jewelry come in second and third.”

At The Resale Shop, blazers are flying out the door. “With everyone on Zoom, people are looking for nice tops and jackets,” says Duneman. Besides the luxury items women bring into the store to sell, staff members from The Vault regularly travel to New York, Los Angeles, Nashville, and other cities for iconic finds in the closets of wealthy and well-known women. In addition, other sellers with fabulous closets find them through word-of-mouth. Most of the items have been worn or used only once or twice. As Ford explains, “With social media, there’s a record of who wore what when, so items are out of the rotation faster for those individuals. That’s to our benefit although we think it is chic to repeat!”

Susan Katzman, immediate past president of the NCJWSTL, who has been involved with The Resale Shop for more than 35 years, explains that pre-COVID, their membership was their core donation group. “Ten years ago, we didn’t have younger shoppers because we had no clothes for that demographic. We have found that younger shoppers are not as apt to donate - they want to try to sell first - but it is happening. We’re getting more clothing a younger shopper would wear and we are seeing younger shoppers in return. Our age range is much broader now.” Duneman elaborates, “During the pandemic people were looking for anyone to take their stuff. We were introduced in a positive way to lots of new donors. We have transitioned many of those people into regular donors and shoppers.”

Signs on Lindbergh Blvd. promote The Resale Shop’s Couturier sale. Photo by Philip Deitch

“Gen Z and millennials are loud and proud about shopping resale,” says Ford. “We never kissed and told the identity of our customers - we still don’t. But this new generation does not care, which is good for our industry. Now we have a selfie wall in the dressing room and customers can post on social media as they try on items, tagging The Vault.”

Both stores consider themselves destinations and have shoppers from nearly all local zip codes. While most shoppers at The Vault are seeking labels from the better department stores and boutiques, Ford notes that everyone loves a good bargain. Says Duneman, “We have shoppers who come here because they need to. College kids shopping for business attire has always been a large audience. We have firefighters, police, school administrators, and others who are looking for a sharp suit and don’t want to pay full retail, for example. And plenty of people come here for fun or because they want to support our mission. From here, they often continue down the road to Plaza Frontenac.”

The ability to sell online has been a game-changer for The Vault and The Resale Shop. Prior to the pandemic, The Vault had an information-only website, was selling through Facebook Live once per week, and posting items on Instagram. When the store shut down temporarily in 2020, they started doing it every day. Now they’re hosting shows five days per week. They also began selling via their website. “COVID forced us to do what we should have been doing all along. Within six months it took off and is the best thing that’s happened to us,” Ford says. “People browse the entire site - they look at dresses, jewelry, and shoes - not just handbags. Today we shipped 18 packages across the country. It has created a new revenue stream for us and given us a lot more visibility.”

Brand-name jewelry displayed in cases at The Vault. Photo courtesy of The Vault.

The Resale Shop launched its e-commerce initiative in April 2021. “We’re finding our way - identifying the right shoppers for our site,” says Resale Marketing Manager Yolonda Curtin. “It was on our wish list prior to the pandemic but that accelerated it.” E-commerce items are separate from items sold in the store. Curtin, Duneman, and the store’s donation center manager curate what goes on the website. It is promoted via social media and email blasts. “We put a lot of care into the selection of the items, their descriptions and photos. This has helped broaden our reach and has resulted in more and better donations,” says Curtin.

Unknown to me before writing this story: The Vault and The Resale Shop have a symbiotic relationship. “If we do not buy the items of people who come to our store, we give them the opportunity to donate them to several charities, one of them being the NCJWSTL,” says Ford. “The NCJWSTL picks up here weekly. We love what they do for women and children in our community, and it makes sense to partner with them.”

While they are a for-profit entity, Ford notes that part of their motivation for moving to Brentwood was to have enough space to host charity events. “We have raised money for or given about $700,000 to various charities to date - including Our Lady’s Inn, YWCA, Beyond Housing, Boys & Girls Clubs, The American Cancer Society - giving 10-20% of sales during the events back to the charity.” Recently, thru their handbag initiative, The Vault donated 28 handbags to Our Lady’s Inn, a home for pregnant women who are homeless or on the verge of homelessness, and 31 handbags to Women in Transition, which serves women coming out of the prison system. Each bag was filled with necessities such as deodorant, toothbrush and paste, nail polish, snacks, and an inspirational quote. “We really want to reach $1 million in giving back to our community - that will make a real difference.”

The Resale Shop puts a special tag on items that come from The Vault and Byrd, a consignment store in Ladue, which helps stratify the quality of the item for their customers. “If people call and want to sell their items, we direct them to The Vault or Byrd,” says Duneman. At the end of the consignment period, Byrd’s consignees have the option of donating to The Resale Shop any item they are no longer interested in keeping. “We have great streams of merchandise,” she adds. “The Vault telling their customers how they work with us has helped us for many years. Shopping at The Vault increased our visibility among new secondhand shoppers. If they do well there, then maybe The Resale Shop is okay for them. And they find they can do well here too.”

As background, The Resale Shop has been an integral part of the NCJWSTL for 80 years. Initially, the organization provided a free milk program for kids in school districts and supported immigrants coming to St. Louis to live - giving vouchers and providing clothing. Out of that came the Council Shop, now known as The Resale Shop. As they’ve grown and expanded their reach into the broader community, the shop allowed customers to shop affordably. Now, there are a variety of programs through the store. Project Renewal brings women in need to the store on a Sunday to shop with a personal shopper to pick clothing. They also receive help writing a resume, budgeting, and other skills. Another program supports more than 2,000 children for back-to-school. The NCJWSTL operates 28 “closets” which serve 31 elementary schools for children in need of appropriate clothing, shoes, and more.

Interior of The Resale Shop. Photo courtesy of The Resale Shop.

Retailers are also jumping on the resale bandwagon. In 2017, Stella McCartney became the first luxury brand to promote the consignment of its products on TheRealReal.com, a website for buying and selling luxury items. Anyone consigning Stella McCartney pieces on the resale platform receives a $100 store credit to shop at any of the brand’s retail stores or via its website. Eileen Fisher has Eileen Fisher Renew. Madewell has a program to bring in your old jeans. Neiman Marcus aligns with Fashionphile to bring in used items. Levi’s and Burberry and dozens of others are doing it too. Retailers have come to realize that their customers are resale customers too.

Even celebrities are openly endorsing pre-owned luxury goods. The Kardashians/Jenners, for example, are making a move into the resale market with the launch of Kardashian Kloset. The e-commerce site sells items like clothing, shoes, and handbags that once belonged to celebrity family members.

So where do Ford and Duneman think this is all heading? The Vault is now dabbling in men’s accessories - Hermes ties, Louis Vuitton briefcases, designer sneakers. “We’re doing phenomenal with that,” says Ford. “Men shop differently than women - they tick off the things they need seasonally. They don’t shop ‘just because.’” The Vault’s reputation as a national source of luxury items is confirmed: The Vault is planning to open a second store - location to be announced.

Summarizes Duneman, “The future is bright for resale. I don’t think the trend will turn the other way. There will be no stigma eventually. As the industry evolves and more people recognize the environmental impact of fashion on the planet, it only improves the business model of resale. The only downfall is that if people don’t buy enough new, we won’t have anything to resell!”

WANT TO SELL ITEMS TO THE VAULT? READ THIS.

Handbags on display at The Vault. Photo courtesy of The Vault.

Diana Ford, director of luxury goods and gatherings at The Vault Luxury Resale, encourages those interested in selling their clothing, handbags, jewelry, and shoes to bring them to the store on Brentwood Blvd. in Brentwood. “Buyers are available Monday through Saturday from 10 a.m. until 5 p.m. and no appointment is needed. We have people curating items from all over the country 40 hours per week. They are looking for labels from the better department stores and boutiques, in like-new condition, and are less than three years old.”

“Many people do not understand the outright purchase concept,” she continues. “We only buy what we know will sell and that is constantly changing. And our customer base is national so we aren’t just buying for the St. Louis shopper.” One example is the demand for old nylon Prada bags. “At one point they were selling for about $200, maybe. Now, they’re the bomb; selling for between $1,200 and $1,400. It isn’t only about the brand. It’s about what we know our customers will buy. An item is only worth what someone is willing to pay for it and we really shine in knowing what people will pay.” Ford says they often must educate people. “We try to manage expectations. The buying habits of our customers dictate what we need. It’s not just about what we ‘like.’ We always thank people for what they have brought in. It’s just business - not personal.” She continues, “Sometimes telling people it is lovely but we just can’t use it isn’t enough. We recently saw a young woman who wanted to sell about 15 pairs of low-waisted jeans. Each one probably cost about $200 when purchased and they were all great labels. We told her we were going to pass - that we wanted high-waisted jeans right now. She responded, ‘Yeah, so do I.’ She went from being annoyed to understanding what we do.”

Ford recommends that prospective sellers to The Vault keep in mind a few things:

• Right now, we want activewear and designer sneakers.

• We are always interested in designer handbags and jewelry.

• Our customers buy 25 tops for every one pair of pants we sell so we don’t buy as many bottoms.

• St. Louis is not a walkable city like Chicago or New York where women wear long fur coats for warmth; we typically do not buy them. However, we do sell contemporary mink jackets and do very well with them. We’re always looking for those.

• Vintage, garments made more than 25 years ago and which clearly reflect the style of that era, makes up only about 1% of our inventory. If something amazing comes in, we will buy it - vintage Chanel for example - but we pass on more vintage items than we buy.

• Labels we love: Eileen Fisher, Madewell, Lululemon, Lilly Pulitzer, J.Crew, Alice & Olivia, Vince…as well as Louis Vuitton, Gucci, Chanel, and Prada.