Modern strategy in luxury secondhand trade: Fashionphile expands into physical retail

Modern strategy in luxury secondhand trade: Fashionphile expands into physical retail

Modern strategy in luxury secondhand trade: Fashionphile expands into physical retail

In the vibrant fashion landscape, Fashionphile, a giant in the field of online luxury goods resale, is bolstering its market presence by opening physical stores and partnering with multi-brand retailers. Founded during the dotcom boom in 1999 by Sarah Davis, who started selling luxury clothes from her own closet on eBay, Fashionphile has significantly evolved. Annually, the platform records sales exceeding $500 million, offering products ranging from Birkins to Rolexes. Since launching its standalone website in 2007, the company has become a benchmark in the industry.

Fashionphile is not new to physical retail. The company began opening stores in California as early as 2006, expanding these locations after receiving a minority investment from department store chain Neiman Marcus in 2019. Most of these stores, however, focused more on serving clients wishing to sell rather than showcasing inventory to buyers, Davis explained.

In 2025, Fashionphile is expanding its commercial footprint, planning to open new locations in key cities such as San Francisco, Dallas, Atlanta, Boca Raton, and Philadelphia, reaching a total of 14 outlets by year’s end. These new stores will focus both on acquiring secondhand items from consumers and selling in high-foot-traffic areas.

Alongside its expansion into physical retail, Fashionphile continues to innovate in e-commerce, where competition is fierce. Companies like The RealReal and Rebag, which have adopted a similar business model, are also increasing their offline presence. For example, Rebag recently opened shop-in-shops within Bloomgindale’s locations and partnered with Walmart to expand the retailer’s offering of pre-owned luxury goods on its online platform.

Innovation in luxury retail is not limited to opening new stores. Today, the success of a physical store is not only measured by legitimizing an online operation or serving as a billboard for a brand; it is a crucial way to differentiate a business in a market where many players offer similar value propositions.

“We’ve learned how to merchandise our stores so they’re not just beautiful museums, but are actually generating significant sales. For us, it’s important to have the right product for the feet walking through the door. That’s how we’ve evolved,” said Davis.

The expansion into physical retail is seen by Fashionphile not just as a business growth strategy, but as a modern approach tailored to today’s consumers’ needs, who seek authentic and personalized experiences when purchasing luxury goods.

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