On the heels of going public in September, UK-based online luxury marketplace Farfetch is expanding its portfolio to make room for more sneakers by acquiring online footwear and streetwear resale marketplace Stadium Goods for $250 million. Stadium Goods has participated in the Farfetch marketplace since April 2018 but will fully integrate its inventory into the marketplace following the acquisition.
Stadium Goods will continue to operate as a standalone brand on the Farfetch platform and will be led by its existing management team.
Sneakers are the fastest-growing category at Farfetch, according to CEO and Co-Founder José Neves. But the luxury marketplace is broadening its horizons in the U.S. by zeroing in on streetwear that appeals to younger, affluent consumers. While streetwear might not typically fit the mold of other luxury items and apparel, Farfetch sees a $70 billion opportunity within the premium sportswear market, citing Bain Capital’s 2018 Worldwide Luxury Market Monitor.
“The lines are blurring: it’s pretty clear that luxury customers are very, very excited about streetwear and sneakers and streetwear guys are very excited about luxury,” Stadium Goods Co-Founder Jed Stiller told GQ.
This isn’t the first time a luxury brand has seen promise in the Stadium Goods value proposition. LVMH Luxury Ventures became a minority investor in the company in February 2018.