Bloomingdale’s recently announced a partnership with the luxury resale platform Rebag, marking a significant shift in the retail landscape. This collaboration allows Bloomingdale’s, a subsidiary of Macy’s, to diversify its offerings by selling pre-owned luxury handbags, watches, and fine jewelry. Products will be available online and in five select stores, including locations in Short Hills, New Jersey; Boca Raton, Florida; and Los Angeles.

The integration of Rebag’s services offers Bloomingdale’s customers an opportunity not only to purchase high-end secondhand items but also to sell their own pre-loved goods. Rebag simplifies this process by providing quotes and immediate payouts for accepted items. As Jennifer Jones, Bloomingdale’s General Merchandise Manager of Women’s Accessories, noted, this partnership aims to cater to evolving consumer preferences and introduces ultra-luxury brands into the department store’s portfolio.

The resale market is expanding rapidly, driven mainly by millennials and Gen Z, who are increasingly embracing sustainable fashion choices. Major retailers, from Walmart to Neiman Marcus, have entered this space, recognizing its potential for growth and profitability. Rebag itself has recently closed two of its three New York City storefronts, choosing to focus on strategic collaborations with established retailers.

Despite the burgeoning resale market, profitability remains a key challenge. Competitors like The RealReal and Poshmark have faced difficulties in maintaining positive earnings since their public offerings. Nevertheless, Bloomingdale’s partnership with Rebag highlights a proactive approach to meet consumer demands while navigating the complexities of the modern retail environment. As the landscape continues to shift, this alliance could redefine luxury shopping by merging traditional retail with innovative resale solutions.