Sneaker resale marketplace Impossible Kicks is taking a more analog approach to sneaker resale.
In a world where most valuable hype beast-esque kicks are sold on platforms like StockX, Impossible Kicks has been focused on opening stores over the last two years. It now has over two dozen locations in ten states, with plans to open seven more this year. But it also is now expanding into online, trying to compete more directly with its digital counterparts. So far, the business has been working: the company brought in around $50 million last year and expects double that in 2023.
According to co-founder and CEO John Mocadlo, Impossible Kicks' success has been in the way its standardized operations. "We've been extremely successful with it just because we set up all of our sneaker stores kind of like a car dealership," he said on the Modern Retail Podcast. That is, "we train the associates like essentially salesmen from a car dealership."
There's a lot more to it than that, but that's the underlying ethos of what helped the company grow. Now, Impossible Kicks has big plans to expand its digital presence -- which currently represents about 10% of its revenue -- as well as go beyond footwear and apparel into luxury watches.
One of the things that helped Mocadlo grow his company was partnering with the right people and being in the right place at the right time. His business was predicated on brick-and-mortar retail, and that takes a lot of capital to do well. "When we realized -- hey, we're going to be the alpha in brick and mortar' -- we knew that we had to A, raise money and B, move as fast as possible," he said.
Now, the company has raised millions of dollars and is investing that into expansion. That being said, Mocadlo added that "on a consolidated basis, the box retail is extremely profitable as a whole."
But even as store sales continue to grow, Impossible Kicks is trying to make sure it figures out the right formula for online. That space is much more crowded and filled with big names. "There are some fantastic companies that are DTC with resale -- StockX, Goat, Stadium Goods are all fantastic companies," he said.
But the one thing he doesn't want to do is grow to big and ruin the brand cachet the company has thus far built. "We've launched [online] very slow, because there's a lot of fraud in our field of work," Mocadlo said.