Luxury resale platform Luxe Du Jour is planning a major expansion as it looks to raise $13 million CAD in a Series B funding round, aiming to double sales once again and grow its physical retail and digital platform across North America.
CEO Tammy Phan confirmed the upcoming raise in an interview with Retail Insider, citing the company’s ongoing growth trajectory after a successful Series A round.
Luxe Du Jour is a Canadian-born one-stop online luxury boutique where you can shop, sell, consign, rent, restore and accessorize bags.
“We raised our Series A with one of our investors, a billionaire from Vancouver, and ever since that injection of cash, we doubled our sales,” said Phan. “So we know it takes money to make more money.”
The company raised $5 million in its Series A round in 2023. With a proven model and growth strategy, Luxe Du Jour is now pursuing a significantly larger raise.
“If our model is right, why don’t we raise now $10 million, double that what we raised last time, to prove that we can double sales again because we have a new strategy.”
Phan said the company is looking to close the funding round before the summer.
“Everyone’s shopping. Everyone wants to spend money, whether it’s on vacations or it’s on designer bags for vacations.”
Expanding Retail Footprint in Canada and the U.S.
Luxe Du Jour started in 2016 with the intent to bring sustainability to the luxury market. The founders put together their collection of handbags and started selling them on consignment! This was the initial launch of Luxe Du Jour. They found that they could easily re-home their pre-loved handbags by consigning them, recoup their investment, and save on new purchases by choosing to buy pre-loved.
Luxe Du Jour currently operates two head offices—one in Calgary, Alberta, and one in Irvine, California, which opened in March 2023.
“Because of the head office, we realized that we’re missing a huge opportunity when it comes to retail showrooms,” said Phan. “All the clients that are coming to our head offices, they’re like, ‘Oh my gosh, yes, I want to come to the shop, I want to see it, I want to have the whole luxury experience.’”
While Irvine includes a mini showroom within the office, Phan sees major growth potential through full-scale retail.
“Statistically, when you open up a luxury retail storefront, it’s proven with historical data that it typically increases sales by 30 to 40 per cent in that geographical region for companies,” she said.
“Imagine if we do open up one retail showroom in Toronto or Miami or New York, and it ends up increasing sales by 40 per cent. We would have a copy-and-paste model. We would start putting that in major cities.”
Retail Trial in Yorkville
The company recently opened a pop-up in Toronto’s Yorkville area in November 2024 in partnership with luxury fashion boutique CityLux Boutique.
“Customers can drop off their bags to us,” said Phan. “That was a lot of the friction point for our customers all the way in the East Coast. They were like, ‘We want to sell with Luxe Du Jour, but we don’t want to ship our $20,000 bags all across the country.’”
Phan said the pilot has been an early success.
“It’s really proved to be very, very successful and very, very helpful for our clients. So we know we need to open up a permanent location there.”
Investment in Technology and Global Reach
The upcoming investment will also support the company’s digital transformation and global ambitions.
“We’re improving our app and our software,” Phan said. “There’s a lot of new features we need to integrate into our platform so that it can make buying, selling, renting more seamless and open that up easily to the global clientele.”
While remaining tight-lipped on some initiatives, she added, “I just can’t tell you the confidential stuff because it’s not in progress. I can’t have a competitor stealing that yet.”
Growth of Circular Fashion
Phan believes Luxe Du Jour is positioned to benefit from a generational shift in shopping behaviour.
“Pre-owned is growing faster than the brand new luxury market,” she said. “The brand new luxury market is only growing by 3 per cent every year… the pre-owned secondhand market is going at a rate of 11 per cent per year.
“We’re really seeing that the future generation of shoppers—the Millennials, the Gen Zs—they’re the ones that care about shopping sustainably, being a part of circular fashion. ‘Used’ is the new ‘new’ for them.”
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