The present invention is generally directed to a vertically expanding tote bag or purse, formed from a substantially rigid bottom panel, an internal telescopic support connected to the bottom panel, a collapsible pocket connected to the solid bottom panel and the internal support, the collapsible pocket disposed such that it creates a collapsible cavity or pocket within the collapsible material when the internal support is telescoped into an extended position; and a non-collapsible pocket formed from non-collapsible side walls that form a cavity or pocket, the non-collapsible pocket attached to the internal support.