RealReal invests in brick-and-mortar stores increasing its revenue, brand

The RealReal is investing smartly and heavily in brick-and-mortar stores this year. After initial success with the company’s New York City location in the sought after area of SoHo, the luxury consignment store is looking to open up more pop-up stores throughout the country, with an upcoming one in Las Vegas Nevada.

The RealReal is an online consignment fashion store that focuses on selling luxury items including clothing for men and women, as well as household items. The San Francisco-based company has tapped into major potential revenue by opening brick-and-mortar stores that are increasing brand awareness throughout the United States.

Founder and CEO of the RealReal, Julie Wainwright, is famous for within startup circles. Thanks for her expertise, the RealReal has achieved $123 million in venture funding with $500 million planned in gross merchandise. Most of this revenue comes from the RealReal app.

In 2016, the New York City pop-up location cashed in $2 million. RealReal’s Allison Sommer, the company’s director of Marketing, noted that the average order increases six times that of online orders. Users of the brand become instantly hooked once they see the cool features and value of the brand, she adds.

The next RealReal store will be in Las Vegas, Nevada. Clientele can take advantage of the company’s authentication specialists and gemologists that will on hand to assist customers with these pop-ups. With such success at the heels of its real-life, brick-and-mortar stores, RealReal’s competitors like Vestiaire Collective and ThredUp are following suit. The real challenge will be increasing its membership and brand awareness to stay on top.

Currently, RealReal has seven million members around the world. With that kind of presence online, Sommers points to having a brick-and-mortar store will be key to sending the company’s message to its current members and future members as well.

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