Inside The RealReal’s new store in New York City

With over 9 million users and an estimated 500 million US dollars in annual revenue, The RealReal has established itself as one of the most prominent players in fashion resale, a market that has grown 21 times faster than retail over the past three years and is projected to grow from 24 billion US dollars to 51 billion US dollars in the next five years. The company, which is said to be in talks with investment banks for an IPO, sells consigned clothing, jewelry, watches and home decor from luxury brands such as Gucci, Louis Vuitton, Saint Laurent and Stella McCartney.

Founded in 2011 as an online business, TheRealReal transitioned from clicks to bricks about one and a half year ago, with a store in SoHo, New York. Since then, eleven more physical stores were added to its retail portfolio in New York, Los Angeles, Chicago, San Francisco, Washington DC, Dallas and Miami.

This week, The RealReal is opening its third location in New York on Madison Avenue. It is the first store to give equal weight to both consignment and shopping, with services like consignment drop-offs, complimentary valuations, and product viewings for high-value pieces. Visitors can also book appointments to shop with the help of a personal stylist.

FashionUnited spoke with Head of Retail Michael Groffenberger and Women’s Category Director Sasha Skoda to learn more about the new store.

Why is The RealReal opening a new store in New York?

Groffenberger:Since opening the Soho flagship, we’ve seen strong demand for consigning and shopping, so we’re growing in New York to support that demand. We’re making our consignment and expert services as well as our shopping experience more accessible to our uptown consignors and customers. It’s the uptown complement to our downtown flagship in SoHo.

What makes the Madison store different from the other NY locations?

Groffenberger:It’s a smaller format store with an expanded Luxury Consignment Office (LCO) and a tailored selection of merchandise. Madison is our first store that gives equal weight to both consignment and shopping, bridging the gap between LCOs and our flagship stores.

What goes into merchandising 870 Madison? How is it different?

Skoda:Before opening a store, we do a lot of research into understanding what the local customer consigns and purchases from us. We find that our Upper East Side customers are often collectors and shop for those incredibly special, one-of-a-kind luxury items, particularly handbags and fine jewelry and watches. Hermes, Gucci, Bvlgari, Celine, Cartier, Prada, and Rolex are some of the more popular brands for our Upper East Side customer. With that insight and given the smaller format of the store, we’re selecting a localized and much more tightly curated assortment with classic staples, on-trend pieces, and rare vintage and archival finds.

What have you learned from opening the other two stores and how are you applying that to 870 Madison?

Groffenberger:We’ve seen how important the physical store is for customers: it gives consumers another touchpoint to shop, drop off consignment and meet with our experts to understand resale value. Our brick-and-mortar spaces allow us to connect our community directly with our team of experts, and we’ve seen really strong demand for that -- whether that’s sitting down with a horologist to discuss a high-end watch someone is considering consigning or getting a complementary valuation to learn more about a vintage piece of fine jewelry. We’re applying that learning here by expanding our capacity and tapping into our local sneaker experts to offer sneaker valuations. Additionally, by delivering a luxury shopping and consigning experience in a physical store setting, we’re able to attract many first-timers to the resale market.

How does the new Madison store differ from the other NY stores in terms of design and decor?

Groffenberger:We created more defined areas with different moods, and varying degrees of privacy and community to support a space with expanded expert services and consignment.

Our color palette was specifically chosen to be a backdrop that showcases, rather than competes with, the product. It’s centered around a “sludge” green with a navy blue handbag room on the ground floor.

The store also features artwork by Alex Katz, Picasso ceramics, vintage Italian glass vases, vintage Scandinavian and Japanese ceramics, an African decorative step ladder, Murano glass wall sconces, a curated book selection, and vintage furniture by designers such as Tobia & Afra Scarpa, Jean Royere and Mario Bellini.

Upstairs in the library, with its large arched windows, we combined a vintage French cane daybed with a black lacquered screen designed by Charles and Ray Eames, and chairs from our “Curated by The RealReal” collection upholstered in a leopard fabric.

Will The RealReal be opening more stores in the future?

Groffenberger:Right now we’re focused on the opening of Madison. It’s not a signal of any strategic pivot toward a greater brick-and-mortar presence, as much as meeting demand from our members as where it suits them best.

Pictures: courtesy of The RealReal