After their first physical location in New York City was successful, The RealReal has plans to invest in another store in 2018. According to the director of marketing for the company a brand is legitimized by stores. Allison Sommer discussed the stores of the future on Tuesday at a Miami conference. In 2016 the New York pop-up location for the RealReal earned $2 million after opening their doors in SoHo. This motivated the retailer to test new markets by using pop-ups. The typical value of an order at the store exceeds the online orders times six. Allison Sommer believes once the customers see the value and cool features of the brand they become loyal.
The pop-ups for RealReal are building awareness of the brand. Evan after the wrap of the pop-up in San Francisco the yearly increase in online buyers was 500 percent. The upcoming pop-up in Las Vegas is hoping to experience the same success. Additional pop-ups will appear all over the united States during the course of the year. RealReal is attempting to find the customers not as accustomed to the pop-ups as Los Angeles or New York. They are becoming increasingly popular with the digital brands due to their high rate of success. Not every RealReal pop-up will include a flower shop and cafe like the flagship in New York. The pop-up series is about experts, gemologists and authentication specialists there to help the customers.
The employees hired by RealReal have experience at places including Gucci and Sotheby’s. Allison Sommer wants employees interested in much more than commission. The VIP customers will enjoy private shopping events. There will be educational workshops including The History of Chanel and How to Value a Diamond. These workshops are designed to bring in additional traffic. A consignment office in the store will be available for the consignors. This will enable them to receive quotes for the price of certain items. If the quote is accepted the item is left with the store and sold online.
RealReal is now six years old. They are the online luxury startup with the most funding. Their sellers are a critical part of their success.