The RealReal is planning on opening additional brick and mortar locations due to the success of the first successful store. The company has to give the plan the name “the year of the pop-up”. The concept behind creating additional brick and mortar locations is to enable the customer to see products in person. It helps to create a solid connection with the customer because they can actually see the products they sell online without having to feel as if they are playing a guessing game when they order their products.
In the past, RealReal enjoyed an extremely successful pop-up location in New York City in 2016 which raked in a reported $2 million. The company had such success that they continued their endeavors with these pop-up locations because reports claim that the company makes six times the profit with a brick and mortar location as opposed to an online-only e-commerce. Another successful location was San Franciso. RealReal kept that location open for around two months. The company is reportedly seeing a 500% increase in sales because of this strategy.
The RealReal was founded by CEO Julie Wainwright. She was famous in insider e-commerce circles. One of her most notable roles was the winddown of Pet.com among other important roles. Today she is heading the effort to make RealReal one of the fastest growing consignment startups in the country. In total, the company has managed to procure approximately $123 million in venture funding in addition to seen a total gross merchandise value of $500 million this year.
One of the business strategies that make RealReal so successful, is the attention to trust and authentication. Every piece of merchandise is carefully inspected and authenticated so buyers know that they are gettin what they pay for. This attention to detail creates trust with the consumer, and in turn helps attract loyal customers.