The RealReal opens its biggest flagship in Chicago

What: the industrialisation of a new store experience mixing local and resale.

Why it is important: An example to have in mind for department stores wondering how to address new retail trends and consumer behaviours: resale, proximity, food and beverage, all at the same time in the same space. It is all the more important as the stores are seen by the company as "an accelerator" to e-commerce in terms of business, by bringing a lot of consignment (dropping easily the product you want to sell) and allowing entertainment, thus repeat visits.

The RealReal, an online marketplace for authenticated and consigned luxury goods, has announced the opening of a 5th store in the US, in Chicago. More than a second-hand platform, the group has developed an experience suitable to all kinds of customers:

• Sellers: from "drop off" to white gloves estimate at home with experts, getting access to the products is key and The RealReal eased to the maximum this part to make it painless and frictionless to sellers, including with making experts accessible to improve the quality of the product evaluation,
• Buyers: the unique nature of products sold encourages repeat visits, and The Realreal pushed the model quite far as everything in the store is for sale (including furniture), therefore sticking to the new customer's trends and interest in the home. They also sell art made by local artists, local food products, and opened a café on the premises. Services on site are provided: watch expert, tailor, and advisors.

The RealReal has a model mixing e-commerce and boutiques, and the latter is seen as the ideal way to encourage interactions with experts, which in turn encourages sellers to come and propose their products.

The RealReal performed a turnover of €269m in 2019, with a €171m gross profit and a total inventory worth €851m. The second quarter ended in June showed a revenue decrease of -21%.

The RealReal Opens Midwest Flagship Store 

The RealReal opens its biggest flagship in Chicago Pictures