The Real Deal Luxury Pop-Up Stores
The Real Deal, which began as an online luxury consignment boutique, recently opened its first brick and mortar store in New York City’s Soho District. The store promises brand recognition, and of course, increased sales. The store sells designer clothing, jewelry and accessories, with gemologists, and authentication experts on hand. It is also testing its unique brand at other locations in San Francisco and Las Vegas.
The Real Deal was launched as an online startup six years ago, and since has become one of the fastest growing resale boutiques on the Internet. It has raised $123 million in venture funding, and expects gross merchandise of $500 million this year. Half of that amount is expected to be generated though the mobile app alone. The company attributes its success to its luxury market focus, as well as its detail to inspection and authentication before shipping. It sells men’s and women’s clothing, jewelry, bags and accessories, and high quality art.
One third of the store’s online buyers are millennials. Men make up 20% of store buyers, and are normally buying for themselves. Rolex watches are top selling items among men, as is leather and apparel. The store generally sells at competitive prices, but does carry high ticket items as well, and reports selling $30,000-$50,000 items on a regular basis. They also recently sold a Van Cleef & Arpels diamond cuff, which retailed at $250,000. It was consigned by a Saudi Arabian princess, and was sold to another Saudi princess in the USA for $100,000. The store realized $100 million in jewelry sales last year.
The sales potential for The Real Deal with the recent opening of the NYC store, and others on the way promise increased brand recognition for the company, and increased sales. The average in-store sales in NYC is six times that of on-line sales. Pop-up stores in San Francisco also generated a year-after-year 500% online buyer increase from those living in the San Francisco area. The company also plans to open pop-up locations across the United States this year, hoping to repeat the sales success already generated with pop-up locations.