Greenwich Avenue is home to a new clothing store ”” this one specializing in high-end consignments.
The RealReal, which opened recently at 256 Greenwich Ave. in the space vacated by the Madewell chain, offers adult and kids”™ fashion, as well as jewelry, watches, fine art and home décor. Its website describes its mission as “curating the world”™s largest and most trusted marketplace for authenticated luxury.”
Originally a web-only concern, The RealReal, headquartered in San Francisco, moved into brick-and-mortar in 2017. With the Greenwich location, it now has 14 physical stores and expects to open 10 more by the end of the second quarter, according to CEO and founder Julie Wainwright ”” a reflection of the firm”™s $1 billion valuation.
According to Wainwright”™s most recent letter to shareholders, “We are optimistic that this strategy will contribute to deeply engaging with more of our most valuable customers and significantly unlock supply in these markets more efficiently than marketing investments alone.”
Wainwright went on to say that the brick-and-mortar stores drive supply, have high average order value (AOV) and low return rates, drive brand awareness and create a “halo effect” in each local market.
The company further maintains that:
Ӣ Consignors who interact with a retail location consign more than 1.5 times as much retail value as other consignors;
Ӣ Customers who buy in store and online spend more than three times as much per year as online-only buyers;
Ӣ Buyers who engage with RealReal stores have higher Net Promoter Scores than online-only buyers; and
Ӣ Buyers who interact with its retail locations have higher AOVs and higher order frequency than online-only buyers.
Tori Cornish, head of The RealReal”™s Greenwich shop, said the town “is an ideal location for our next neighborhood store because we have a strong existing base of customers and consignors in the area. We”™re excited to offer them a local and convenient spot to shop, meet with our experts and drop off consignment.
“We”™re focused on opening stores in areas that are central for our customers and consignors,” Cornish said. “Greenwich Avenue was the most ideal location because it”™s not only convenient for our local customers, but it”™s also a premier shopping destination for neighboring communities in New York and New Jersey.”
The store is creating six jobs in Greenwich, Cornish said.
The RealReal has also made a point of creating sustainability partnerships with various fashion brands.
“Partnerships like those we currently have with Stella McCartney and Burberry are beneficial for both the customer and the brand,” said Senior Director of Strategic Initiatives Allison Sommer. “They extend the life cycle of luxury items, grow the circular economy and reduce the environmental impact of fashion.”
According to Wainwright, The RealReal is now in conversations with Gucci, and expect to announce more partnerships later this year.
One dark cloud over The RealReal, especially given its moniker, are persistent questions about the authenticity of the wares it resells. Various consumer complaints have been lodged over the past couple of years; a 2019 CNBC investigation revealed that “many of the items on the site were being authenticated by copywriters with limited training, leading to mistakes.”
The broadcaster also received copies of The RealReal”™s monthly internal “Copywriting Faux and Tell” recaps of counterfeits. Among the examples cited were a pair of track pants with a label reading “T-shirt” and a Valentino scarf defined as being from China rather than Italy.
“Unlike most resale companies, The RealReal takes possession of all items and evaluates every one to authenticate it,” a spokesman told the Business Journal. “All items are put through a rigorous authentication process by our trained team of luxury experts before they are accepted for consignment.
“We make every effort to accurately authenticate the items we receive,” the spokesman continued. “If there”™s a question about the authenticity of an item purchased from The RealReal, we will always work with our customers to make things right.”
