The RealReal

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The RealReal, Inc.
TypePublic
Nasdaq: REAL
IndustryRecommerce
Founded2011
FounderJulie Wainwright
HeadquartersSan Francisco, California
ServicesAuthenticated Luxury Consignment
RevenueIncrease $300 Million(2019)[1]
Number of employees
1700 (2019)
Websitetherealreal.com

The RealReal, Inc. is an online and brick-and-mortar marketplace for authenticated luxury consignment.[2] Based on the circular economy, The RealReal sells consigned clothing, fine jewelry, watches, fine art and home decor. It employs an in-house staff of experts including horologists, gemologists, art curators and luxury fashion authenticators who inspect items for authenticity and value.[3][4]

History[]

The RealReal was founded in 2011 by Julie Wainwright, an e-commerce entrepreneur. By July 2018, the company had raised $288 million in venture capital funding.[5]

In 2017, The RealReal opened its first permanent retail store in New York City. It also opened pop-ups in San Francisco and Las Vegas. In 2018, it opened its second retail location in Los Angeles.[6][7] In 2019, The RealReal opened a third retail location, its second in New York, on Madison Avenue on the Upper East Side.[8] In 2020, The RealReal opened a fourth retail location in San Francisco’s Union Square,[9] a fifth in Chicago on the Magnificent Mile[10] and a sixth in Palo Alto, California.[11] In 2021, the company opened additional retail locations in Brooklyn, New York,[12] Newport Beach, California,[13] Greenwich, Connecticut,[14] Austin, Texas,[15] Dallas, Texas,[16] Marin, California,[17] Atlanta, Georgia,[18] Manhasset, New York,[19] and Palm Beach, Florida.[20] As of September 24, 2021, The RealReal had 18 Luxury Consignment Offices across the U.S., 15 of which are in its retail stores.

In early 2019, The RealReal announced it would be adding a half-million square foot e-commerce space in Perth Amboy, New Jersey, to its existing e-commerce centers in Secaucus, New Jersey, and Brisbane, California.[21] In 2020, the company announced it signed a lease to open an additional e-commerce center in Phoenix, Arizona.[22]

On May 31, 2019, The RealReal submitted a preliminary filing (S-1) to the SEC to go public.[23]

On June 28, 2019, The RealReal went public on Nasdaq under the symbol REAL and it raised $300 Million during its IPO.[24][25]

Controversy[]

The RealReal has had multiple claims from luxury designers that items on their website were counterfeit. Most notably, in 2018 Chanel filed suit in the Federal Court of the Southern District of New York, alleging The RealReal for hosted counterfeit (fake) Chanel on their website and misled customers that an affiliation existed between the two.[26][27]

In early 2020, TheRealReal was sued in a class action lawsuit regarding misstatements to investors, alleging that authenticators were given very little training and strict quotas that resulted in the potential for counterfeit or mislabeled items to make it through the company's authentication process more often than purported.[28][29]

Sustainability[]

In 2017, The RealReal announced a sustainability partnership with luxury fashion brand Stella McCartney, which launched in 2018.[30][31] It also established the first Monday in October as National Consignment Day, an annual holiday. The following year, to mark National Consignment day, The RealReal launched a custom sustainability calculator. Developed with environmental consulting firm Shift Advantage, it measures the environmental impact of consignments processed by the company.[32][33][34] In 2019, the company marked National Consignment Day by launching a second sustainability partnership with luxury brand Burberry.[35] For National Consignment Day 2020, The RealReal announced its third sustainability partnership with Gucci.[36] When consumers consign or buy Gucci on The RealReal through the end of 2020, a donation will be made to One Tree Planted to support its mission to protect biodiversity and reforestation.

References[]

  1. ^ "The RealReal Announces Fourth Quarter and Full Year 2019 Results". 25 February 2020.
  2. ^ Danziger, Pamela N. "Luxury Brands Can't Ignore Fashion Reseller The RealReal Anymore". Forbes. Retrieved 2019-01-30.
  3. ^ Reid, Hilary (2018-05-14). "The RealReal's Radical Vision of Secondhand Luxury". The New Yorker. ISSN 0028-792X. Retrieved 2019-01-30.
  4. ^ "How luxury consignment works at The RealReal". www.marketplace.org. 17 October 2018. Retrieved 2019-01-30.
  5. ^ Kellaher, Colin (2018-07-25). "Luxury Consignment Retailer RealReal Raises $115 Million". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-04-04.
  6. ^ Tschorn, Adam (31 July 2018). "The RealReal's first SoCal store boasts a dedicated men's space, a handbag vault and a 'sneakerdome'". Los Angeles Times. Retrieved 2019-01-30.
  7. ^ "Luxe Consignment Brand The RealReal Opens L.A. Storefront Complete With Whiskey Bar". The Hollywood Reporter. 31 July 2018. Retrieved 2019-04-04.
  8. ^ Edelson, Sharon (2019-05-08). "The RealReal Appeals to Wealthy UES Residents With Curation and Service". WWD. Retrieved 2019-11-09.
  9. ^ "Bloomberg - RealReal Plans More Stores to Boost Fashion Resale Economy". Bloomberg.com. 4 March 2020. Retrieved 2020-04-03.
  10. ^ Palmieri, Jean E. (2020-10-23). "The RealReal Opens Store on Chicago's Michigan Avenue". WWD. Retrieved 2020-10-23.
  11. ^ "COVID Shopping: Palo Alto Luxury Consignment Shop The RealReal Sees Surge in Business Amid Pandemic". 2020-11-24. Retrieved 2021-02-05.
  12. ^ Petrarca, Emilia (2021-01-26). "The RealReal Has Arrived in Brooklyn". The Cut. Retrieved 2021-02-05.
  13. ^ Friday, Dorothy Crouch |; February 5; 2021. "The RealReal Expands Resale Reach With New Locations". www.apparelnews.net. Retrieved 2021-02-08.CS1 maint: numeric names: authors list (link)
  14. ^ Marchant, Robert (2021-03-07). "'Ideal location:' The RealReal opens on Greenwich Avenue". CTInsider.com. Retrieved 2021-04-05.
  15. ^ "Luxury resale shop with vintage treasures unbuttons first Austin storefront". CultureMap Austin. Retrieved 2021-04-06.
  16. ^ "Knox Street redo in Dallas includes The RealReal luxury consignment store". Dallas News. 2021-04-08. Retrieved 2021-04-08.
  17. ^ "The RealReal brings IRL designer consignment to Marin". 7x7 Bay Area. 2021-07-21. Retrieved 2021-08-09.
  18. ^ Wells, Myrydd (2021-07-29). "The RealReal brings a brick-and-mortar upcycled luxury goods store to Atlanta". Atlanta Magazine. Retrieved 2021-08-09.
  19. ^ "Fashion Resale Company The RealReal Coming To Manhasset". Port Washington, NY Patch. 2021-08-04. Retrieved 2021-08-13.
  20. ^ Barnett, Kari. "For RealReal: Luxury consignment store fits in on Worth Avenue". sun-sentinel.com. Retrieved 2021-10-05.
  21. ^ Jacobs, Alexandra (2019-01-23). "Tycoon of the Pre-Owned". The New York Times. ISSN 0362-4331. Retrieved 2019-01-30.
  22. ^ "Luxury online consignment retailer The RealReal signs big lease for Phoenix distribution center". www.bizjournals.com. Retrieved 2021-02-05.
  23. ^ "S-1". sec.gov/. Retrieved 2019-06-04.
  24. ^ Maheshwari, Sapna (2019-06-27). "The RealReal I.P.O.: Secondhand Fashion Goes Mainstream". The New York Times. ISSN 0362-4331. Retrieved 2019-07-15.
  25. ^ "The RealReal Raises $300 Million in IPO". The Business of Fashion. 2019-06-28. Retrieved 2021-08-21.
  26. ^ Broderick, Vernon S. "OPINION AND ORDER re: 29 MOTION to Dismiss First Amended Complaint. filed by The RealReal, Inc". law.justia.com. United States District Court for the Southern District of New York. Retrieved 11 March 2021.
  27. ^ Ell, Kellie (21 November 2018). "Chanel and The RealReal Battle It Out Over What's Real and What's Fake". WWD.com. WWD. Retrieved 11 March 2021.
  28. ^ Inc., Shareholders Foundation (2020-03-10). "NASDAQ: REAL Shareholder Notice: Lawsuit against the RealReal, Inc. announced by Shareholders Foundation". NASDAQ. ISSN 0362-4331. Retrieved 2019-01-28.
  29. ^ Jacobs, Alexandra (2019-01-23). "Tycoon of the Pre-Owned". The New York Times. ISSN 0362-4331. Retrieved 2019-01-28.
  30. ^ Edelson, Sharon (2017-10-02). "The Real Real, Stella McCartney Team to Embrace Circular Economy". WWD. Retrieved 2019-01-30.
  31. ^ Abad, Mario. "Why The RealReal And Stella McCartney Are Calling For Luxury Brands To Embrace Reselling". Forbes. Retrieved 2019-01-30.
  32. ^ "The RealReal Is Getting Real About Consignment Shopping Sustainability". NYLON. 2018-10-01. Retrieved 2019-01-30.
  33. ^ Kliest, Nicole. "See How Many Car Miles You Save When Secondhand Shopping With This Calculator". Who What Wear. Retrieved 2019-01-30.
  34. ^ Monday, Dorothy Crouch |; October 1; 2018. "The RealReal Observes National Consignment Day by Launching Sustainability Calculator". www.apparelnews.net. Retrieved 2019-04-04.CS1 maint: numeric names: authors list (link)
  35. ^ Millie Dent (7 October 2019). "Burberry partners with The RealReal to test reselling high fashion". CNN. Retrieved 2019-11-09.
  36. ^ Farra, Emily (5 October 2020). "Gucci and The RealReal Announce a Game-Changing Partnership". Vogue. Retrieved 2020-10-07.

External links[]

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