The RealReal is a consignment-based luxury item resale shop that started their business approximately seven years ago through ecommerce sales mainly in apparel and later branching out to fine jewelry, watches and accessories. They began opening pop-up boutiques over the past year to increase awareness to the items they offer and to gain market share.
A pop-up is a temporary store that helps bring awareness to The RealReal products and garner new online business in the future. The RealReal opened a pop-up in New York City in 2016 that garnered $2 million in sales. The great success of the New York City pop-up has prompted the seller to try pop-ups in other markets throughout 2018. Allison Sommer, the company’s Director of Marketing, told Glossy in February 2018 the average in-store order is six times an online order.
A pop-up helps the retailer focus on markets where their brand is not recognized as well as in other markets. Clients often become loyal online shoppers after visiting a store and seeing the quality and value of products offered. Having repeat online shoppers makes the cost of opening a pop-up worth the money and effort. The RealReal saw a 500 percent increase over the previous year in online buyers from the San Francisco area after opening a pop-up there for two months.
The RealReal pop-ups target shoppers with cafes and flower shops in some stores and employing specialists such as gemologists and “authentication” specialists for shoppers and consignors. They strive to hire people with backgrounds at high-end retailers rather than former store personnel who are only there for the commission. The pop-ups also draw in more consignors who can stop in to get price quotes or drop off items to be sold.
Given the success of their pop-up stores over the past year and a half, The RealReal is geared up to make 2018 a prime year for establishing pop-ups in various regions. They recognize having an in-store presence helps to not just gain more buyers but to gain more consignors and therefore ease the burden on landfills.
Read more about The RealReal: https://www.crunchbase.com/organization/the-realreal