Luxury consignment platform The RealReal is taking steps to reduce costs and achieve profitability in response to increasing pressure. The company has announced a cost reduction plan that will result in a 7% reduction in its workforce and the closure of several stores. This plan is expected to impact approximately 230 employees, with an estimated cost of $1.7 to 2.2 million for severance payments and related expenses. The majority of these charges are anticipated to be incurred in the first quarter of fiscal 2023.
In addition to the workforce reduction, The RealReal will be shutting down two flagship stores in San Francisco and Chicago, as well as two neighborhood stores in Atlanta and Austin. It will also be closing two luxury consignment offices in Miami and Washington, D.C. Furthermore, the company is planning to reduce its office spaces in San Francisco and New York. The implementation of this cost reduction plan is projected to be completed by the end of the first quarter of fiscal 2023.
Earlier this year, The RealReal had announced its intentions to improve the luxury consignment experience for its members. This includes the introduction of a new consignor concierge service, an enhanced loyalty program, and an improved data insights center. Alongside these efforts, the company appointed John E. Koryl as its new CEO in January, following the departure of founder Julie Wainwright in June 2022.
Stay updated with The RealReal’s developments and news by visiting their official website [insert link] and following them on their social media platforms [insert link].
[Useful Links] 1. Official Website of The RealReal: https://www.therealreal.com/2. The RealReal on Instagram: https://www.instagram.com/therealreal/
