The RealReal’s President and COO, Rati Sahi Levesque, details the company's strategic "reset year" which involved significant operational restructuring to achieve profitability. Discover how The RealReal adjusted its product mix, reduced operating expenses, optimized real estate, and refined inventory sourcing to drive a 29% revenue increase in 2022 and set the stage for profitability in the upcoming year. This episode is crucial for operators in the luxury resale and omnichannel retail space looking for insights into business transformation and sustainable growth.
Key takeaways
The RealReal focused on a
The RealReal strategically shifted its inventory sourcing to prioritize individual consignors over direct brand purchases, optimizing product mix and operational efficiency.
The company plans to open up to 50 new physical stores within the next decade, indicating a strategic omnichannel growth approach even after store closures for cost optimization.
Despite significant restructuring including layoffs and store closures, The RealReal achieved a 29% year-over-year revenue increase in 2022, underscoring the impact of disciplined execution and strategic adjustments.
The company's past success with celebrity-fueled launches highlights the power of influencer marketing in establishing brand presence and trust in competitive luxury markets.
Luxury resale company The RealReal, which went public in June 2019, is nearing profitability.
“Next year, we will be profitable on a full-year basis,” Rati Sahi Levesque, the company’s president and chief operating officer, said on the latest episode of the Glossy Podcast. And big changes were made to ensure the goal is met: “Last year was really a reset year. [After] looking at our product mix, our operating expenses and our real estate, we rejiggered the business in a lot of ways.”
That included making some layoffs, closing some stores and restricting the sourcing of inventory to individual consignors — no more buying products from brands. The RealReal’s total revenue for 2022 landed at $603 million, an increase of 29% year-over-year.
Now, Sahi Levesque said the company is focused on “discipline and execution,” when it comes to its 2024 plans. She also discussed the company's strategy for winning sellers, its celeb-fueled launch 12 years ago and its plans to open up to 50 stores within the next 10 years.
What does this episode say about finance & fundraising?
The RealReal focused on a
What does this episode say about retail & omnichannel?
The RealReal strategically shifted its inventory sourcing to prioritize individual consignors over direct brand purchases, optimizing product mix and operational efficiency.
What does this episode say about supply chain & operations?
The company plans to open up to 50 new physical stores within the next decade, indicating a strategic omnichannel growth approach even after store closures for cost optimization.
What does this episode say about founder & leadership?
Despite significant restructuring including layoffs and store closures, The RealReal achieved a 29% year-over-year revenue increase in 2022, underscoring the impact of disciplined execution and strategic adjustments.
What does this episode say about finance & fundraising?
The company's past success with celebrity-fueled launches highlights the power of influencer marketing in establishing brand presence and trust in competitive luxury markets.
