The RealReal has decided to slash down its workforce and close down a bunch of its stores. So what forced this company to take such dire steps?
In this guide, we reveal the reason and the list of The RealReal closing stores in 2023. So make sure you read this guide till the end.
Is The RealReal Closing Stores?
The luxury consignment and fashion company, The RealReal, announced in July 2022 that it is planning to do some cost-cutting to increase its profitability.
As a result, the company announced later that it would be laying off 230 employees, representing 7% of its workforce, and would shut down 4 stores along with two consignment offices.
The company stated that “the current environment is more challenging as consumers are a little more conservative about making purchases.” as a result, the company had to take such drastic steps.
Why is The RealReal Closing Stores?
With the news of RealReal laying off employees, people are wondering why it is the RealReal closing stores.
Well, the company has been struggling with profitability for quite some time now and even made $151.2 million in loss last year.
As a strategy to reduce costs, the company decided to lay off employees and shut down a handful of stores.
The company also plans to cut down on its office space in New York and San Francisco.
List of 4 The RealReal Closing Stores In 2023
Here’s the list of The RealReal closing stores:
- Two flagship stores in San Francisco and Chicago.
- Two neighborhood stores in Austin and Atlanta.
Is The RealReal Closing Stores Permanently?
The RealReal is closing 4 of its stores permanently, including two flagship stores in Chicago and San Francisco and two neighborhood stores in Austin and Atlanta.
The company also plans to close down two consignment offices in Washington, D.C., and Miami as a move to cut down on its expenses and to focus on building more profitability.
Consumers will be able to shop from the rest of The RealReal stores available offline and online.
Wrap Up
Because of the changing consumer purchasing habits and because of the popularity of markets like Etsy, which is the biggest platform for counterfeit products, companies like The RealReal are struggling.
To make up for the huge losses, the company is set to close down 4 stores along with two offices. You can find the list of The RealReal closing stores in the above section.
Shefali Jain is a Content Writer & Editor at USWorkforce.org
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes. In her time at the organization, she has written and edited content on a range of topics, including employment law, human resources, and business management.