About half of The RealReal’s expansive concept shop on Melrose Avenue is on the market for lease.
A total of 4,955 square feet of ground floor space and another 852 square feet of mezzanine real estate near the corner of Melrose and Knoll Drive is available, according to leasing documents from brokerage firm Newmark. The space is listed as available immediately.
The San Francisco luxury consignment company moved into the 12,000-square-foot West Hollywood store in 2018 in a major move to the West Coast on the heels of The RealReal Soho opening. New York marked the start of an aggressive brick-and-mortar expansion through stores and valuation offices.
The Melrose space originally opened with a big emphasis on collectible sneakers and streetwear with about 5,500 square feet for a separate men’s store.
Construction is currently taking place on the section of the store at the corner of Melrose and La Cienega.
Business Moves
The Melrose listing comes as The RealReal continues its change of course under CEO John Koryl, who stepped into the position about a year ago following founder Julie Wainwright’s exit in 2022.
It’s been a series of fast-paced changes aimed at improving the business and moving to profitability since Koryl took the top spot.
Last year saw The RealReal cut more than 200 employees, or roughly 7 percent of its overall workforce. There were also store and office closures in San Francisco, Chicago, Austin and Atlanta.
The overarching goal has been to bolster the core business of luxury consignment. The RealReal exited the beauty category last year. It’s also reducing the amount of inventory on hand owned by the company.
The RealReal narrowed its losses in the quarter ended Sept. 30 to $22.9 million, compared to a net loss of $47.3 million in the year-ago comparison. The company’s quarterly revenue declined 7 percent to $133 million, buoyed by sales of watches, jewelry and handbags. Ready-to-wear, meanwhile, was seeing softer sales.
A read on how the business did during the holiday selling season is expected Feb. 29 when The RealReal reports its financial results for the quarter ended Dec. 31.
Be First to Comment