The RealReal is an online and brick-and-mortar marketplace for authenticated luxury consignment. Credit: Artem Beliaikin.

Visit our Covid-19 microsite for the latest coronavirus news, analysis and updates

Follow the latest updates of the outbreak on our timeline.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Luxury online consignment company The RealReal has laid off and furloughed employees as the coronavirus (Covid-19) continues to spread.

The company has reduced headcount by approximately 10% while expenses related to its payroll has been decreased by around 15%.

The company has furloughed approximately 15% of employees in its e-commerce centres, retail stores, luxury consignment offices, sales organisation and headquarters.

The move is one of the many measures the company has implemented to maintain cost structure and preserve liquidity.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The RealReal CFO Matt Gustke said: “This unprecedented crisis has significantly impacted our ability to operate at previously planned levels, stemming primarily from limited warehouse operations. In response, we undertook a comprehensive review of our operations, including stress test scenarios.

“We took decisive action to reduce operating expenses and maximise liquidity. With these actions and approximately $303m of cash, cash equivalents and short-term investments on the balance sheet at the end of March, we believe we are well-positioned to rebound strongly and fuel growth once the economy stabilises, and we believe we are sufficiently capitalised to reach profitability.”

In addition to this, the company has taken various measures including postponing the opening of its Chicago store, deferring certain capital investments and reducing executive salaries and more.

These actions are expected to lead to operating expense reductions of more than $70m and capital expenditure reductions of approximately $15m in 2020.