THE WHAT? Resale site The RealReal is winding down its beauty business in a bid to refocus on its luxury consignment business and reallocate resources from its direct business, according to a report by WWD.com.
THE DETAILS As of this week the site had started to discount all beauty products as it prepares to close.
Talking to WWD.com, a spokesperson said: “We’re prioritizing our efforts on growing our luxury consignment business. With that, we have been deemphasizing the direct side of our business, including our beauty category, which is a small piece of our marketplace. We’ll continue to sell through the existing inventory and sunset the category.”
THE WHY? The RealReal has been struggling for some time amidst shareholder demands for profitability.
Chief Executive Officer John Koryl spoke to Wall Street analysts last month, stating: “I have no illusions that The RealReal’s path to profitability will be achieved overnight or with only minimal effort. Rather, these types of accomplishments take both time and energy.”
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