Anyone know how these guys and their ilk's business models work? I visited with my gf and could not believe how much square footage they had, all top-tier interior design. It was basically the same stuff throughout the entire store too - could have gotten the gist with a quarter of the space/FF&E. Must cost a fortune to set one of these up.
There were no other customers (this was in the middle of the day) but I know for a fact that this location has been around for several years now. You can't buy anything in-store, even small things like a towel.
I asked a coworker and got fed the typical "items there are so expensive they only need to sell a handful a week to hit their numbers" - is it really that simple?
They are in more affluent neighborhoods but cater to all surrounding areas. Because they have an interior design service, they typically don't do a piece; they furnish an entire property.
My parents used them for a summer home, and I know the rug was 26k, the table 16k, and the couch was 24k. These are just the pieces I could find. Other items were bought as well. The pieces all got a good return when we sold the summer house. They then paid an interior design fee. Our neighbors also used them each summer. So it's possible that, with a couple of big jobs, they can make enough to support the store for the year, but the initial cost is probably insane.
Very high end furniture, the store in Meatpacking is more of a showcase of the brand and they have a great/high end restaurant on the roof. It's very nice and the food is amazing, you also walk through the whole store to get there.
Wow what do your parents do?
Medical Director of a Regional Hospital and a Founding Partner of a 200 lawyer law firm. So, it is slightly out of my realm of being able to afford things. But they enjoyed their experience and I was in undergrad when it went down so helped where I could, since they let me stay at the summer house with friends.
Their stores are $50M+ in sales a year type places on say 35k spaces, so basically $1,500 a foot in sales, it’s really the creme of the crop furniture stores. Go to the store on Melrose in LA or La Jolla in SD, or anny of their other “mansions” and you’ll know the second you walk in that they swing a pretty heavy D. They have unbelievable respect from the landlord side of things and get their buildouts paid for almost entirely: we were quoting a $25M TA check to them for a deal we were working on with them probably 5+ years ago in the 2018 years from a large retail REIT. They are a mini major that everyone wants. They are in the Apple branding and sales sphere.
I started doing some digging. Now that they are the "Posh" store to go to look all fancy, the outlets are popping up and are attached to higher-end malls. So discounted furniture for the masses that want to say they get their furniture at RH. Think those mall and retail spaces are not prime rental locations as they once used to be. They turn a huge profit from those stores as well.
Most of my one bed apartments furniture is RH from the outlet in Long Beach, now there’s one in Culver City. It’s like Nordstrom’s and Nordstrom’s Rack, get it to the masses
Safavieh is far more interesting than RH
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