The RealReal Is Exiting the Beauty Business

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.therealreal is renewing its focus on its luxury consignment business and reallocating resources from its direct business, including beauty.

When the company first started testing the beauty waters in 2018, its assortment featured clean beauty brands like, Pai Skincare and Babo Botanicals. Since then, the beauty retailing landscape has shifted dramatically. Players like Moda Operandi and Farfetch have added to the competition, while others have also dropped out. Late last year, Birchbox was said to be weighing options, including bankruptcy.has also been grappling with shareholder demands for profitability.

As recently appointed chief executive officer John Koryl told Wall Street analysts last month, “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.” The company laid off roughly 230 employees and said it would be closing flagships in San Francisco in Chicago, two neighborhood stores and two consignment offices. As of its last financial results for the quarter ending Dec. 31, losses shrank to $39 million, down from $52 million for the same period in 2021.

 

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