Luxury Consignment Retailer Considers Phoenix Money Offer

Published: Thursday, October 8, 2020 - 5:04pm
Updated: Friday, October 9, 2020 - 9:26am
Joyce Lee
The Real Real's retail store in San Francisco.

Phoenix is offering a San Francisco-based company up to $1 million to open a distribution center in the city. 

The Real Real is a luxury consignment retailer that does business online and at 10 stores and offices in major metro areas. 

Phoenix says the company plans to open an ecommerce center in the city, likely in an existing building, but a specific location hasn’t yet been selected. A city report says The Real Real intends to create up to 1,685 jobs over five years with more than 400 the first year. 

On Wednesday, the council approved paying the company $600 for each net new employee that earns more than $33,452 annually in their second year. The city is not obligated to pay if jobs are not created. The money will come from the city’s Strategic Economic Development Fund.

In a statement to KJZZ, The Real Real said:

“At this time, The RealReal is evaluating additional e-commerce space to support its continued growth, including the opening of a new retail store in Chicago in Q4 and additional Luxury Consignment Offices in Q4 and 2021. The RealReal has been approved for incentives by the city of Phoenix should the company sign a lease to occupy a local e-commerce center.”

The Real Real identifies as the world's largest online marketplace for authenticated, consigned luxury goods. Founded in 2011, its business model provides a platform for consumers to buy and sell their luxury items with an authentication process overseen by experts. The City Council report noted the company, in collaboration with the University of Arizona, created a degree program for gemology and in 2018 The Real Real funded an endowed chair in the department of geosciences to help the UA develop new research and proprietary technology for gemological studies.

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