Neiman Marcus has teamed up with luxury online consignment shop The RealReal to do a unique exchange. Now, instead of getting cash for their designer trade ins once they sell (think Chanel, Hermès, Louis Vuitton, Gucci and Prada), The RealReal will pay consumers in Neiman Marcus gift cards.
“After seeing the increased demand for this service since its pilot program launched in February, we recognized the benefit of offering the service to our customers across the country,” Wanda Gierhart, chief marketing officer at Neiman Marcus, told the Dallas Morning News.
Women obviously are eager to turn their closets into cash. The RealReal had revenue of $100 million last year and says it will double that this year. Founded in 2011, the San Francisco-based The RealReal has raised $83 million in funding.
Here’s how it works, according to the report:
• Neiman Marcus sales associates will promote the idea of a “trusted and private consignment service” through The RealReal to their customers.
• Neiman Marcus staff will help customers set up an appointment with The RealReal luxury managers in each market, who will provide “white-glove pickup” service of items that customers want to sell.
• The RealReal pays for the items in the form of Neiman Marcus gift cards, which pay 10% more than a cash payout.
• Customers then spend the gift cards at Neiman Marcus.
The RealReal said 40% of its customers say they would be interested in receiving payment in the form of gift cards to luxury retailers. Neiman Marcus is The RealReal’s first luxury retail partner in the program.