First Look: RH opens ‘gallery’ location in California
“RH Palo Alto reflects our commitment to creating architecturally inspiring and immersive spaces that blur the lines between residential and retail, indoors and outdoors, home and hospitality. Spaces that activate all our senses, and spaces that cannot be replicated online,” said RH chairman & CEO Gary Friedman. “We are thrilled to be part of the energy and invention that continues to define the Silicon Valley community, and we are proud to add this gallery to our hometown portfolio.”
2024 Expansion
RH reported disappointing fourth-quarter earnings and revenue, but still struck a positive note about the current year. It expects demand to pick up through 2024, forecasting sales growth of 8% to 10%.
The company continues to expand its design galleries (stores) with the opening of five new locations in 2024, including two in California besides Palo Alto (Newport Beach and Montecito). Other new locations include Raleigh, N.C., and Cleveland.
In November 2023, RH opened a design gallery in Indianapolis. All the outposts feature restaurants and wine bars, as well as design offices. In other 2024 plans, the company will unveil its first RH Interior Design Studio, in Palm Desert, Calif.
On the global front, RH recently opened a gallery in Brussels, Belgium, and has one scheduled to open in Madrid, Spain this summer. Looking further out, RH announced plans to open in Sydney, Australia, in fall 2026.
The Gallery in Double Bay will be a five-story development with a rooftop restaurant and wine bar. In other global developments, RH Paris has been delayed until spring 2025 due to construction restrictions relating to preparations for the Olympic Games this summer.
The company is also planning to move beyond the home furnishings market into the $1.7 trillion North American housing market with the launch of RH Residences, described as fully furnished luxury homes, condominiums and apartments with integrated services "that deliver taste and time value to discerning time-starved consumers."
RH is also increasing its focus on its luxury bath and kitchen brand Waterworks, which it acquired in 2016. It plans to open a 3,500-sq.-ft. Waterworks Showroom in its design gallery in Newport Beach, Calif. in the fourth quarter of 2024.