Neiman Marcus gets RealReal on luxury consignment

In a classic case of “if you can’t beat ‘em, join ‘em,” Neiman Marcus is deepening its relationship with an organization that could be viewed as a competitor.

Neiman Marcus announced a strategic partnership with the luxury consignment group The RealReal that involves those who sell their used merchandise to be paid in Neiman Marcus gift cards. The RealReal claims to offer the largest selection of pre-owned and authenticated luxury items with consignors earning between 60% and 70% of the price at which merchandise is sold. Consignors can bump their payout another 10% by accepting payment in the form of a Neiman Marcus gift card thereby enticing customers to make additional purchases at the upscale department store chain.

The new gift card payment option expands a consignment program Neiman Marcus began earlier this year in six stores that is now being expanded to 34 stores. The RealReal also offers a white glove service where a representative of the company called a “luxury manager” will come to customers’ homes in 18 major cities to collect goods for consignment.

"Neiman Marcus always puts a priority on enhancing our customer's shopping experience and exceeding her expectations. Through our partnership with The RealReal, our customers can now schedule a private, in-home consignment with The RealReal through all Neiman Marcus stores," said Wanda Gierhart, chief marketing officer at Neiman Marcus. "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."

Also recognizing the benefit was The RealReal CEO Julie Wainwright who founded the company in 2011 and this year projects consignors will receive payments totaling more than $100 million.

"There is a very real demand for a service-oriented aftermarket solution for selling luxury goods, evident through the thriving business we've established,” Wainwright said. "As the leader in luxury resale, we couldn't be prouder to partner with the leader in luxury retail to give our customers and consignors a smart way to shop new luxury items at their favorite retailer and get fast liquidity for those items once they are finished with them."