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Credit: photo courtesy of RH. As coronavirus began to sweep across America, putting much of the country in shutdown, luxury furniture retailer RH — formerly known as Restoration Hardware — executed a slew of cost cutting measures. On April 6, CEO Gary Friedman announced that the firm was laying off employees, temporarily furloughing 2, workers, and instituting pay cuts for all leadership positions.
In a June 3 letter to shareholders, Friedman laid out a grand vision for how he plans to turn RH into a global luxury powerhouse by entering new businesses, including hospitality, residential housing and more.
To top it off, RH will build an interior design, architecture, and landscape architecture services platform inside its galleries, remake its website, and take a stab at high-end housing. It plans to debut RH England, its first showroom in Europe, in , though the company has not shared details on the specific location.
Friedman declined an interview request from Forbes. The firm would not comment on the timeline of the project, but confirmed that RH plans to build and operate its own hotels and residences, instead of licensing out its name. Furthermore, its hotels will not use or display RH furniture; instead, they are designed to provide a luxury experience that elevates the overall RH brand. Why pivot? The 50, square feet showroom RH trades at 34 times its trailing earnings as of June 23; its closest comparable, Williams-Sonoma, trades at 20 times earnings.
RH instead finds certain artists that they love and curates their work. For example, they have created partnerships with designers and artisans in the production of the RH lines.
RH is clearly a disruptor of the marketplace, according to many experts, and sometimes even to the point where it can disrupt itself. Others say that RH is actually reinventing the brick and mortar store concept and that includes using massive flagship stores in unique locations, like Boston for example.
From knobs and pulls to antique iron calipers and so much more, RH sells enough a wide range of unusual decor items and oddities to start a museum of things like torture-chamber-chic decorating.
If you ever visit a Restoration Hardware store, like so many others have, you could end up walking out with anything from an opulent chandelier to an English coal mining lantern. Approximately 65 percent of the RH products are imported from overseas, especially from southern Chinese contract manufacturers. Those two countries produce some of the finest bedding and linens in the world. In , the RH Small Spaces line was created. It was made up of scaled-down home furnishing for smaller spaces.
In , the Small Spaces source book came out and depicted 18 different smaller homes in Europe and the U. Then, in , the company also released their new tableware line. Criticism of the sheer length of it came from Time magazine. They said that the pages were simply a waste of paper. The catalog did weigh in at 17 pounds with 3k pages. RH, however, said that they combined all of their separate sourcebooks into just one for the purpose of reducing the carbon footprint.
Some critics still felt that it was wasteful. RH opened a new store in Atlanta in that had 70, square feet.
Atlanta Magazine dubbed it a full-line design gallery for the next-generation. It could actually rival the Boston store in amenities, which include a foot infinity pool.
Following an alleged inappropriate affair in with a female employee who was younger than Friedman, he resigned. Their goal was to offer a brand that would literally succeed in blowing wide open the door of unusual decor items for sale. The grand opening was so outrageous that police had to shut it down. After years of planning, the massive wild and crazy Boston store opened in Now shoppers have access to literally an endless supply of crazy features, decorative flourishes, and architectural details.
The amazing things that you can see at the Boston RH Gallery include the following highly unusual accouterments. The atrium in the center of the building was opened up for the purpose of recapturing the amazing views from the ground floor level and extending them all the way up to the beautiful coffered and gilded ceiling.
The foot-high space now houses a glass elevator that was modeled after the elevator in the Bradbury Building in Los Angeles. Not only is the RH Boston elevator a showstopper, it actually did stop the show for a time.
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