RH’s new location is a ‘luxury compound’
RH (formerly Restoration Hardware), in its pursuit of the luxury customer, has built an experiential one-off location in Napa Valley, a popular luxury destination, that’s so big they’re calling it not a flagship, but a “compound.”
RH Yountville is made up of five buildings in an idyllic setting, with garden courtyards tying together such offerings as a two-story wine vault, boutique design galleries and outdoor areas for wine tastings decorated with antique artifacts. One of the centerpieces of the luxury complex is an indoor-outdoor restaurant with a glass roof, chandeliers and seven-foot-tall fountains.
Such a high-end concept in a global destination demonstrates the chain’s focus on exclusivity — a strategy that seems to be working for RH. The company has experienced a rebound over the past two years as it has launched a couple of upscale-targeted initiatives.
RH successfully rolled out a membership program which, for $100 per year, offers significant discounts as well as services like interior design consultations and concierge order management. The chain also launched its high-end hospitality brand, RH Hospitality. Upscale Instagrammers have demonstrated that they’re big fans of the rebranded RH, making the Chicago location the seventh most Instagrammed café in the U.S. in 2017.
The RH Yountville location isn’t the only opulent experiential location the chain has recently opened. In September, RH opened a glitzy six-story location in Manhattan’s meatpacking district, as reported in Architectural Digest. But an appearance in Napa Valley raises the prospect that the chain might be planning similar moves in other areas heavily trafficked by wealthy vacationers.
Other luxury retailers have likewise been working to create unique experiential flagships that appeal to today’s luxury shoppers.
Bergdorf Goodman, for instance, undertook a revamp of its 5th Avenue flagship store with an aesthetic that the company geared specifically to luxury Instagrammers, according to Fast Company. Barneys took a similar tack with a visually striking spiral staircase in its Chelsea location.
And Tiffany’s is planning a similar full overhaul of its flagship, building on the success of its Instagram-friendly Blue Box Café, which opened in the fall of 2017.
- RH Unveils RH Yountville – An Integration of Food, Wine, Art and Design in the Napa Valley – BusinessWire
- RH Opens Massive, Glittering New Gallery in New York City – Architectural Digest
- Is membership really what’s driving RH’s rebound? – RetailWire
- How should Tiffany modernize its flagship? – RetailWire
DISCUSSION QUESTIONS: Is such a “luxury flagship compound” as the RH Yountville location in Napa Valley a worthwhile investment for RH? Which luxury or other home furnishing retailers might benefit from opening these types of experiential one-off locations and what destinations would make good places for them to leverage?