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RH Toronto Canada
The RH gallery in Toronto, Canada. It is planning its first European gallery in London
RH, the upmarket furniture retailer formerly known as Restoration Hardware, says it has pinpointed the location for its first store outside North America, planned for London.

 

Without yet disclosing the area or building, chairman and CEO Gary Friedman told analysts the site was "iconic" but added the nature of its real estate deals meant they are "not the simplest and easiest to do."


In its domestic market, RH operates large superstores, which it calls galleries, displaying premium furniture and ancillary products alongside high-class instore restaurants.


Mr Friedman added that the UK market was "a $300 million or $400 million (£220m–£300m) opportunity" for the RH brand. Besides London, he also revealed that Paris could be the site of another international store.


The London site is, said Mr Friedman, top of the to do list of David Stanchak, RH co-president and chief real estate officer.


Mr Friedman said : "The international opportunity may be bigger than the U.S. opportunity because there is really no competition internationally when we look at what we’re doing."


His comments are a reference to the retailer moving to a membership model, whereby consumers pay an annual fee to become an RH member in return for a perpetual discount on products.


It is is part of RH's plan to move away from cyclical sale periods, which appears to be paying off. The company recorded Q1 net income of $28.1 million (£21m), which compared with a small loss for the same period a year ago.



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