Restoration Hardware — now known as RH — is recognized for pushing the boundaries of physical retail. CEO, Gary Friedman, is an advocate for both the social and physical aspects of the retail experience, and his current modus operandi is focused on the idea of radically redesigning new, dramatic large spaces under the label “RH Gallery."
Forbes reporter Steve Dennis was speaking at the same conference as Friedman a few years ago. There, he learned about RH’s plans — and ultimately Friedman’s vision — to feature signature restaurants, extensive interior design services and rooftop bars galore under the RH umbrella. “The company reported record sales, earnings and margins and 7% comparable store sales growth and achieved what it believes is an "industry-leading ROIC of 27.8%,” said Dennis. “One of the reasons I love the RH story — and now include the RH Gallery in most of my keynotes — is that it is a great case study of what I call the Eight Essentials of Remarkable Retail, most notably the last two: Memorable and Radical.”
With a “must-visit” reputation for its immersive and fun qualities, RH delivers strong customer utility and ultimately an unforgettable — or highly memorable — shopping experience. “The Eighth Essential of Remarkable Retail is ‘radical,’ said Dennis. “Being radical is the willingness to adopt a culture of experimentation, to accept that a slightly better version of mediocre won't command the customer's attention and that it is actually riskier to maintain the status quo than to forge out into bold new directions.”