Location Moved RH From Quirky to Luxury

Location Moved RH From Quirky to Luxury

March 25, 2021

Homeware store RH has built its brand on luxury multichannel retail offerings.

Location is key to establishing luxury. Historic buildings with large dramatic stores topped with upscale restaurants establish the brand identity.

RH also carries substantial inventory, as evidenced by large catalogs reminiscent of pre-internet days.

Video Spotlight: 

This post is based on the CNBC article, How once-quirky homeware store RH became a skyrocketing luxury stock, by Robert Ferris,  February 17, 2021, and the YouTube videos in the Spotlight. Image source: Shutterstock / AlexRoz

Discussion Questions:

1.  Describe how the servicescape at RH locations influences the service-profit chain.

Guidance: Students should observe that RH creates a leisurely shopping experience. The atmosphere is dramatic and luxurious.  The locations evoke a sense of history and elegance from days gone by.  The restaurants allow for a longer shopping day making a trip to RH an experience to enjoy rather than endure.

Students should be directed to consider how they would feel as employees at Continue reading