ATLANTA -- Construction should start soon on a new flagship Restoration Hardware store in Buckhead.
The luxury home furnishings retailer is "very close" to breaking ground on the six-story store at the former ESPN Zone building, said CEO Carlos Alberini in an April 18 call with analysts.
Restoration Hardware Holdings Inc. plans to build a "full line design gallery," its new store concept, which is larger than others to accommodate more furniture including its small spaces collection and products for babies and children.
"This gallery is our best expression of the Restoration Hardware brand to date and represents the next evolution of our customer experience," Alberini said.
He said the company has less than one percent of the $143 billion home furnishings market. Larger stores with more products are a means to grow its market share.
"The expansion of our assortment has enabled us to drive significant growth, but less than 20 percent of our current assortment is displayed in our retail galleries today. Less than 15 percent, if we include our bath, baby and child product," Alberini said.
"The bottom line is this, today we have an assortment with revenue potential that could be more than three times as large as our business today, but the assortment is flat in our undersized real estate portfolio. The real estate transformation into our full line design gallery concept is the key to unlocking the value of our assortment, and it remains our highest priority."
Restoration Hardware has eyed a store at 3030 Peachtree Road for months.
Last May, Atlanta Business Chronicle reported the company was interested in the former ESPN zone building, which has sat vacant for more than two years.