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The RealReal Feb. 22 , 2021 Dear Stockholders , The RealReal Q4 2020 Stockholder Letter To describe 2020 as a challenging year is an understatement . We are thankful to our entire team for their dedication and innovation and for moving the company forward during these unprecedented times . We'd especially like to recognize the teams on the front lines in our authentication centers and retail locations . Thank you for your tireless work and commitment to The RealReal in 2020. We believe that as we come out of COVID , the tailwinds that have driven the outperformance of many e - commerce companies will slow . In contrast , a return to normalcy could drive an acceleration of growth in our marketplace . This growth would help us realize efficiencies in our operations and leverage across our cost structure as we march toward profitability . Last year , we embarked on several strategic initiatives that will enable us to emerge a stronger company , better positioning us to profitably capitalize on the large luxury resale opportunity ahead . These initiatives include : • • Neighborhood Stores - We plan to open 10 neighborhood stores by the end of Q2 . Given early results from our newest stores , we are optimistic that this strategy will contribute to deeply engaging with more of our most valuable customers and significantly unlock supply in these markets more efficiently than marketing investments alone . The RealReal B2B Vendor Program - Our vendor program has improved our ability to source high - value supply , and we plan to continue to invest in people , processes and technology to support its growth . Q4 vendor channel gross merchandise volume ( GMV ) increased 80 % Y / Y , marking the third consecutive quarter of vendor GMV growth acceleration . . Arizona Authentication Center - We accelerated the timeline for opening our new Arizona facility to summer 2021 to support our next phase of growth . It will help us improve the consignor and buyer experience by reducing shipping times , while reducing shipping expenses and our average fixed cost per order as we scale . When we provided our last update in early December , November supply and new buyer growth were trending positively and our GMV was gradually recovering . This recovery continued over the balance of Q4 with December GMV growth accelerating approximately 900bps M / M to 6 % Y / Y . 1