Luxury home furnishings retailer Perigold is exploring vacant department store locations for its physical retail expansion, following the 2025 opening of its first two brick-and-mortar stores.
This development in the company's real estate approach comes as Perigold reports a period of significant growth, even as the broader luxury market experiences a slowdown. According to a report from glossy.co, the Wayfair-launched brand is navigating the complexities of finding suitable large-format retail spaces. The consideration of former department stores highlights a potential avenue for growth, yet it is tempered by specific spatial requirements and a stated pause on new openings for the immediate future.
What We Know So Far
- Perigold, which launched in 2017, has reported "very strong double-digit growth" since its inception, according to glossy.co.
- The retailer opened its first two physical stores in 2025, with locations in Houston, Texas, and West Palm Beach, Florida.
- The company has reportedly explored vacant department store spaces as "interesting" options for future expansion.
- Many of these department store locations, including one 75,000-square-foot space, have been deemed too large for the brand's current needs, glossy.co reports.
- Perigold has no new store openings planned for the 2026 calendar year, according to the same report.
Perigold Physical Store Expansion Strategy
Perigold's initial physical retail locations include a 20,000-square-foot store in Houston and a 30,000-square-foot store in West Palm Beach. These dimensions establish the scale for the brand's intended physical presence, creating showrooms to display its extensive collection of high-end home furnishings. This shift from a digital-native platform to tangible retail is a critical component of its evolving market strategy.
Perigold has enjoyed "very strong double-digit growth since its launch in 2017," a representative stated to glossy.co. This notable performance occurred despite a hard-hit home furnishings market and a general cooling in the overall luxury sector. The brand's push into physical retail aims to build on this momentum by increasing brand visibility and customer engagement in key affluent markets. The company acknowledges its position, noting, "we also have a huge amount of opportunity in the fact that we’re still relatively unknown when it comes to luxury home [retailers]."
Capitalizing on Vacant Department Stores: Perigold's Approach
Perigold considers the vast inventory of vacant department store locations across the country for new showrooms, valuing their large, open floor plans. However, the primary challenge, identified in the glossy.co report, is one of scale. While these locations are described as "interesting" possibilities, their sheer size often exceeds Perigold's operational requirements. For instance, a recently considered 75,000-square-foot option was deemed too large, suggesting the brand seeks a specific size that balances impressive scale with manageable operational costs.
Perigold's careful site selection reflects a deliberate and measured strategy. The brand is not simply acquiring available space; instead, it seeks locations that align with a specific retail model, likely between 20,000 and 30,000 square feet, based on its initial openings. This contrasts with the cavernous, multi-level layouts typical of former anchor tenants in shopping malls. The available inventory of vacant stores often does not align with the precise needs of new-format luxury brands, highlighting the complexities luxury retailers face in adapting existing commercial real estate for modern, curated shopping experiences.
What We Know About Next Steps
For the immediate future of its physical expansion, Perigold has confirmed a temporary pause. According to the report from glossy.co, there are no new store openings planned for the 2026 calendar year. This decision suggests a period of assessment and strategic planning following the launch of its first two locations.
The company has not announced a timeline for when its store expansion might resume, nor has it identified specific markets for future consideration. The current focus remains on the performance of its Houston and West Palm Beach stores while continuing to evaluate real estate opportunities, including the aforementioned department store spaces. Any subsequent moves will likely be informed by the operational lessons and market reception of these initial ventures into brick-and-mortar retail.
