The store on King Street is closing as of Jan. 21.
The store was packed on Monday morning as customers flocked to enjoy the first day of a 50% off sale as the store seeks to clear out its goods.
Stephanie Landrum of the Alexandria Economic Development Partnership said the city has had a lot of interest from national retailers for the highly coveted space near Washington St. although it's not clear why the store is vacating Old Town.
"We are conducting interviews with Restoration Hardware and all the parties involved to determine why they are leaving," she said.
A store clerk on Monday said she believed that the store was closing due to a lower volume of sales and traffic than the company's nearby stores in Tysons Corner and Georgetown.
As of July 30, the California-based company operated 87 retail stores and 10 outlet stores throughout the United States and Canada, according to its website.