rental

What Rent the Runway's Store Closures Mean for Clothing Rental Companies

Clothing rental services face an uncertain future.
article cover

Kelly Sullivan/Getty Images

less than 3 min read

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

A nationwide rain check on formal events has been a miracle for overbooked bridesmaids and a detriment to rental services: Rent the Runway is closing its five U.S. stores, CNBC reports.

Small footprint, big deal. Opening rental stores was supposed to introduce RTR to new members. But more than 90% of RTR store visitors stopped by only to pick up or return rentals they’d ordered online, the WSJ reports. So moving forward, RTR will...

  • Convert its former NYC flagship into a drop-off center.
  • Add more return drop-off boxes with retail partners like Nordstrom.

Revenue at RTR evaporated at the beginning of the pandemic, forcing the company to lay off its entire retail staff and cut costs by 51%. But some business has returned since lockdowns lifted in June, RTR President Anushka Salinas said.

Other rental businesses are a similarly mixed dressing bag: not because renters developed late-onset sharing allergies, but because there are fewer occasions requiring formalwear.

  • Le Tote’s bankruptcy filing noted that subscriptions declined during the pandemic.
  • Urban Outfitters has “aggressively reduced investments” in its rental platform Nuuly, despite its early success.

My takeaway: If rental survives, it’ll come from adopting quarantine-friendly or underserved categories. RTR recently moved into activewear rentals; Eloquii, a plus-size brand, introduced a rental program last week.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

R
B