For rental clothing, monthly subscription rates of US $ 90–US $ 240 may seem like a waste of money, leading some users to terminate their memberships. Companies, like Rent the Runway, are strategically relying on clothing from popular designers to make up for subscriber losses, while Stitch Fix is prioritising private brands to reduce inventory acquisition costs in order to attain profitability.
Economic instability and inflation are core factors, but limited style and size options are key concern for subscribers, as reported by the Wall Street Journal. In response to this, rental service businesses are expanding their style offerings to convince customers of the value of paying monthly fees for rented clothes.
Rent the Runway’s CEO, Jennifer Hyman, points to the decline in subscribers because of inventory issues and anticipates improvements in growth in 2024.
The industry is evolving with the entry of companies like Nuuly and Armoire in the rental subscription market, providing consumers with alternative options. As remote work becomes more prevalent, there’s a diminished emphasis on regular wardrobe updates and a decreased need for a variety of professional or formal attire.
