Rent the Runway, the e-commerce apparel rental company, anticipates increased variety and affordability to support it in maintaining the recent momentum it has achieved in expanding its number of active subscribers.
According to a 17th June report, the clothing rental company’s active subscriber count increased by 23% to surpass 147,000 during the quarter that concluded on 30th April.
Sid Thacker, the chief financial officer of Rent the Runway, said that the firm is investing more on inventory than it has ever done before because it believes that providing more brands and styles will keep subscribers interested.
Rent the Runway is entering into additional collaborations with labels that either develop clothing specifically for the firm or supply clothing at no cost or at a reduced cost in exchange for a portion of the rental revenue in order to cut the cost of expanding its inventory.
Furthermore, Thacker stated that in order to skirt tariff-driven price hikes, buyers would decide to rent clothing instead of purchasing it. Although the labels Rent the Runway collaborates with might raise their pricing in reaction to the taxes, the company is not directly exposed to tariffs.
