Jennifer Hyman, Rent the Runway
Scott Mullin | CNBC
rent a runway Started selling high-end used clothes on Thursday Amazon As subscription-based startups continue to chase profitability.
Hundreds of items from the company’s “loved” collection, plus new, never-worn pieces from “design collectives,” are now available for purchase directly from Amazon through the virtual Rent the Runway storefront. became.
Over 35 brands, including Tory Sports, Rag and Bone, Tibi, Sita Mart, Kate Spade and more, are on sale at deep discounts.
Rent the Runway, where customers can rent designer clothing and accessories à la carte or on a recurring subscription, has struggled to make a profit since the Covid pandemic cut a hole in its business.
The company’s losses are steadily narrowing now that customers are back in the world and needing fresh clothes again, but it still reported a loss of $36.1 million in the third quarter of its fiscal year.
The company already has a partnership thread up and off-price banners Saks Off Fifth sells second-hand designer duds, while Amazon’s collaboration with a design collective line featuring exclusive pieces created by up-and-coming designers means retailers can It’s the first time I sell clothes that haven’t been sold yet. To wear.
Jennifer Hyman, CEO of Rent the Runway, said the relationship will be a “key driver” of the retailer’s growth. She said it contributed $4.6 million.
In an interview with CNBC, Hyman said, “Rent the Runway has seen a huge increase in brand awareness.” At the same time, it is an enhanced way to further monetize those units.”
The resale market and Amazon’s broad customer base offer a path to profitability, Hyman said.
The total resale market in the United States is expected to exceed $64 billion by the end of 2024, according to research firm GlobalData. A Boston Consulting Group study estimated that he is worth between $100 billion and $120 billion worldwide.
When the BCG study was released in October, resale items made up about 25% of second-hand buyers’ closets. By 2023, that number is expected to jump to 27%.
Overall, BCG expects resale to account for about 15% of the total luxury market by the end of 2023.
— CNBC’s Melissa Repko contributed to this article.
