Rent the Runway Expands Fashion Subscription Service
Rent the Runway (RTR) is adding a membership option that costs less than $100 per month in an effort to make its fashion subscription service accessible to more shoppers. The New York-based clothing service partners with more than 500 brands and lets women rent pieces from its website and five physical locations either on a monthly basis or for special occasions. The new, less-expensive membership tier, called "RTR Update," allows shoppers to choose four pieces from RTR's selection of more than 200 brands every month, with free shipping, returns, dry cleaning and insurance included in the package. The monthly fee is $89. The company's current "RTR Unlimited" tier is also being revamped, with a price increase to $159 from $139 per month. Current members, however, will be locked in at the lower price "for life," RTR said. This package allows shoppers unlimited rentals throughout the month. RTR also rolled out its first national brand advertising campaign on Monday.
Total Retail's Take: With these moves, it's clear that RTR is hoping to extend its brand reach to a much wider audience. In addition to the RTR business, the expansion of the service will grow exposure for the brands, designers, and retailers it partners with. In fact, by partnering with more brands, RTR has seen 125 percent growth on its platform from a year ago, and expects to triple its subscription business by 2018.
