Rent the Runway, Nordstrom Expand Partnership
Rent the Runway, the clothing rental platform now valued at $1 billion, is expanding its partnership with Nordstrom. The two companies tell Fast Company exclusively that they will be blending their capabilities along many dimensions, including creating new products together and incorporating Nordstrom inventory into the Rent the Runway system. For Rent the Runway customers, the most immediate and obvious benefit is that they will be able to drop off their rentals at more Nordstrom locations. Earlier this year, Rent the Runway piloted a program where users could drop off their products at five Nordstrom stores. Starting today, 25 more Nordstrom stores will carry these drop boxes.
Total Retail's Take: The trend of digital-native brands and legacy brick-and-mortar retailers pairing up to leverage their combined strengths is seen again with this announcement from Rent the Runway and Nordstrom. With Rent the Runway expanding its assortment into workwear and everyday clothes, driven through a subscription model, the need for users to return items more quickly and easily has grown in importance. The deal with Nordstrom makes drop-offs more convenient, while providing additional foot traffic for the upscale department store chain. Rent the Runway's customers get a better experience, and Nordstrom gains valuable traffic — and a target demographic. A win-win for all parties involved. The next step in the partnership is incorporating Nordstrom's inventory into the RTR platform, as well as co-designed products based on the data they've acquired about the customers using the service.