Jennifer Hyman, Rent the Runway
Scott Mill | cnbc
rent the runway Thursday started selling its second hand luxury clothing Amazon As the subscription-based startup continues to chase profitability.
Hundreds of items from the company’s “Pre-Loved” collection, as well as new, never-worn pieces from its “Design Collective,” can now be purchased directly from Amazon through the virtual Rent the Runway storefront.
Secondhand items from over 35 brands including Tory Sport, Rag & Bone, Tibi, Sita Mert and Kate Spade will be available at deeply discounted rates.
Rent the Runway, which lets customers rent designer clothes and accessories a la carte or through regular membership, has struggled to turn a profit ever since. covid pandemic cut a hole in its business.
The company’s losses are steadily narrowing now that customers are back in the world and new organizations are needed again, but for its fiscal third quarter, it still reported a loss of $36.1 million.
Already have a partnership with the company thredup and off-price banner Saks of Fifth to sell its used designer duds, but Amazon collaborated with its Design Collective line, which features exclusive pieces created by up-and-coming designers, marking the first time such a retailer has Will sell clothes that are not yet worn.
Runway CEO Jennifer Hyman said the relationship could be a “key engine” of growth for the retailer. the deal was completed during Company’s fiscal third quarter and contributed approximately $4.6 million to adjusted EBITDA during that period, the company said.
“It really brought wider brand awareness to Rent the Runway,” Hyman said in an interview with CNBC. “Launching programs with major retailers like Amazon is a great way to find a home for inventory leaving our rental ecosystem, while also further monetizing those units.”
The resale market, and Amazon’s broad customer base, provide a path to profitability, Hyman said.
The overall resale market in the US is on track to top $64 billion by the end of 2024According to research firm GlobalData. According to research, its value is estimated between $100 billion to $120 billion worldwide Boston Consulting Group,
When BCG’s research was published in October, resale products made up about 25% of older shoppers’ wardrobes. In 2023, this number is expected to increase to 27%.
Overall, BCG expects resale to comprise approximately 15% of the total luxury market by the end of 2023.
— CNBC’s Melissa Repko contributed to this article.