Rent the Runway Seeks Profitability With Plans To Open Amazon Store — Retail Bum

Fashion rental platform Rent the Runway is planning to open an Amazon storefront as the company looks for a path to profitability.

The storefront will enable Amazon shoppers to buy pre-used clothing and accessories from 35 brands, including Kate Spade, rag & bone, sita murt, Tory Sport, and Tibi at deeply discounted rates.

The company expects the partnership to not only serve as a revenue booster but also help with brand awareness, as Amazon has a reach of nearly 176 million customers in the U.S.

“It really brings Rent the Runway much wider brand awareness,” said CEO Jenn Hyman in an interview with CNBC.

“Launching programs with major retailers like Amazon is a scaled way to find a home for inventory departing our rental ecosystem while also further monetizing those units.”

The launch of the service comes at a time when demand for luxury clothing is picking up as consumers have resumed socializing. While the company reported $36.1 million in losses in fiscal Q3, its losses have continued to shrink, CNBC reported.

Rent The Runway also has a partnership with ThredUp and Saks Off Fifth, which contributed nearly $4.6 million in Q3 revenue to adjusted EBIDTA. According to Boston Consulting Group, the resale market in the U.S. is on track to cross $64 billion in sales by the end of 2024.

Originally published at https://retailbum.com on January 12, 2023.