Renting Fashion: A Growing Trend Amid Inflation — Retail Bum

Not too long ago, clothing rental services were seeing a decline in demand as consumers hunkered down at homes and stopped engaging in social events. But now, with businesses ditching remote work policies and inflation impacting consumers’ spending abilities, fashion rental platforms are once again having a moment.

Rent the Runway, for example, is experiencing a surge in its number of active subscribers, reaching a record high of 141,205 in April. Meanwhile, the Black Tux, a company specializing in renting formalwear, also reported a 35% increase in revenue compared to pre-pandemic levels. And, Nuuly, which Urban Outfitters owns, expects 200,000 subscribers by the end of 2023.

However, as inflation worsens and consumer spending habits shift due to factors such as rising interest rates and decreasing savings, rental services face the challenge of retaining their customers while also dealing with their own rising costs. This makes it essential for them to provide customers with greater value for their money.

But that does not come without its challenges.

For instance, in an effort to maintain operations, Nuuly recently announced that its standard monthly plan would increase by $10, from $88 to $98, for new subscribers starting April 26, 2023. Existing subscribers will…