Rapid Response: Fashioning a greener closet, w/Rent the Runway's Jenn Hyman

Retail Strategy

Rent the Runway has significantly adjusted its retail strategy, focusing on expanding pickup and drop-off locations rather than traditional stores. Jenn Hyman explains that this shift was driven by the realization that most in-store transactions were for pickups and drop-offs, making stores less efficient. The company also launched secondhand purchases for non-members, tapping into the growing secondhand economy and sustainability trends 1.

We had actually seen in 2019 that 90% of our transactions in our stores were customers who were picking up or dropping off their orders.

--- Jenn Hyman

Subscription remains the core business, with over 75% of revenue coming from it. Hyman emphasizes that Rent the Runway's unlimited closet offers unparalleled freedom and flexibility compared to single-brand subscriptions 2.

   

Consumer Shifts

Consumer behavior has shifted towards sustainability and experiences over ownership, a trend accelerated by the pandemic. Jenn Hyman notes that sustainability is now the second most common reason for subscribing to Rent the Runway. The pandemic prompted people to clear out clutter and rethink their consumption habits, favoring experiences that bring joy over accumulating more stuff 3.

I think that we're coming out of this pandemic with a recognition that experiences are, in fact, more important than ownership.

--- Jenn Hyman

Hyman also highlights the importance of transparency and frequent communication with the team during the pandemic, which helped the company navigate through the crisis and prepare for a post-COVID world 4.