Popular clothing brands are beginning to offer the option of renting clothes for a small monthly fee. Brands including Bloomingdale’s, Banana Republic and Urban Outfitters are picking up on this trend. Some footwear chains are also considering taking part in the new fashion trend.
Buying a new outfit for every occasion can leave many in a financial burden and also consumer guilt. CEO and co-founder of Rent the Runway, Jeniffer Hyman said: “You no longer have to buy into the myth of continuous consumption and that there’s pride in wearing something as opposed to pride in owning something.”
Many clothing apps like Poshmark, The Real Real and Mercari are very popular because they are recycled and sold at lower prices than the retail stores. These popular apps have the choice of competing with name brands or participating with them. According to ABC news, “JCPenny and Macy’s, for instance, have partnered with ThredUp to sell gently-worn clothes in a couple dozen locations. Nordstrom is testing resale at its women’s flagship store in Manhattan and online.”
This may cause a large decrease in retail store prices, leaving many companies no choice but to drop their prices in order to compete with the clothing rentals. Lower priced discount stores could also be left going bankrupt because their prices are already discounted. Cutting their, already reduced, prices wouldn’t be beneficial for many stores.
The new rental program has the potential to flourish, however, for some clothing retailers it could cause a decline in profits. Companies must hire enough employees to ensure that all clothing items are cleaned and in proper shape when returned from renters. This would ultimately lead to more money being spent on running the program. The question is, is it worth it financially for most businesses?
Many shoppers dread returning items to stores because they need to find their receipts and keep track of when they bought them. Because of this, retail stores will have to create an in-store drop off location where items can be returned hassle-free, without receipts. It will be interesting to see how successful the renting fad will be, because of the hassle of sending back items.
An unhappy customer, Elizabeth Kashin, says she tried Urban Outfitters’ new rental service last month. She never received her package of six items but was charged anyway. After contacting customer service via social media, she got another package but said the clothes didn’t look clean. “I can go to a second-hand store to get a better experience,” she said.
The rent the runway program is still in works as many are left to wonder if it will have long term success and if it will be offered in more retail stores. Some supporters of the rental program are very happy with the new program and believe it is something they could continue to use in the future.
Looks like the fashion industry is starting to evolve into a “go-green” vibe.
