Business model
The company offers clothes from over 700 designers, in sizes ranging from 00 to 22. In addition to garments for events, the company also rents everyday clothing, children's clothing, ski apparel, home décor, and accessories, including jewelry and handbags.[22][23][24] The company offers several subscription plans at varying prices, that can be customized. According to the company, as of 2019 subscriptions account for 75% of its business.[25]
Customers can also rent clothes for a 4- or 8-day period without signing up for a subscription as part of the company's Reserve program.[26] Each rental includes a back-up size at no additional cost to ensure it fits. Customers can get a second style for an additional fee. Rental prices include the dry cleaning and care of the garments. In 2021, the company began allowing anyone to buy items secondhand from its site without a membership.[27] Subscribers have had the option to buy items they rented since 2016.[26]
Rent the Runway had physical locations in New York City, Washington, D.C., Chicago, San Francisco, and Los Angeles,[28] where customers could work with a personal stylist, and either take items directly with them or book dresses and accessories for future events. In August 2020, the company announced it would be closing all five of its retail locations, in order to focus on digital subscriptions, and would be adding more drop box locations.[29][30]
According to the company, it has the biggest dry cleaning operation in the United States and possibly the world, processing 2,000 items per hour (as of 2018).[3][31] The company has distribution warehouses in Secaucus, New Jersey, and Arlington, Texas.[32]
In September 2019, Rent the Runway experienced an 11-day operational glitch and temporarily stopped accepting new customers.[33] The company resumed regular operations on October 15, 2019, after implementing system upgrades.[34]
