Neiman Marcus will open a Rent The Runway boutique in its San Francisco store on Friday, and more will follow next year.
Rent The Runway
The US-based premium department store will open a 3,000 sq ft space to showcase a rotating selection of clothes and accessories that shoppers can rent, alongside complementary items from Neiman Marcus.
“Partnering with Rent the Runway’s innovative model combined with their affinity amongst millennials provides an exciting opportunity for us,” said Karen Katz, president and chief executive of Neiman Marcus Group. “Together we’re helping the next generation of luxury consumers discover and fall in love with designer fashion.”
“We applaud Neiman Marcus for their bold acceptance of our unique model in the interest of catering to the shifting needs and expectations of the modern woman,” said Jennifer Hyman, co-founder and chief executive of Rent the Runway. “We believe that our partnership marks a major structural change within the retail industry, demonstrating that renting is a smart complement to ownership in an increasingly access-oriented world.”
Rent the Runway was launched online in 2009 by Harvard Business School graduates Jennifer Hyman and Jennifer Fleiss. It plans to have seven bricks-and-mortar stores before the end of the year in cities including Chicago, New York City, Washington DC and Las Vegas.
Rent the Runway has raised more than $126m (£100m) in venture capital and has more than 5 million members across the US.
In March, it launched an unlimited service for a flat monthly fee of $139 (£111) from more than 350 designers including Jason Wu, Marni, Tory Burch and Theory. Shoppers can select three items and keep them for as long as they want or swap any or all of them out for new selections. There is no limit to the number of times items can be swapped and the subscription includes shipping, dry cleaning and insurance.
It comes as this week shopping centre developer Westfield revealed a growing appetite for clothing rental services in the UK.
Its How We Shop Now report found there is a potential market for clothes rental worth £923m and more than 25% of Londoners would like to rent clothes, creating an untapped market of £390m in the capital.