Fashion

Relaxation of restrictions on Covid-19 increases optimism in clothing rental services

Rental-mageddon seemed inevitable when Covid-19 wiped weddings, music festivals, and corporate conferences off the calendar in 2020. These IRL events could require multiple dress changes from zooms, not so much.

Closet check: Rental services took it hard knocks, but they have not been made obsolete. Closet stock companies told Retail Brew that over the past year consumers have moved from renting the track to renting their hallways at home.

At Nuuly, the rental service of Urban Outfitters, the top performers of 2020 included sweatshirts, joggers and waistless dresses. One of our sister brands, Free People, has an amazing casual assortment, so we were able to respond quickly, told us David Hayne, President of Nuuly and CTO at URBN.
Christine Hunsicker, CEO of rental technology platform CaaStle, told Retail Brew that tenants of her services develop the same occasional preferences as buyers.

Category verification: Joshua Luft, CEO of children’s subscription rental platform Everlasting Wardrobe, told Retail Brew that parenting demands for comfortable children’s clothing is steadily increasing across its 300+ brands.

Children grow up regardless of the prevailing trends, Luft said, and parents see rental as a way to dress their changing kids without spending a fortune.
Last year, brands sent their excess inventory to the Lufts platform for free. The goal: to use clothes they couldn’t sell to build brand awareness among rental customers.

Rental for men also gained momentum in 2020, Hunsicker told us so much that CaaStle extended its partnership with Express to include menswear in September. On average, [men] stay with the service longer and focus more on rotating parts, she said.

Hot summer rental

Renters are like us: after months in the same groutfit, they are finally ready to dress again. Rental service memberships are increasing alongside formal clothing sales and travel plans.

Hayne told us that Nuuly has noticed a huge improvement in subscriber numbers since the winter. Interest in dressier dresses is on the rise.
Luft said Everlasting Wardrobe has seen continued growth, although it has declined to provide a specific number of members.

Driving the trend: Rental services offer a real value proposition for consumers looking to dress without committing to a post-pandemic wardrobe, Hunsicker told us.

Jessica Ramrez, Retail Research Analyst at Jane Hali & Associates, added that as buyers become more concerned with sustainability, we believe rental and resale will continue to gain momentum with brands.

What Retailers Earn: Even throughout the pandemic, we have found that once consumers join a service, they are very loyal, Hunsicker said. And more loyalty = more consistent monthly income = better retention of electronic communications, regardless of the category.

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