Rent the Runway's “Era of Extra” sees extra items added to every subscription shipment
Rent the Runway (RTR), the world’s first and largest shared designer closet, has announced that it is adding an extra item to every shipment of its rental subscription program.
This is the first move in what the 2009-founded company is calling its “Era of Extra”, which focuses on investment in the customer. Subscribers who are currently in Rent the Runway’s most popular 8-item, 2-swap plan will now receive 10 items per month - the equivalent of 25% more for the same price.
Scarlett O’Sullivan, Chief Financial Officer, commented: "The significant improvements we have driven in our gross margin and continued fulfillment and inventory acquisition efficiencies allow us to provide this value to customers with minimal impact on our gross margins."
This latest effort is one of many RTR plans to introduce in fiscal 2023 and beyond to reinvest in and reimagine the customer experience by delivering even greater value to subscribers. Rent the Runway will provide more details about the anticipated impact of this launch along with its Q4 and fiscal year 2022 results next month.
Jennifer Hyman, Co-founder and CEO, added: "We believe that there is strategic value in giving her more items in her subscription, because we have seen from years of testing that providing an additional item drives higher loyalty and engagement.
"Especially at a time when consumers are doing the math on what they spend and many companies are taking away rather than giving back, we are confident that this is the right move for our customers and for our business. The more items she receives from RTR, the more she wears. When she rents more frequently, we believe that she is more likely to widen her use cases, share RTR more with her friends and be a subscriber longer."
The “Era of Extra” will come to life in a marketing campaign launching today. The centrepiece of this initiative is the company's brand ambassadors, who will discuss the launch across social media platforms including Instagram and TikTok.
This month, RTR also plans to introduce new product features such as being able to rent a complete outfit as styled on its website, as well as introducing new designers.
