Entering the $33 billion resale market, Rent the Runway undergoes major changes

Rent the Runway is expanding into resale, a major evolution for the fashion rental platform.

Consumers will soon be able to buy second-hand designer clothes from the company, in addition to renting them , without the need for a membership, as Rent the Runway looks to expand its reach and offer more viable entry points for shoppers.

The company said that entering the resale market provides another growth engine and more fully realizes our value proposition . Compared to 15 months ago, the number of customers coming to Rent the Runway for sustainable fashion solutions has tripled, indicating that shoppers' interest in adding secondhand clothing to their wardrobes is growing.

With the launch, Rent the Runway is positioning itself as a closer competitor to established resale marketplaces like Poshmark, ThredUp, The RealReal and StockX, which is known for launching coveted sneakers and is expected to hit stores later this year. E -commerce marketplace Etsy announced Wednesday that it would acquire second-hand fashion app Depop for $1.62 billion.

According to GlobalData, the total value of the U.S. resale market will exceed $33 billion by the end of this year and is expected to reach $64 billion by 2024.

Analysts say saving on apparel, accessories and home goods could be a more attractive value proposition in the wake of the health crisis, especially as Americans look to clean out their closets to make room for new styles, and possibly new sizes.

Rent the Runway said demand for crops is four times higher so far this year compared to all of 2019. And it's not just from younger customers ; demand for skimpy tops from women over 35 is three times 2019 levels.

In the U.S., searches for items with cutouts increased 44 percent. The company said shipments of short mini skirts have doubled from two years ago.

Nuuly, the fashion subscription platform Urban Outfitters launched in 2019, is seeing similar, promising trends in its business. Nuuly said site traffic and rentals were up 25% in April from March, with dresses accounting for 32% of rental items, up from 18% in April last year.

Online resale is a small but rapidly growing market that relevant sellers can focus on.

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