Clothing subscription company Rent the Runway is pulling out of its retail stores, while department store chain Selfridges has said it is looking to try out new retail models including rental, resell and repair.
Rent the Runway will shut all of its stores for good; the rental retailer told CNBC it is making the decision in order to focus its investments on digital and add more drop boxes for customers.
Rent the Runway’s stores in Chicago, Los Angeles, San Francisco and Washington, D.C. will be closed, while it will convert its New York City flagship into a permanent drop-off site for return clothing.
From office attire to ball gowns, Rent the Runway’s clothing rentals have been impacted from restrictions around COVID-19 reducing events consumers would need these clothes for. In March, the retailer laid off its entire retail staff via Zoom, according to the The Verge. At the time, all of its stores were closed due to the pandemic. During the Zoom meeting, a company executive said the business has been forced to “dramatically reassess” its current operations in order to sustain the business, reportedly.