Unusual bedmates: Neiman Marcus joins up with digital fashion disruptor
It’s an odd partnership — at least at first glance.
Neiman Marcus has entered into a partnership with Rent the Runway, which lets shoppers rent pricey designer dresses as opposed to buying them (at a luxe store like Neiman Marcus).
The agreement calls for Rent the Runway to open in-store shops at select Neiman Marcus locations, with the first opening on Nov. 18, in San Francisco. (San Francisco is home to one of Rent the Runway’s highest concentration of customers.) More locations are planned for 2017.
Founded in 2009 as an online startup, Rent the Runway has expanded to brick-and-mortar, and currently has freestanding stores in Chicago, New York City, Washington, D.C., Los Angeles and Las Vegas. It has raised over $126 million in venture capital and has 6 million “members” across the United States. It has found that the average order value of its stores is about 20% higher than an online order.
The deal with Neiman Marcus gives Rent the Runway a low cost model to expand its physical presence, while giving the department store retailer a way to attract the coveted young millennials who make up Runway’s core base — and hopefully get them to ring up some sales in the rest of the store.
“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 CEO 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.”
The in-store Runway concept at Neiman Marcus will take up about 3,000- sq. ft. and feature a rotating selection of designer clothing and accessories, all available to rent. The inventory will be curated and replenished daily from Rent the Runway’s online inventory of over 400 designers. It will also be complemented by a curated selection of product from the department store retailer, including shoes, handbags, undergarments, and cosmetics.
The Runway shop will also offer:
• Styling by Appointment: Customers can book a session with a Rent the Runway stylist, who will personally select items for the customer based off of an online style assessment that details her lifestyle, upcoming event(s), style preferences, and more.
• In-App Concierge Service: For last minute needs, customers will be able to use the Rent the Runway app to view styles currently stocked in the store and available to rent that same day. The Rent the Runway app also allows customers to chat real-time with an in-store stylist to ask questions, book a rental, and get inventory couriered to her.
Customers can also use the in-app chat feature to receive VIP service. Before her visit, the customer can ask a stylist to prepare a dressing room with specific styles.
• RTR Bar: The RTR Bar is where customers go to receive a variety of in-person services, from quick styling advice to help with an existing order to in-store pickup and drop-off. San Francisco-area shoppers can choose to pick up their online order in person for free, and swap out an item for something in store. Customers can return their rentals directly to the store or send them back via the prepaid, eco-friendly, reusable garment bag
“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 CEO of Neiman Marcus Group. “Together we’re helping the next generation of luxury consumers discover and fall in love with designer fashion.”