Rent the Runway is eliminating the unlimited rentals option as it overhauls its membership plans, according to CNBC. CEO Jenn Hyman stated that the changes have been in the works for 18 months, and discussions started before COVID-19.
However, the pandemic has accelerated the decision-making process at the company, which has been adjusting to new shopping habits. Other changes have included permanently closing its stores and expanding its network of drop boxes as commerce becomes more digital.
The current unlimited subscription costs $159 per month, and members will have until early 2021 to phase out their current plan and choose a new one. Only 6% of Rent the Runway’s unlimited customers exchange more than 16 pieces per month, and they will still have the ability to add extra items for a fee.
Eliminating unlimited rentals will help Rent the Runway control costs, ensure faster deliveries and cut down on carbon emissions with fewer deliveries, according to Hyman. The new subscription structure will now consist of three tiers:
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- A 16-item plan for $199 per month that allows four shipments of four items each month;
- An eight-item plan for $135 per month; and
- A four-item plan for $89 per month that offers a limited selection of items, including casual and work wear.
“We’ve seen 80% of the people who have joined us through COVID are choosing four or eight items per month,” Hyman said in an interview with CNBC. “We think it’s important for members to pay for their usage. Paying per usage is also the most financially viable decision for long-term.”
