Covid Sent Rent The Runway To The Brink. Now The Fashion Business Is Ready For The Reopening Boom

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Thanks to tough pandemic pivots, Rent the Runway is now ready for liftoff in the reopening world. The company’s roller-coaster year offers crucial lessons about the power of painful decisions, the importance of nimble strategic changes—and the fickle, unpredictable nature of customer psychology.

In early February 2020, Jennifer Hyman, the cofounder and CEO of Rent the Runway, was in build mode.

Covid was on her radar, too—but only as a possible inventory headache rather than a world-shaking pandemic. As March approached, a slowdown in new customers gave her concern. Then, on March 8, the U.S. began to shut down. Overnight, Americans found themselves all dressed up with nowhere to go. Thanks to tough pandemic pivots, Rent the Runway is now ready for liftoff in the reopening world. Hyman says subscribers have climbed nearly 100% from the May 2020 lows. While the company doesn’t share subscriber or sales numbers, the jump would put the subscription service at around 60% of pre-Covid levels—all while most office workers remain at home and top markets like New York and California are just now opening.

With business stabilized, Hyman is back in the growth mindset. In May, she added A-list actor and Goop founder Gwyneth Paltrow to her board. “Watching Jenn build this idea into a game-changing business, even through the challenges of Covid, has further solidified my admiration for her vision and execution,” Paltrow said via email. “I’m thrilled to join the board at such a dynamic time for the business and help Jenn usher RTR into its next phase.

Other moves were more painful. With demand collapsing, Hyman laid off 15% of the company. Another 30% were given three-month furloughs . The company also instituted a three-month salary cut across the board and paused advertising for the remainder of the year. Hyman had to ensure that Rent the Runway would outlast the pandemic shutdown—no matter how long it went.

 

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Covid Sent Rent The Runway To The Brink. Now The Fashion Business Is Ready For The Reopening BoomThanks to tough pandemic pivots, Rent the Runway is now ready for liftoff in the reopening world. The company’s roller-coaster year offers crucial lessons about the power of painful decisions, the importance of nimble strategic changes—and the fickle, unpredictable nature of customer psychology. They want a boom and got a fizzle instead
Herkunft: Forbes - 🏆 394. / 53 Weiterlesen »

Covid Sent Rent The Runway To The Brink. Now The Fashion Business Is Ready For The Reopening BoomThanks to tough pandemic pivots, Rent the Runway is now ready for liftoff in the reopening world. The company’s roller-coaster year offers crucial lessons about the power of painful decisions, the importance of nimble strategic changes—and the fickle, unpredictable nature of customer psychology. They want a boom and got a fizzle instead
Herkunft: Forbes - 🏆 394. / 53 Weiterlesen »