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

  • 📰 Forbes
  • ⏱ Reading Time:
  • 78 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 35%
  • Publisher: 53%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

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.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

They want a boom and got a fizzle instead

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What Business Leaders Can Learn From Retailers’ Response To CovidMany retailers have done the right things the right way at the right time during the pandemic, but others did not, and suffered for it. Executives of companies and organizations in all industries and professions can benefit by studying what retailers got right as much as from what they got wrong. wow
Source: Forbes - 🏆 394. / 53 Read more »