The co-founder of Rent The Runway is considering going public with the company. The website that lets women rent dresses announced that it raised $24.4 million. This money may go to building showrooms so customers can actually try on the dress before renting.
These new showrooms may be a threat to department stores that thrive on the evening gowns that they sell to girls and women for a variety of events.
Rent The Runway allows women to do what they already do with evening gowns; return them after the event. Some department stores have even place and no-return policy on evening gowns. The website also has dresses as cheap as $30 which opens up a large consumer base.
“Department stores might already be trying to fight the site. Caroline McCarthy, director of Live Content at Quartz, told us that she’s spoken with designers who said department stores and boutiques have threatened to drop them if they are featured on Rent The Runway.”
The future is bright for Rent The Runway and department stores may take a hit. (businessinsider.com)