Rent the Runway adds kids department

Business of Fashion has reported that Rent the Runway will be launching kids apparel for rental. The initial offering of kids rentals will include Fendi, Chloé, Little Marc Jacobs, and Stella McCartney. Children's is the latest category that Rent the Runway has expanded into as they work to broaden the customer base of the 159 dollar a month unlimited subscription box. Current members can use their slots for the new product offerings, but additional slots will be available to be purchased for 39 dollars.

The expansion into childrenswear marks the first major business initiative from Rent the Runway since they announced a 125 million dollar fundraising round on March 20, valuing the company at 1 billion dollars. According to a statement the company's founder Jennifer Hyman made to Business of Fashion, they also have plans to launch streetwear next. However, fashion isn't the only stream of revenue for Rent the Runway.

The company has also partnered with West Elm to offer home decor rentals. In addition, they are also getting into the business of co-owning some of their own products. They recently launched an initiative called The Design Collective designed by Derek Lam, Prabal Gurung, and Jason Wu, where revenue will be shared between Rent the Runway and the designers.

“We really think we’re creating a modern, sustainable way to live,” Hyman said to Business of Fashion. “The goal here is to create the Amazon Prime of rental.”

The expectation is that Rent the Runway will go public eventually, and with a billion dollar valuation, they would be one of the hottest retail stocks on the market. With the stock market in a state of stability, an IPO could be expected from the Rent the Runway sooner rather than later.

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photo: via renttherunway.com