Open For New Business

The Sharing Economy Has Come To Clothiers Ann Taylor And Express.

- Diana Pearl

Consumers live in a world where they can rent someone else’s apartment for a weekend, or furniture, or luxury handbags or even a bridesmaid—and now, shoppers can add clothing from their favorite mass retailers to that list.

More and more, subscription services that allow customers to rent a certain number of garments for a fixed cost per month are popping up in the retail space. Though critics say these services could cannibalize an established retailer’s business, turning buyers into renters, early reports show the opposite, according to Christine Hunsicker, founder and CEO of CaaStle, the platform that powers many of these services. She said that any challenges are mostly offset by a rental program’s many benefits: to attract new customers, keep current ones interested and be able to better produce inventory to fit demand.

And as many retailers continue to flounder in the face of Amazon and the boom of direct-to-consumer businesses, the option of rental presents a new way to lure customers back to their brands.