August 01, 2022
Saks Off 5th hat partner with Rent The Runway to sell previously worn and rented fashion through its website, becoming the first off-price supplier to enter the resale market.
Off 5th buys products from Rent the Runway inventory to resell. A dedicated used car section on SaksOFF5TH.com will highlight 60 designer brands from Rent the Runway’s audited inventory with promised savings of up to 85 percent off original manufacturer’s suggested prices.
The partnership extends Off 5TH’s push into the resale market, which is growing twice as fast as the first-hand market. Off 5th in 2020 has partnered with LXR, a Montreal-based company that retails and wholesales vintage luxury products to sell used handbags.
A recent survey of Off 5th customers found that more than 70 percent have previously purchased used clothing, shoes or accessories and 80 percent of these customers want to buy used clothing, shoes or accessories directly from Off 5th.
The deal adds new brands not previously stocked by Off 5th, including BA$SH, Thakoon Collective, Marissa Webb, Prabal Garung and Adam Lippes Collective, and expands the range of existing brands including Equipment, Tanya Taylor and Derek Lam 10 crosby The extended brands feature many that resonate with younger consumers.
“Our core customer is a ‘trend follower,’ who is actually a younger customer who loves fashion and emerging luxury brands,” said Paige Thomas, President and CEO of Off 5th Vogue shop.
With a used option, Off 5th can also appeal to customers who think about sustainability. Off 5th may look into selling used cars in store in the future.
When asked whether selling used goods would cannibalize sales of new goods, Mr Thomas said WWD, “I do not believe that. Our customers expect both from us.”
The partnership helps Rent the Runway reach new customers.
Rent the Runway’s sourcing model also aligns closely with Off 5th’s, as it buys directly from designer brands, unlike other resale models that buy from individual consumers. Jennifer Hyman, CEO and co-founder of Rent the Runway, narrates forbes“When you shop in resale on our platform, it feels more like a traditional luxury retail experience because we have a large and comprehensive inventory.”
DISCUSSION QUESTIONS: Does reselling make sense for off-price retailers? Does partnering with Rent The Runway bring more benefits than risks for Saks Off 5th?
“For Off 5th, this makes sense – it caters to their current demographic and expands their market to reach sustainability-minded buyers while also diversifying their model.”
“It’s a way to support sustainability, keep prices down, and give consumers more options than could align with their values.”
“The target markets for Off 5th and RTR are very similar, so it’s a perfect match.”