(AP) — Renting clothes could be the future of fashion — or it could just be a fad. But traditional retailers can no longer afford to wait on the sidelines to find out.
That’s why a growing number of them are now offering customers the option to rent clothes for a monthly fee instead of buying them. Bloomingdale’s, Banana Republic and Urban Outfitters are the latest to offer the services.
Now a booming $1 billion business, the clothing rental sector is expected to reach $2.5 billion by 2023, says research firm GlobalData. But for traditional retailers, the economics of renting affordable clothing pose significant challenges.