Rent the Runway Hikes Prices Due to Inflation and Tariffs

Starting next month, it will cost more to Rent the Runway.

The clothing rental company notified subscribers this week about a pending price increase to its subscription of approximately $2 per item, Glossy reported Thursday (July 17).

With these new changes — set to go into effect Aug. 1 — someone paying $119 to rent five styles per month will pay $129, an 8.4% increase, the report said. Customers renting 20 items each month will see their plans go up 17%, from $235 to $265.

“Over the last several years, we’ve watched steep price increases unfurl across the board in fashion due to inflationary pressures and tariffs,” the company said in a letter, per the report. “We … believe that this change allows us to keep delivering the most exceptional experience possible while remaining the best deal in fashion.”

“We know that quality fashion is becoming increasingly expensive, and being able to rent fashion you love for your everyday life is more important than ever,” it added, according to the report.

The company last raised prices in 2022, the report said. It also updated its membership tiers in 2023.

Rent the Runway is giving members the opportunity to pause or cancel their subscriptions, although doing so would mean forfeiting their rewards status, according to the report.

Meanwhile, Rent the Runway Chief Financial Officer Sid Thacker said last month the company would make its largest-ever investment in inventory, following a quarter in which its subscriber base grew by 23% to reach 147,000.

Thacker said the inventory investment would allow Rent the Runway to offer more brands and styles to retain the interest of subscribers. While the company didn’t share how much it was investing in inventory, it said it plans to double its inventory this year.

Inflation and tariffs are leading many companies to pass rising costs on to customers. Data from the Bureau of Labor Statistics’ Consumer Price Index showed consumer prices up 0.3% in June. The annual inflationary pace was 2.7%

PYMNTS Intelligence found that one-third of American shoppers have been told by retailers that the government’s tariffs are behind the rising costs of everyday goods.