Briefcase

Rent the Runway storefront coming

Rent the Runway Inc. will launch an online storefront with Amazon.com Inc., expanding the clothing rental company’s reach beyond the subscription business model.

The Amazon Fashion platform will feature previously worn styles from designers that Rent the Runway already works with, as well as new and unworn designs. Rent the Runway said revenue from the partnership, which it recognized in advance of the launch, contributed about $4.6 million to adjusted earnings before interest, taxes, depreciation and amortization in the quarter ended Oct. 31.

Rent the Runway suffered from a drop in subscribers during the pandemic, prompting a restructuring plan in September that included dismissing about a quarter of its nonhourly employees. Since then, the clothing rental company has added new subscribers and in December boosted its annual revenue outlook, noting “considerable progress” on consumer initiatives.

Shares of the company fell significantly in the last three months of 2022 but have rebounded since the better-than-expected earnings report last month.

Labor shortage on decline

The chronic labor shortage in the U.S. and European consumer-goods industry is likely over, according to a Deloitte survey.

More than half of executives polled by the consulting firm say that the labor shortages of recent years will end in six months – or have already resolved. Almost 70% of respondents said they won’t increase their rate of hiring and might even curb it. One in four plan layoffs, the survey found.

Companies across the spectrum struggled to find enough workers to fill a demand surge for their products early in the pandemic. But inflation has eroded shoppers’ ability to keep spending, sparking declines in sales for many firms. At the same time, the easing of pandemic restrictions has consumers spending once again on experiences such as travel and eating out.

Expectations of deteriorating economic conditions are also forcing companies to rethink their head count. Layoffs have already hit tech and finance, while McDonald’s also recently announced it would be cutting jobs.

From wire reports