---
title: "Subscription-Based Services Rule Retail"
url: https://burnaze.com/article/09d914cb-330c-44ce-b5d6-0401c5d50f82
source: "1851 Franchise"
original_url: https://1851franchise.com/subscription-based-services-rule-retail-2711658
category: "Specialty retail"
industry: "Retail"
segment: "Specialty retail"
published: 2019-11-19T16:11:00.000Z
modified: 2026-11-01T02:29:00.117Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/810a8baf2e780e35ac554626a1f3ad0c7061.jpg
---

# Subscription-Based Services Rule Retail

**TL;DR:** Nordstrom is expanding its partnership with Rent the Runway to offer high-end clothing rentals. The subscription-based service allows members to rent clothes for as low as $30 a month.

*originally published in 1851 Franchise on 2019-11-19. [Read the original](https://1851franchise.com/subscription-based-services-rule-retail-2711658).*

## Story

**The state of modern retail is in flux. While something as personal as clothing seems like consumers would still flock to a traditional brick-and-mortar location, dipping in-store retail sales are proof that that’s not always the case. Even at popular malls,** **food halls are raking in the business****, not clothing stores.**

**According to** **Forbes****, Nordstrom is presently expanding its partnership with** **Rent the Runway****, a subscription-based clothing service where members rent clothes rather than buy them. Previously, consumers would often save up to splurge on expensive garments for special occasions like weddings, but with the advent of models like Rent the Runway came access to high-end, designer occasion wear without breaking the bank. Subscriptions start as low as $30 a month—you just have to give it back when you’re done.

Forbes reported that the iconic department store has been testing the service in five stores, but will start expanding the offering— complete with rental drop-off boxes—to 24 more stores.

**Nordstrom is also expanding its services to consumers who use RTR but who don’t already have a Nordstrom card, including styling and gift wrapping according to Forbes.**

**What does a subscription model say about consumer trends in the U.S. as the year closes? The truth is,** **millennials are spending more on experiences, and less on things****. By offering a service that is convenient, affordable and experiential, Nordstrom remains relevant to an increasingly fickle consumer.**

**And while some businesses are bemoaning decreased foot traffic, the popularity of the** **membership model** **actually shakes out pretty well for most franchises. In an economy where consumers want to feel and look their best but don’t necessarily want to pay a premium for it, popular franchises like membership-based massage parlors, boutique gyms and beauty services offer consumers a luxury service at a competitive price point.**

## Entities

- 1851 Franchise (publication)
- Retail (sector)
- Forbes (company)
- retail expansion (topic)
- membership model (topic)
- Nordstrom (company)
- subscription services (topic)
- clothing rentals (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/subscription-based-services-rule-retail-2711658). Summarized by Burnaze (https://burnaze.com/article/09d914cb-330c-44ce-b5d6-0401c5d50f82).