Department Store Leader Becomes CEO of Major Apparel Rental Company What Shoppers Should Know
Rent the Runway has announced a major leadership change that underscores how traditional retail expertise is reshaping the fashion rental industry. Paige Thomas, who spent over a decade working in department store environments, has been promoted to chief executive officer, bringing a wealth of experience from the sector that defined American shopping for generations.
Thomas previously served as Chief Commercial Officer at Rent the Runway after joining the company in June. Her background includes five years at Nordstrom Rack, the off-price division of Nordstrom, plus leadership roles at other major retailers and luxury brands. Before her move to the apparel rental space, she held the position of president and CEO at Saks Off 5th, the discount outlet owned by Saks Global.
What This Leadership Transition Means
The shift signals a strategic refocus at Rent the Runway as the company works through the complexities of the rental economy. Thomas replaces Teri Bariquit, who stepped in as interim leader following the departure of co-founder Jennifer Hyman in May. Bariquit, another Nordstrom veteran who previously served as the department store’s chief merchant, will now take on the role of non-executive board chair.
This concentration of department store talent within Rent the Runway’s leadership ranks is notable. Both Thomas and Bariquit bring decades of experience managing inventory, customer relationships, and the financial pressures that come with running large-scale retail operations. Nordstrom Rack began selling garments from Rent the Runway back in 2020, creating an existing partnership that both leaders understand firsthand.
Thomas’s connection to Rent the Runway actually predates her official employment. While serving as CEO of Saks Off 5th, she oversaw a partnership that allowed customers to purchase previously rented designer items through the company’s website. That program ended when Saks Off 5th’s e-commerce operations were liquidated earlier this year as part of the parent company’s bankruptcy proceedings.
Financial Performance and Future Direction
The leadership announcement arrived alongside positive financial news. In the second quarter, Rent the Runway reported total revenue of approximately 97.7 million dollars, representing nearly 21 percent growth compared to the same period last year. The company also achieved a significant reduction in losses, cutting its net loss by more than half to reach 12.9 million dollars.
The company’s gross margin expanded substantially as well, climbing 610 basis points to 36.1 percent. This improvement suggests that the business is becoming more efficient in managing its core rental operations. However, the number of active subscribers did decline by nearly 4 percent to approximately 140,826, indicating ongoing challenges in customer acquisition and retention that any new executive must address.
Thomas outlined her vision as an acceleration rather than a fundamental shift in company direction. In her statement, she emphasized that her approach builds on momentum the team has already established. The company is now working on what leadership calls a 2027 plan centered on transforming the business model and strengthening the core rental offering. This focus on the foundation suggests the company will prioritize its primary subscription rental service rather than pursuing multiple business lines simultaneously.
What This Means for Shoppers
For consumers interested in fashion rental, these leadership changes carry practical implications. The arrival of executives with deep department store experience typically brings an emphasis on customer service, merchandise quality, and value proposition refinement. Thomas and Bariquit both understand how traditional retail operates and how to build loyal customer bases in competitive markets.
If you track every deal category we track, you know that the fashion rental market continues evolving rapidly. As department store shopping experiences shift, rental models have emerged as alternatives for consumers seeking sustainable options and access to designer pieces without permanent ownership. The infusion of traditional retail leadership suggests Rent the Runway is doubling down on reliability and core service delivery.
The appointment also reflects broader trends in how department stores are adapting to changing consumer preferences and digital retail evolution. Rather than viewing rental as a threat, established retailers are exploring how these models complement their existing businesses. This crossover of talent between traditional retail and emerging fashion services creates opportunities for each sector to learn from the other’s strengths.
The timing of Thomas’s promotion matters as well. The company is navigating a period where subscription models face ongoing pressure to prove their value, and retail sectors in general are adapting to economic headwinds. Leadership with experience managing through retail cycles and customer loyalty challenges becomes invaluable in this environment.
Looking ahead, shoppers should watch for how these leadership decisions translate into actual service improvements, pricing adjustments, or expanded offerings. The focus on the 2027 transformation plan suggests significant changes may be coming, possibly including how the company positions itself relative to other department store collaborations and retail partnerships that shape the shopping landscape.