Urban Outfitters Is Moving Into The Clothing Rental Business
Fashion can be tricky. For starters, in a social media driven society, no one wants to be caught dead in the same outfit twice. But shopping for a new wardrobe every season is expensive, not to mention, bad for the environment.
As more and more shoppers Mari Kondo their closets and transition one-time-wear fast fashion out of their lives, companies are starting to take notice. Over the past few years, we’ve seen a rise in fashion rental companies, and the once-niche market is gaining traction.
Over in the states, household retailers like Ann Taylor, American Eagle, and Express have joined the subscription service race, and now another big name is entering the rental market.
Teen favourite Urban Outfitters recently announced that it would launch a clothing rental service.
The retailer announced that it would launch an online subscription service by the summer of this year. Dubbed Nuuly, the service will allow shoppers to borrow six pieces of clothing for $88 a month. And it won’t just be Urban Outfitter branded clothing up for offer — other Urban Outfitter brands like Free People and Anthropologie will be added into the mix, in addition to over 100 third-party brands like Nike and Reebok.
Nuuly items will be sent in a reusable bag with a prepaid shipping label, and if a customer falls in love with an item, they’ll have the option to keep it for an additional cost.
According to the research firm GlobalData, the clothing rental industry is set to grow to $2.5 billion by the end of 2023.
In an interview with the Wall Street Journal, David Hayne, Urban Outfitters’ chief digital officer said that Nuuly is expected to gain 50,000 subscribers and over $50,000 in annual revenue within a 12 months.
For now, Urban Outfitters will launch the service for American customers only.
However, a spokesperson for the retailer told BBC that “the brand is looking forward to the opportunity to further evolve and expand both their offering and geographic footprint over time.” So, we’ve got a hunch that, pending Nuuly’s success, we could potentially see the service make its way into Canada.
Until then, we’ll stick to the Canadian rental companies that we know and love.
Featured image: Instagram/@minahhan
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