Urban Outfitters to start renting clothes
Urban Outfitters is jumping into clothing rental, trying to tap one of the fastest-growing areas of fashion without discouraging people from shopping at its stores.
The company, which owns the namesake chain along with Free People and Anthropologie stores, is launching an $88 monthly service in the summer that allows shoppers to borrow six items from those brands and outside labels like Gal Meets Glam and Reebok, as well as vintage pieces sourced from flea markets and dealers.
The new business, called Nuuly, will be run as a separate entity by David Hayne, chief digital officer at Urban Outfitters and son of the company’s co-founder and CEO. Hayne, who started at the company folding shirts at a store in Philadelphia, has held several roles at the chain since 2001, including chief operating officer of the Free People brand.
The rise of fast fashion and online shopping is driving the growth of the rental apparel market, which has been growing at a rate of more than 20% annually, according to GlobalData Retail.
The market, excluding costume rental, was valued at about $1 billion in 2018 and is projected to surpass $2.5 billion by 2023, the market research firm said.
Hayne said Urban executives focused on the rental model when discussing how to diversify the company’s business.
Now the company is betting Nuuly will attract new shoppers and boost purchases by current ones rather than cannibalize sales.
A model at a photo studio in the Philadelphia office of Nuuly, the new clothing rental business of Urban Outfitters.