Since the first apparel rental service in 2009, Rent the Runway, fashion subscriptions have become the new trend for clothing retailers. Urban Outfitters Inc. is the latest company to announce its intention of adding a rental service for its three brands. The subscription service, named Nuuly, will offer over 1,000 styles, adding at least 100 new designs weekly and be available for consumers of Anthropology, Free People and Urban Outfitters.
Founded in 1970, Urban Outfitters Inc. has been a popular shopping destination offering customers everything from cosmetics to home decor and both men and women’s apparel. The last five years have seen incredible growth for the retailer, which, according to CSG’s historical analysis, averaged a 3.25% increase in sales and a 4.87% increase in store openings. The new subscription service is an excellent opportunity for both customers and suppliers. If past subscription services are anything to go by, Urban Outfitters’ new endeavor will be hugely successful, which will result in the need for new products to offer subscribers; this, in turn, opens the door to suppliers looking to do business with the retailer.
The rental market is projected to hit $1.8B by 2023. With estimates so high, companies will need to take advantage of the rental market’s growing popularity to stay current. Nuuly, run by the company’s Chief Digital Officer David Hayne, is expected to add $50M in annual revenue.