How Urban Outfitters’ Nuuly Outplayed Rent The Runway
Fashion corporation Urban Outfitters Inc., or URBN, joined the clothing rental market in 2019 with its subscription service, Nuuly. So far, Nuuly has already seen substantial growth, doubling its revenue from July 2022 to July 2023 and counting an 85% increase in subscribers in the same period. It’s not a first mover in the rental market, but it’s growing faster than competitor Rent the Runway, which launched about a decade prior to Nuuly and has fewer subscribers. Rent the Runway’s stock has dropped about 96% since going public at the height of the pandemic in 2021. Some experts have called Nuuly a case study proving how well a service can do when a parent company goes “all in” on rental. But rental is not only good for business, its also good for the environment. URBN has spent over $100 million so far and is opening a new $60 million facility in the first quarter of 2024 to keep up with demand.
Chapters:
00:00 — Introduction
02:06 — The sharing economy
06:01 — Nuuly’s potential
10:58 — Risks
Produced, shot, and edited by: Natalie Rice
Narration by: Erin Black
Animation: Christina Locopo
Super Managing Producer: Tala Hadavi
Additional Footage: Getty Images, AP Images, NBC News
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How Urban Outfitters’ Nuuly Outplayed Rent The Runway
