Urban Outfitters’ New Rental Service May Not Be Enough to Tame Investor Fears

Urban Outfitters is taking steps to stay in the game. But investors don’t seem satisfied. The teen retailer, parent company to the Anthropologie Group, Free People, a food-and-beverage business, as well as its namesake brand, announced the launch of Nuuly, a monthly rental subscription service on Tuesday just before its latest earnings results. The latest brand, which is set to launch this summer, will let Urban Outfitters shoppers rent up to six pieces a month, a mix of the company’s own apparel, third-party labels and vintage pieces, for $88. It’s also the company’s attempt to tap into the lucrative resale and rental market. Much like Rent the Runway, shoppers will have the option to buy if they choose.  “[Urban] enters the rental landscape with many strategic advantages,” David Hayne, chief digital officer of Urban and Nuuly president, said in a statement. “We bring our distinctive brands and their proprietary assortments, millions of existing customer relationships with rich preference histories, long-standing brand partnerships, a broad point-of-sale distribution network, as well as deep, operational know-how and investable capital. “Nuuly is uniquely positioned to deliver the dynamic subscription rental experience the modern customer desires,” Hayne added. In addition, the company has recently made changes to its

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