Urban Outfitters Inc. will launch a rental service for its customers this summer.
The company, which also owns trendy retailers Free People and Anthropology, said the new company – called Nuuly – will run as a "separate entity", the Wall Street Journal reported.
Customers have the option of paying $ 88 a month to rent six items from the retail chain. After one month, customers return the goods to the company, where they will be washed and sent to another customer. Customers also have the opportunity to buy goods as well. When the month is over, customers have the opportunity to rent six new items and can choose from items sold at Urban Outfitters along with more than 1
David Hayne, Urban Outfitters' chief digital officer, said that business executives began discussing rental services as a way to diversify businesses into stores. Besides selling clothes, Urban Outfitters also sells household items and beauty products.
Hayne said he expected to have 50,000 subscribers within one year's operation and more than $ 50 million in annual revenue.
Urban Outfitters Inc. announced that it would be the launch of a service that allows customers to rent their clothes. (iStock)
"We certainly don't believe that customers will just stop buying," Hayne told The Journal. "Buy makes sense for things you know you want to use often; rent makes sense for things you want to try."
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Urban Outfitters Store is about 19 percent so far this year, according to The Wall Street Journal. Barron says retailer stock has dropped 27 percent over the past 12 months.
As Urban Outfitters, Ann Taylor and American Eagle have also started renting their clothes using CaaStle. Companies like Rent the Runway have had similar tactics since it was founded in 2009.
|URBN|| URBAN OUTFITTERS INC. ] 27.00  0.05  + 0.19%