Competing with Rent the Runway in US Stores

  • Urban Outfitters launches online rental platform called Nuuly
  • Platform to compete with existing rental platforms like Rent the Runway
  • Initially available in US stores
  • Allows customers to rent up to six items of womenswear
  • No decision made on European rollout yet
  • Revenue for first quarter of 2019 financial year increased by 1% to £681m

Clothing retailer Urban Outfitters has announced the launch of its online rental platform, Nuuly, which will compete with existing platforms like Rent the Runway. Initially available in US stores, the platform allows customers to rent up to six items of womenswear. The company’s decision comes after a 1% increase in revenue for the first quarter of the 2019 financial year, reaching £681m. Urban Outfitters CEO Richard A Hayne attributes this growth to positive retail segment ‘comps’ and continued growth in their wholesale segment.

Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Urban Outfitters’ new rental platform trial called Nuuly, its initial focus on US stores, competition with existing platforms like Rent the Runway, and the company’s financial performance. It also mentions the CEO’s statement on sales growth. However, it lacks details on the exact launch date or scope of the trial and doesn’t provide any personal opinions or biased statements.
Noise Level: 4
Noise Justification: The article provides relevant information about Urban Outfitters’ new rental platform trial and its financial performance, but it lacks in-depth analysis or exploration of the consequences of this decision on the industry or consumers.
Financial Relevance: Yes
Financial Markets Impacted: Urban Outfitters’ stock price and other clothing retailers’ stocks may be impacted
Financial Rating Justification: The article discusses Urban Outfitters’ financial performance and its decision to launch a new rental platform, which could affect the company’s revenue and potentially impact the overall clothing retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk