Urban Outfitters is rolling out a fashion rental subscription service called Nuuly in the US.
The initiative is the first of its kind for a mid-market bricks-and-mortar retailer with rental services currently confined to luxury players such as Rent the Runway, while digital start-ups such as Stitch Fix have cornered the subscriptions market.
The service will cost $88 (£70) to rent eight items per month. Customers will not choose their items but will instead fill out a style quiz and be sent items every month. They will then be able to choose to buy an item.
As well as Urban Outfitters clothing, customers will be able to rent clothing from sister brand Anthropologie and labels such as Levi’s and Fila.
Urban Outfitters chief digital officer David Hayne told The Wall Street Journal he expects the service to win 50,000 subscribers and generate $50m in sales in its first year.
The business has not commented on whether it might bring the service to the UK but said it was “looking forward to the opportunity to further evolve and expand both their offering and geographic footprint over time”.
Urban Outfitters said: “Interest in sharing-economy platforms and recurring subscription relationships has grown across industries. In apparel, the millennial consumer in particular is seeking out platforms that provide novelty, variety and breadth, while also supporting sustainability.”
The market for online clothing rental is set to grow to $2.5bn by 2023, according to GlobalData.