Move over, Travis Kelce. Another household name is planting roots in Kansas City.
After Nuuly turned a profit in the third quarter of 2023, parent company Urban Outfitters is investing further in the future of the rental platform.
The URBN-owned women’s apparel rental and resale market’s second fulfillment center commenced operations at a 600,000-square-foot facility in Raymore, Missouri. And opening day was an “exciting moment” for the Midwestern state, according to Governor Mike Parson.
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“Missouri’s economic strengths are continuing to result in significant investments from world-class employers,” Parson said. “We’re proud to see URBN beginning operations in Raymore and look forward to the lasting, positive impact it will have for Missourians.”
The Philadelphia-based Anthropologie owner is investing $60 million in two phases of work over the course of five years to build the fulfillment and laundry facility, which is expected to generate 750 jobs throughout the course of those five years.
URBN also anticipates that the space will give Nuuly the capacity to triple its subscriber base. For reference, the Rent the Runway competitor reported 198,000 active subscribers as of last November—a fanbase approximately 30 percent bigger than that of RTR.
“Nuuly has experienced unprecedented growth and momentum, and we are excited to expand our operations to the Kansas City region to support our next phase of growth,” said David Hayne, chief technology officer of URBN and president of Nuuly. “Opening our second U.S. fulfillment center will allow us to grow well into the future.”
The facility is a “cutting-edge” fulfillment center with full laundering and clothing alteration capabilities—a necessity for Nuuly, which launders and repairs all clothing rented and returned—that will allow the URBN darling to “optimize its service across the country.”
Raymore’s mayor, Kris Turnbow, is also enthusiastic about the venture—the company’s second facility in the Kansas City region—stating she knew URBN would be a “great community partner” from the get-go. As is Chris Gutierrez, president of KC SmartPort, a strategic affiliate of the Kansas City Area Development Council.
“An industrial hub with robust infrastructure and skilled workforce, the KC region remains a top destination for leading brands,” Gutierrez said. “We look forward to URBN’s ongoing success here.”
And public-private economic development organization focused on bringing new jobs and cash flow to the state, Missouri Partnership, said URBN’s “strategic choice” to plant roots in the Kansas City region “further underscores the state’s unparalleled advantages.”
“Missouri’s central location in the heart of the nation, coupled with our robust infrastructure and skilled workforce, makes the state an ideal hub for businesses seeking efficiency and connectivity,” Subash Alias, CEO of Missouri Partnership, said. “We are thrilled to welcome renowned global retailer URBN to Missouri, and we are confident their presence will not only enhance the local economy but also leverage the state’s business advantages for their continued success.”
In 2019, URBN inaugurated the first Nuuly clothing rental facility located in Bristol, PA.
