Spotlight: Nuuly -- Style on Rotation - The New Normal

Meet Nuuly — the clothing rental platform making style more circular — and the Seeing Green Solutionist of the Day for October 2.

In this Spotlight episode, we focus on apparel, one of the highest-impact sectors of daily life. With over 100 billion garments produced each year and the average piece worn only 7–10 times, the challenge is clear: how do we extend the life of clothing while reducing waste and emissions?

Nuuly offers one solution. Launched in 2019 and backed by URBN (the parent of Anthropologie, Free People and Urban Outfitters), Nuuly makes it easy for consumers to rent, wear and return stylish pieces each month instead of buying new. The model delivers variety and access at lower cost, while helping curb the overproduction cycle of fast fashion.

By lowering barriers to try rental, Nuuly is bringing a once-niche concept into the mainstream — proving that rethinking how we wear and re-wear clothes can be a win for both people and the planet.

Transcript

Welcome to Seeing Green - Solutions for our Daily Lives. The podcast where we spotlight the brands, ideas and people making it easier to live sustainably every day.

Today’s episode is part of our “Spotlight” series – a deep dive into one of our Seeing Green Solutionists of the Day. And now… today’s solution.

Welcome listeners to episode 33 of the Seeing Green podcast. Today's deep dive is part of the Seeing Green Spotlight series where we take a closer look at our Solutionist of the Day and the real solutions they bring to help us all be healthier and greener in our daily lives. And just a reminder, if you enjoy this content, please subscribe to the podcast and follow us @SeeingGreenEco across social media.

So today we're diving into re-commerce, specifically clothing rental. We have touched on this before, haven't we?

We have. Yeah. In our episode focused on Greening My… Closet, we looked at resale, rental, repair, all of that.

And that spotlight we did on ThredUp, which was, you know, a real pioneer in resale.

Exactly. But today, it's all about rental access.

Yeah.

Okay, let's unpack this a bit. The scale of the fashion industry's footprint, it's just staggering. I mean, the numbers are pretty stark. Over a 100 billion garments produced each year.

It's enormous. 

Yeah.

And the industry contributes something like what, 10% of global carbon emissions around there.

It's a huge chunk.

And what really shocking, I think, is how little we actually wear these clothes. The average item gets worn maybe seven to 10 times. That's it.

Seven to 10 times. That's barely anything.

Right. So, the most sustainable garment really is the one you already own. Extending that life is just critical. 

Yeah.

And this need, this inefficiency really drove the emergence of re-commerce over the last say 10, 15 years. You know, secondhand, rental, repair.

But what feels different now is the tech aspect, right?

Absolutely. These tech platforms are making resale and rental so much easier, safer, and honestly more stylish all at a massive scale.

And apparel rental offers something distinct. It complements resale because it's about access, not owning the item forever.

Mhm. It really taps into that consumer desire for novelty, maybe for special occasion wear, or even just dealing with fluctuating sizes, you know.

Without having to buy something new every time.

Exactly. All while extending the life of the garments already out there.

Which brings us to our solutionist of the day, Nuuly. 

Yep. Nuuly. They launched back in 2019. And interestingly, they're owned by URBN, pronounced urban.

Ah, the parent company of anthropology, Free People Urban Outfitters. Makes sense.

It does. And that background is key. The core idea wasn't just another high-end rental service. It was really designed to bring apparel rental mainstream.

Bridging that gap between sort of high street fashion and sustainability.

Precisely.

And here's where it gets really interesting. Nuuly hasn't just entered the market. They've well, they've rapidly become a dominant player.

Definitely. The growth has been phenomenal.

We're looking at a company that's captured subscribers who maybe used rental before, but also a whole lot who are completely new to the idea.

The figures are quite something. Nuuly apparently has more than double the active subscribers of Rent the Runway, their next largest US competitor.

Double? Wow. What's the number?

Around 380,000 subscribers currently and they're showing real resilience, too. They generated their first full year of operating profit, about $5.2 million.

Which is significant in this sector.

It is. And they're aiming for half a billion dollars in sales this year. Plus, people stick around. Retention is apparently 90% in the first year.

90%.

Yeah. And still around 40% even after 3 to 5 years. That's strong.

Okay. So, what's the user experience like? You mentioned it being friction-free for the learner, the person trying it out.

It really is designed that way. It's a subscription service. Currently, it's $98 a month. And for that, you rent any six items you choose.

Any six.

Any six. This selection is huge. Hundreds of brands, thousands of styles, premium denim, vintage pieces, and of course, styles from their sister URBN brands.

Which make up a good chunk of the inventory, right?

About 45%. Yeah. Which likely helps keep their costs manageable.

And you get to customize it completely. Like, if I wanted four tops and two dresses, or maybe six pairs of jeans.

Totally your call. You pick your six items and they're yours to wear for the next month.

Okay, that part's clear. But what about the everything else they handle? The convenience factor.

Right. This is key. They offer fast free shipping and returns. And it comes in this reusable Nuuly bag, which is pretty neat.

Made from recycled materials.

Postconsumer plastic. Yeah. And they estimate one bag replaces about 40 cardboard boxes over its life. Plus, no extra plastic bags or hangers inside.

That's a nice touch. What about fees -- late fees, damage fees. That always worries people with rental.

None. No late fees, no damage fees. It's built into the model.

Seriously.

Seriously. And maybe the biggest thing -- laundry and dry cleaning are included. You just wear the clothes and send them back.

You don't wash them at all?

Nope. You skip the wash. Nuuly handles all the cleaning, stain removal, everything at their own uh specialized facility.

Okay, that is convenient. And it works for different needs, like everyday wear and not just fancy events.

Absolutely. It's designed for everyday fair, work, vacation, special occasions, whatever you need. Plus, it's commitment free. You can pause or cancel anytime.

And what if you like really love something you rented?

Ah, the try before you buy aspect. If you fall in love with an item, you could just buy it directly through your account, usually at a discount.

Okay, that model clearly works for the consumer. Access to tons of styles, fraction of the cost, appeals to budget conscious people, style seekers. But what about the green side, the planet impact?

Well, for the planet, the big benefit is circularity. Rental is fundamentally about minimizing ownership and maximizing the use of each garment.

Moving away from that buy, wear, discard cycle.

Exactly. And Nuuly takes specific operational steps to extend that garment life.

Like what? Beyond just renting it out again.

Yeah. So, the rental garments are professionally mended. Stains are treated really carefully to get them out. Then they're hand inspected before the next renter gets them.

Trying to keep them in circulation as long as possible. Right. And they even have an initiative called Re_Nuuly. It's an upycling program where they collaborate with designers. I think Carleen, Trisha Fix, Zero Waste Daniel were mentioned.

Oh, cool. What do they do?

They take end of life rentals, items that maybe can't be rented anymore, and rework them into totally new pieces.

Turning waste into something new. I like that.

Mhm. And then there are the conscious logistics we touched on, the cleaning, for instance.

Right. You said they handle it all. Is it eco-friendly cleaning?

They're making efforts. Over 70% of the clothes are laundered in custom wet washing machines that are designed to be energy and water efficient.

Wet washing, not dry cleaning for most.

For most. Yeah.

Yeah.

Using non-alkaline, phosphate-free solutions. The rest the stuff that has to be dry cleaned uses a solution that's 100% free of PERC and TCE.

Okay. PERC and TCE. Those are the harsh chemicals often used in traditional dry cleaning right now.

Exactly. They're known toxins with significant environmental downsides. So using an alternative is a big step.

And the packaging, that reusable tote.

Yep. Cuts down massively on cardboard and single-use plastics.

They also seem to track inventory sourcing. Something about responsibly made styles.

Yeah. They try to highlight styles made with at least 50% third party verified certified materials like organic cotton, recycled polyester, Tencel, things like that.

So, putting it all together, connecting the dots.

If we look at the bigger picture, Nuuly success really shows that having robust infrastructure like those huge distribution centers, that massive one in Missouri.

600,000 square feet you said.

Yeah. That kind of scale, it can remove the friction from renting clothes. It makes it convenient, stylish, and accessible.

So, the key takeaway feels like it's democratizing re-commerce almost.

I think so. It proves rental isn't just for, you know, fancy ball gowns anymore. It can work for your everyday stuff, your work clothes, just experimenting with your look.

It's a step towards normalizing these circular fashion choices for, well, everyone. The mainstream.

Which raises that important question for you, the listener, to think about. How often do you find yourself buying something just for one party, one wedding, one specific event?

Yeah, guilty as charged sometimes.

We all are. But could shifting that perspective, thinking about access instead of ownership, actually lighten your wallet and your environmental footprint?

It's definitely food for thought. Rethinking fashion as access versus ownership. We really encourage you to explore Nuuly or maybe other re-commerce options out there. These small shifts and how we shop, how we wear, how we share clothes, they can add up to big impacts. To learn more about Nuuly, you can visit them at Nuuly.com. Interested in finding more brands and innovators dedicated to creating a greener, more sustainable world? Subscribe to the Seeing Green podcast. Then visit the Seeing Green website to see more trailblazers making significant strides in promoting eco-friendly living through innovative products, solutions, and practices online at www.seeinggreen.eco. And follow us @SeeingGreenEco across all of the social media channels so you don't miss the latest. Thank you for joining us for this episode of the Seeing Green Spotlight Series podcast.

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