The innovative clothing rental company Nuuly focuses on sustainability and efficiency through its extensive rental process and operational strategies.
Dozens of black and gray square zippered bags lined in pink and blue can be seen at UPS stores throughout Philadelphia, signaling the monthly rental process of Nuuly, a clothing rental company based in the city. For a subscription fee of $98, women can select six items from a vast online catalog that ranges from everyday wear to high-end gowns. The garments are delivered directly to customers and can be returned via UPS using Nuuly’s signature recycled plastic bags.
These returned items find their way to a considerable 300,000-square-foot warehouse located in Levittown, where an expansive operation manages everything from Anthropologie dresses to unique designer pieces. Dave Hayne, chief technology officer at URBN and president of Nuuly, explained that the company’s vision revolves around keeping clothing in inventory and circulation for as long as possible. “Our goal is not to feed any inventory into a landfill,” Hayne stated.
Nuuly, part of the URBN family alongside brands such as Urban Outfitters and Free People, has rapidly grown since its launch in July 2019. By early 2025, the company has amassed over 300,000 subscribers—a number that includes 20,000 new subscribers added within just the last quarter, leading to a revenue increase of 56% to $113 million. Further showcasing its growth, Nuuly opened a new 600,000-square-foot warehouse in Kansas City the previous year.
Upon arrival at the Levittown warehouse, the bags are stacked on pallets, initiating the intricate process of sorting, cleaning, and mending before the clothes can be rented out again. This facility employs around 750 workers who engage in a variety of tasks. The clothing items are logged through specialized software that tracks each piece’s rental history and care instructions.
The average salary for a warehouse associate at Nuuly is reported to be about $40,000 annually, inclusive of health benefits, retirement plans, and paid time off. Although the workers are not unionized, Hayne noted, “In order for us to be competitive in this market, we need to be probably well over $10 at minimum wage at this point.”
The sorting operation employs color-coded bins; clothes designated for washing and dry cleaning are placed in corresponding containers and transported to what is referred to as the “Madison Square Garden of laundromats.” This facility features large commercial machines for washing, drying, and sanitizing garments, along with a specialized steam tunnel.
After washing, items are meticulously inspected at dedicated stations. Utilization of a 16-step checklist aids associates in verifying the condition of each piece—looking for stains, rips, or missing identification tags. Any identified issues, such as stains, are attended to by skilled workers like Tarun Gulati, who use customized cleaning solutions developed in-house.
Garments needing further attention, such as repairs, are sent to separate tailoring stations equipped with various supplies. Each day, close to 1,000 clothing items undergo repairs in this warehouse setup.
Nuuly’s concept is rooted in sustainability, with Hayne indicating that each item remains in inventory as long as there is demand. When a piece shows diminished rental interest, it may be discounted through other URBN brands or end up in the company’s thrift store, Reclectic, or undergo upcycling for the ReNuuly online store.
Once cleaned and restored, the garments return to Nuuly’s innovative three-level carousel system which handles over 1 million items. Using an automated conveyor system, clothing is seamlessly managed for efficient stocking and retrieval.
When it’s time for the clothes to go back out, they are prepared with outbound labels, and associates expertly pack them into the same zippered bags returned by customers. Hayne notes that customers do not need to clean the clothing prior to returning, as they may lack the necessary knowledge or means to appropriately handle certain fabrics. “If a subscriber falls in love with any of the items that she has with her, she can choose to purchase those items. We usually add a nice discount,” Hayne stated.
The entire process—from delivery to return and eventual re-rental—highlights Nuuly’s operational efficiency, serving as a multi-step journey that underscores the principles of sustainability and convenience within the clothing rental industry.
Source: Noah Wire Services
