Nuuly’s Thrift Shop Hits 50% Faster Resales Backed by Recurly

Recurly, a leader in subscription management, and Nuuly, URBN’s clothing rental service, announced an expanded partnership to integrate a revamped Thrift Shop into Nuuly’s subscription model. The feature allows subscribers to purchase pre-loved clothing alongside rentals, reinforcing Nuuly’s sustainability goals while leveraging Recurly’s billing platform to streamline operations and retain customers.

Key Features of the Partnership

• Thrift Shop Integration: Subscribers can now buy up to five final-sale items monthly, shipped free with their next rental. Unlike Nuuly’s discontinued peer-to-peer resale app, the new Thrift Shop curates inventory directly from Nuuly’s stock, ensuring quality and reducing waste.
• Partial Order Management: Recurly’s platform supports dynamic billing for mixed rental/purchase orders, enabling seamless customer experiences.
• Sustainability Focus: The initiative aligns with URBN’s broader eco-friendly strategy, diverting garments from landfills by reselling used items after rental cycles.

Retention and Growth

The partnership builds on a collaboration dating to 2019, which has driven 50% YoY growth for Nuuly. According to Recurly’s 2025 State of Subscriptions Report, retention is the top priority for 67% of subscription businesses, making tools like Thrift Shop critical for loyalty.

Joe Rohrlich, Recurly CEO, noted:

“Our platform handles billing complexities so Nuuly can innovate. Features like Thrift Shop keep customers engaged, turning rentals into long-term relationships.”

David Hayne, President of Nuuly and URBN CTO, added:

“Recurly’s adaptability has been key as we scale. Their support lets us focus on what matters—curating experiences that resonate with our community.”

Operational Efficiency and Customer Experience

Recurly’s infrastructure enables Nuuly to:

• Automate subscription management across 20,000+ styles and 589 global locations.
• Offer real-time logistics, such as the “Check My Return” feature, which unlocks new shipments immediately after returns are scanned, reducing downtime.
• Maintain a 98% retention rate among Recurly-powered clients, per Recurly’s data.

Broader Implications for Fashion Retail

1. Circular Economy Push: Thrift Shop advances URBN’s efforts to dominate sustainable fashion. Prior iterations, like the peer-to-peer Nuuly Thrift (2021–2023), faced challenges, but integrating purchases into rentals simplifies the lifecycle.
2. Subscription Model Evolution: Blending rentals with ownership caters to Gen Z’s demand for flexibility—55% of Nuuly subscribers engage with Thrift Shop monthly.
3. Tech-Driven Scaling: Recurly’s API-first platform supports URBN’s expansion into Europe and Asia, with plans to add 50+ locations in 2025.

Future Outlook

While Nuuly’s growth is robust, the shift from peer-to-peer resale to curated Thrift Shop risks alienating sellers who previously used Nuuly Thrift. However, URBN prioritizes quality control and inventory turnover, ensuring 85% of returned items are reused or resold.

Nuuly aims to double its subscriber base by 2026, with Recurly managing backend scalability.

As Hayne emphasized,

“This isn’t just about clothes—it’s about building a community around conscious consumption.”