Dive Brief:
- URBN began operations at its new fulfillment center in Raymore, Missouri, for its women’s clothing rental brand Nuuly, according to a Feb. 20 press release.
- The 600,000-square-foot facility includes full laundering and clothing alteration capabilities.
- The new center will create 750 jobs over the next five years and expected to provide the company with capacity to triple its active subscriber base, according to the release.
Dive Insight:
Nuuly’s second fulfillment center in Missouri aims to position the company for future growth as it reports higher profits and increasing demand, David Hayne, chief technology officer of Urban Outfitters and president of Nuuly, said in the release.
“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,” Hayne said.
Nuuly operates one other facility in Levittown, Pennsylvania, which was built in 2019. “The facility was operating at capacity, which is why Nuuly has opened a second larger facility,” a Nuuly spokesperson told Supply Chain Dive.
Missouri has seen a wave of distribution center openings as companies seek to trim transportation costs and speed up delivery times. The state has become a widespread link in companies’ supply chains, including Hallmark, Kenco Logistics and Walgreens.
URBN is set to invest $60 million in the facility over a five-year period. There will be two phases during this period, which will be based on subscriber growth. Nuuly owns the entire space and additional infrastructure will be built as the company grows, Hayne told Supply Chain Dive in an email.