URBN Picks Kansas City for $60M Fulfillment Center

Raymore Commerce Center in Raymore, Mo. Image courtesy of Jacia Phillips|Arch Photo KC

Urban Outfitters Inc. (URBN), a global lifestyle and retail company, plans to invest $60 million in a new 604,000-square-foot fulfillment center for its clothing rental brand, Nuuly, at the Raymore Commerce Center in Raymore, Mo. The company expects to create 750 jobs at the site in the Kansas City industrial market within five years.

Pending completion of all state and local approvals and agreements, the company plans to locate its fulfillment and laundry center at the property, which was developed by VanTrust Real Estate and marketed by Colliers. Located off Interstate 49, the industrial park has three buildings, and the 130-acre site can accommodate nearly 2 million square feet of space. The Kansas City, Mo.,-based developer broke ground on the first 565,000-square-foot building in September 2020.

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The planned facility will be Nuuly’s second fulfillment center in the U.S. and will support the brand’s next phase of growth, according to Dave Hayne, chief technology officer of URBN & president of Nuuly.

URBN is a leading lifestyle products and services company featuring global consumer brands such as Anthropologie, BHLDN, Free People, FP Movement and Urban Outfitters. Nuuly is a subscription rental clothing service for women and a retail marketplace that offers thousands of styles from URBN brands and designers. People can also buy or sell secondhand through Nuuly Thrift on the brand’s website. Hayne said in a prepared statement Nuuly has experienced significant growth since it was launched in 2019.

Kansas City industrial market growth

The Nuuly facility represents URBN’s growing presence in the market. The company announced plans in 2020 to establish a $403 million, 1.5 million-square-foot omni-channel fulfillment center in Kansas City, Kan., which was complete in October 2022.

Gov. Mike Parson said in prepared remarks Missouri is a strategic choice for companies like Nuuly that are searching for a location in the middle of America for their expansion projects.

Chris Gutierrez, president of KC SmartPort, an affiliate of the Kansas City Area Development Council, said in a prepared statement global supply chain demand continues to increase and the Kansas City region’s central location, robust infrastructure and access to skilled workers continues to attract leading brands like URBN.

The KCADC serves the 18-county, two-state Kansas City area as an economic development nonprofit and has helped attract more than 60,000 jobs to the region. The Kansas City region is a leading North American logistics hub and key location for distribution and e-commerce with access to rail, air, water and road transportation. About 85 percent of the U.S. population can be reached from Kansas City in two days or less.