Lululemon has ventured into the resale market, following a trend where second-hand shopping is evolving beyond traditional venues like thrift stores and online platforms to include brands’ own ecosystems. The company, based in Vancouver, has joined the likes of Canada Goose and Arc’teryx in reimagining their approach to pre-owned clothing.
This shift is evident at a 25,000-square-foot processing center in Calgary managed by Tersus Solutions, where returned Lululemon items undergo cleaning, grading, and preparation for resale through the brand’s Like New service. This facility marks Tersus’s first Canadian establishment and will not only handle returns but also manage the resale of used Lululemon products across the country.
The motivation for companies to embrace resale is clear – the opportunity to revive products that would otherwise be discarded, potentially generating additional sales while fostering customer loyalty through credit incentives for future purchases. This approach benefits consumers by offering savings on newer items and contributes significantly to sustainability efforts.
Recently introduced in Canada, Lululemon’s Like New program enables customers to buy and sell pre-owned Lululemon apparel through an online platform. Customers can receive either 70% of the sale price in cash or 90% in store credit, as stated on the program’s FAQ page. While proof of purchase is required for selling items, some items may be eligible for trade-in without a receipt, as indicated on the Like New website.
Maureen Erickson, Lululemon’s senior vice-president of retail experience, emphasized the longevity of their products and the extension of their lifespan through the Like New initiative, offering a trusted avenue for customers to continue using quality gear.
At Tersus Solutions’ Calgary facility, a meticulous process involving inspection, cleaning with a waterless CO2 system, refurbishment, and grading is in place. Despite the primary focus on processing returns for resale currently, the facility has been handling an impressive volume of orders, with daily entries ranging between 1,000 and 1,500 items. The substantial growth experienced in the U.S. by Tersus Solutions underscores the increasing demand among brands to recover value from returned and pre-owned merchandise.
Retail analyst David Ian Gray highlighted the shift in the retail landscape towards capitalizing on the burgeoning second-hand market, with an increasing number of consumers engaging in buying and selling pre-owned items. Integrating resale within their brand allows retailers to tap into a broader customer base, offering varied price points and quality levels to cater to diverse consumer needs and economic circumstances.
Early adopters like Anián, a clothing company based in Victoria, have embraced resale, establishing a platform for customers to sell Anián products to fellow shoppers since 2021. The company’s commitment to circularity and sustainability has garnered significant traction, with the resale site attracting substantial traffic and contributing to waste reduction.
As more companies explore resale opportunities, the trend is not about discounting premium brands but offering alternative price structures to cater to a wider audience. IKEA Canada’s Sell-back program, initiated in 2019, reflects this shift, enabling customers to return items for in-store credit, emphasizing the shift towards a more sustainable and value-driven retail model.