Lululemon, a Vancouver-based athletic and leisurewear company, has joined the growing trend of retailers venturing into the resale market. This shift towards second-hand shopping moving beyond traditional thrift stores and online marketplaces is evident as major brands like Canada Goose and Arc’teryx are also reevaluating their strategies around used clothing.
The impact of this shift is demonstrated at a 25,000-square-foot processing facility in Calgary operated by Tersus Solutions, where returned Lululemon items are meticulously cleaned, graded, and prepared for resale as part of the brand’s Like New service. This facility, the first in Canada for Tersus, not only handles returns but also manages pre-owned Lululemon items sold by customers nationwide.
The attractiveness of resale to companies lies in the opportunity to re-sell products that would otherwise be discarded, while also fostering customer loyalty through credit incentives for future purchases. This initiative benefits customers by offering savings on newer items and contributes significantly to sustainability efforts.
Recently launched in Canada, Lululemon’s Like New program allows customers to buy and sell pre-owned Lululemon clothing through an online platform. Customers participating in the program can receive either 70% of the sale price in cash or 90% in store credit, according to the program’s FAQ page. To sell items, proof of purchase is required, although some items may be eligible for trade-in even without a receipt.
Maureen Erickson, Lululemon’s senior vice-president of retail experience, emphasized the program’s role in extending the lifespan of products and providing a trusted way for customers to continue using their high-quality gear.
At the Calgary facility, managed by Tersus Solutions, a specialized liquid CO2 cleaning system is utilized to clean and refurbish clothing items without water. Despite initially focusing on processing returns, the facility has been inundated with orders, receiving between 1,000 and 1,500 items daily, surpassing expectations.
Peter Whitcomb, CEO of Tersus Solutions, highlighted the growing demand for recovering value from returned and used merchandise, with the company’s U.S. business expanding significantly in recent years. Collaboration with brands like New Balance, the North Face, and Arc’teryx underscores Tersus’ commitment to the resale market.
Retail analyst David Ian Gray noted the increasing popularity of second-hand markets in Canada, with a significant percentage of Canadians engaging in pre-owned shopping. For retailers, integrating resale platforms into their brand offerings can attract new customers seeking affordable options and cater to diverse budgetary needs.
Early adopters like Victoria-based Anián have leveraged resale platforms successfully, aligning with their commitment to sustainability by using post-consumer recycled fabrics. Other companies, such as IKEA Canada, have also embraced resale initiatives, emphasizing the importance of sustainability and affordability in the evolving retail landscape.
In essence, introducing resale options does not diminish a brand’s premium status but rather provides consumers with alternative price points and reinforces the circular economy model within the retail sector.
