Lululemon, a well-known athletic and leisurewear company based in Vancouver, has ventured into the resale market trend, aligning with other major brands like Canada Goose and Arc’teryx in reimagining their stance on second-hand clothing. This strategic 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.
The allure of resale for companies lies in the opportunity to revive products that would otherwise be discarded, fostering customer loyalty by offering credits for future purchases. This not only benefits customers by providing access to discounted items but also contributes to sustainability efforts. Lululemon rolled out its Like New program in Canada recently, enabling customers to buy and sell pre-owned Lululemon apparel through an online platform.
Customers participating in the program can receive either 70% of the sale price in cash or 90% in store credit, as outlined on the Like New FAQ page. While a proof of purchase receipt is typically required to list an item for sale, certain products may be eligible for trade-in without a receipt. Maureen Erickson, Lululemon’s senior vice-president of retail experience, emphasized the program’s role in extending the lifespan of their products, offering consumers a trusted avenue to maintain the utility of their gear.
Operating within the Calgary facility, Tersus Solutions employs a waterless cleaning technology to inspect, clean, refurbish, and grade clothing items. Despite the current focus on returned merchandise, the facility has experienced a remarkable volume of orders, processing between 1,000 and 1,500 items daily, exceeding initial expectations. Tersus CEO Peter Whitcomb highlighted the increasing demand for value recovery from returned and used goods, particularly noting the enthusiasm among brands such as New Balance, the North Face, and Arc’teryx in the U.S., with plans for further expansion in Canada.
Retail analyst David Ian Gray emphasized the growing importance for retailers to engage with the burgeoning second-hand market, citing the rising popularity of platforms like Facebook Marketplace for pre-owned items. A study conducted by DIG360/Angus Reid Institute revealed that 77% of Canadians had purchased pre-owned items within the past year. By incorporating resale under their brand umbrella, retailers can attract new customer segments seeking affordable options and diverse product qualities.
An example of early adoption in the resale realm is Victoria-based clothing company Anián, which established its own marketplace in 2021 for customers to resell Anián products to fellow shoppers. Emphasizing circularity and sustainability, COO Jeff Papa highlighted the success of the resale platform, which not only generated substantial sales but also diverted significant textile waste from landfills. IKEA Canada’s Sell-back initiative, launched in 2019, also exemplifies the trend of established brands embracing resale strategies to provide customers with credit incentives for returning items.
Gray emphasized that incorporating resale initiatives does not equate to diminishing a brand’s premium status but rather offers a distinct pricing model catering to a broader consumer base. This evolving landscape underscores the shift towards circular fashion economies and the increasing importance of sustainable practices in the retail industry.
