Lululemon has ventured into the resale market, following a trend where second-hand shopping is increasingly transitioning from thrift stores and online platforms to brands’ own realms. The Vancouver-headquartered company has joined the league of major brands like Canada Goose and Arc’teryx in reevaluating their approach toward pre-owned garments.
In Calgary, Tersus Solutions operates a 25,000-square-foot processing center where returned Lululemon items are cleaned, graded, and prepared for resale under the brand’s Like New service. This facility, the first in Canada by Denver-based Tersus, not only handles returns but also manages used Lululemon products sold for resale nationwide.
The allure of resale for companies lies in the opportunity to reintroduce products that would otherwise be discarded, thereby fostering customer loyalty by offering credits for future purchases. This initiative benefits customers by providing access to newer products at reduced prices while promoting sustainability.
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 can receive either 70% of the sale price in cash or 90% in store credit, as stated on the FAQ page. Proof of purchase receipt is required for selling items, although some items may be eligible for trade-in without receipts, as per the program’s guidelines.
Maureen Erickson, Lululemon’s senior vice president of retail experience, expressed in a news release that their products are designed with high technical standards, enabling them to have a prolonged life beyond a single owner. She highlighted that Like New extends the lifespan of the products, offering customers a trusted way to keep using high-quality gear.
Tersus Solutions in Calgary inspects, cleans, and refurbishes clothing using an eco-friendly liquid CO2 cleaning system. The facility, currently focusing on processing returned items, has witnessed a significant influx of orders, processing between 1,000 to 1,500 items daily, surpassing initial expectations.
Speaking on the growth in the resale sector, Tersus CEO Peter Whitcomb mentioned the company’s substantial expansion in the U.S. over the past five years. He emphasized that working with brands like New Balance and Arc’teryx, Tersus plans to extend its operations in Canada as well.
Retail analyst David Ian Gray highlighted the increasing interest of retailers in capitalizing on the second-hand market, driven by platforms like Facebook Marketplace. A study by DIG360/Angus Reid Institute revealed that 77% of Canadians engaged in buying pre-owned items in the previous year.
By incorporating resale under their brand umbrella, retailers can attract customers looking for affordable options without compromising on quality. This strategy can cater to diverse customer segments and bring in new clientele amidst economic uncertainties, as explained by Gray.
Early adopters like Victoria-based Anián have launched their resale marketplace, aligning with their commitment to sustainability. Anián’s COO, Jeff Papa, emphasized the brand’s focus on circularity and post-consumer recycled fabrics, sharing the success of their resale site in diverting textile waste from landfills.
Companies like IKEA Canada have also ventured into resale programs, demonstrating a shift towards circular business models that offer value and sustainability. Gray emphasized that resale initiatives do not diminish a brand’s premium status but rather offer a different pricing strategy to cater to a broader market.