Lululemon, a well-known retailer, has entered the resale market trend, where second-hand shopping is transitioning from traditional thrift stores and online platforms to brands’ own systems. The company, based in Vancouver, is following the footsteps of other prominent brands like Canada Goose and Arc’teryx in exploring the resale of used clothing.
One significant development is the operation of a 25,000-square-foot processing center in Calgary by Tersus Solutions, handling Lululemon returns by cleaning, grading, and preparing them for resale through the brand’s Like New service. This facility, the first in Canada for Tersus, not only manages returns but also processes pre-owned Lululemon items sold by customers nationwide.
The appeal for companies to embrace resale lies in the opportunity to resell products that might otherwise be discarded, earning customer loyalty through credit rewards that can be used on future purchases. This approach benefits customers by offering savings on newer items and contributes positively to sustainability efforts.
Recently launched in Canada, Lululemon’s Like New platform allows customers to buy and sell pre-owned Lululemon clothing online. According to the platform’s FAQ section, sellers can receive either 70% of the sale price in cash or 90% in store credit. Proof of purchase is required for listing an item, but some products may be eligible for trade-in without a receipt.
While Lululemon chose not to provide an interview, Maureen Erickson, the company’s senior vice president of retail experience, emphasized the brand’s commitment to quality and performance, extending the lifespan of their products with the Like New initiative.
At Tersus Solutions’ Calgary facility, a specialized liquid CO2 cleaning system is used to inspect, clean, and refurbish clothing items. Despite the current focus on processing returns, the facility has experienced a remarkable volume of orders, with daily receipts ranging from 1,000 to 1,500 items.
Peter Whitcomb, CEO of Tersus Solutions, highlighted the significant growth of the company’s U.S. business over the past five years, partnering with brands like New Balance and the North Face. He emphasized the value recovery potential from returned and used merchandise, making it a lucrative business line for many brands.
Retail analyst David Ian Gray noted the increasing popularity of pre-owned shopping in Canada, with a DIG360/Angus Reid Institute study revealing that 77% of Canadians have purchased pre-owned items within the past year. Bringing resale under their brand umbrella enables retailers to attract new customers seeking discounted options and different quality levels.
Anian, a Victoria-based clothing company, was an early adopter of resale, launching its own marketplace in 2021 for customers to sell and buy Anian products. COO Jeff Papa emphasized the company’s commitment to circularity and sustainability, with the resale site generating significant sales and diverting textile waste from landfills.
In conclusion, the shift towards resale represents a strategic move for brands to tap into the growing second-hand market, offering customers alternative purchasing options while promoting sustainability and extending the lifecycle of products.