Lululemon, a Vancouver-based company known for its athletic and leisurewear, has entered the resale market, reflecting a trend where brands are embracing second-hand shopping within their own systems. This move aligns Lululemon with other major brands like Canada Goose and Arc’teryx, who are also reevaluating their stance on pre-owned clothing.
The shift is evident at a 25,000-square-foot processing center in Calgary managed by Tersus Solutions, where returned Lululemon items are meticulously cleaned, assessed, and prepared for resale under the brand’s Like New service. This facility, the first in Canada for Tersus, not only handles returns but also manages used Lululemon items sold by customers nationwide.
The appeal for companies to venture into resale lies in the potential to resurrect products that would otherwise be discarded, while fostering customer loyalty through credit incentives for future purchases. This dual benefit offers customers access to discounted newer products and contributes to sustainability efforts.
Lululemon recently introduced Like New in Canada, allowing customers to buy and sell pre-owned Lululemon apparel through an online platform. Participants can receive 70% of the sale price in cash or opt for 90% in store credit, as outlined on the brand’s FAQ page. Proof of purchase is required for selling items, though certain products may qualify for trade-ins without a receipt.
Maureen Erickson, Lululemon’s senior vice-president of retail experience, emphasized the brand’s commitment to quality and durability, stating that the Like New program extends the lifespan of their products, providing customers with a trusted avenue to keep their gear in use.
Tersus Solutions’ CEO, Peter Whitcomb, highlighted the company’s success in the U.S. and its collaboration with various brands, including New Balance and Arc’teryx, signaling plans for further expansion in Canada. Additionally, retail analyst David Ian Gray noted the growing popularity of second-hand markets in Canada, with retailers leveraging their own resale platforms to attract a broader customer base seeking affordability and quality.
Early adopters like Anián, a Victoria-based clothing company, have integrated resale into their business model, witnessing significant traffic and sales through their marketplace. By engaging in resale, companies like Anián contribute to a circular economy, reduce textile waste, and offer customers a cost-effective entry point into their brand without compromising quality or exclusivity.