Lululemon has entered the resale market trend, joining other major brands like Canada Goose and Arc’teryx in reevaluating their approach to second-hand clothing. In Calgary, a 25,000-square-foot processing hub managed by Tersus Solutions handles Lululemon returns, cleaning, grading, and preparing them for resale through the brand’s Like New service. This facility marks Tersus’ first Canadian location and will also manage pre-owned Lululemon items sold by customers nationwide.
The appeal of resale for companies lies in the opportunity to resell products that would have otherwise been written off, while also fostering customer loyalty through credit rewards that can be used towards future purchases. This not only benefits customers by offering savings on newer items but also contributes to sustainability efforts. Lululemon recently introduced its Like New program in Canada, allowing customers to buy and sell pre-owned Lululemon clothing through an online platform.
Customers participating in the Like New program can receive either 70% of the sale price in cash or 90% in store credit. To list an item, proof of purchase is required, although some items may be eligible for trade-in without a receipt. Lululemon’s senior vice-president of retail experience, Maureen Erickson, emphasized the program’s role in extending the lifespan of products, providing a trusted avenue for customers to keep quality gear in use.
At the Tersus Solutions facility in Calgary, returned items undergo inspection, cleaning using a waterless liquid CO2 system, refurbishment, and grading. Despite currently focusing on returned items, the facility has been processing a significant volume of orders, receiving between 1,000 and 1,500 items daily. Tersus CEO Peter Whitcomb highlighted that the resale business line has become a lucrative venture for brands, recovering value from otherwise discarded merchandise.
Retail analyst David Ian Gray noted the increasing popularity of second-hand markets, with platforms like Facebook Marketplace witnessing substantial growth in the buying and selling of pre-owned items in Canada. Retailers incorporating resale under their brand umbrella can attract new customers seeking affordable options and different quality levels. This move not only broadens the customer base but also provides economic relief to those managing tight budgets.
Anián, a Victoria-based clothing company, embraced resale early on by launching its own marketplace for customers to sell Anián products in 2021. The company’s commitment to circularity and sustainability has resonated with customers, resulting in significant visits to the resale site and notable sales figures. Embracing resale initiatives doesn’t equate to discounting premium brands; instead, it offers a different price point strategy to cater to a broader audience.
