Lululemon, a Vancouver-based company known for its athletic and leisurewear, has ventured into the resale market, following a trend where second-hand shopping is becoming more integrated into brands’ own platforms rather than just thrift stores or online marketplaces. This move aligns Lululemon with other major brands like Canada Goose and Arc’teryx, who are also reimagining their strategies around pre-owned clothing.
To facilitate this shift, Lululemon has partnered with Tersus Solutions, a Denver-based company, to operate a 25,000-square-foot processing hub in Calgary. At this facility, returned Lululemon items are meticulously cleaned, assessed, and prepared for resale under the brand’s Like New service. Beyond handling returns, Tersus Solutions will also manage the resale of used Lululemon items from customers nationwide.
The motivation behind brands embracing resale is clear: it allows them to recover value from products that would otherwise be discarded while fostering customer loyalty. Buyers benefit by accessing discounted products, and the environmental impact of prolonging the lifespan of items is significant.
Recently introduced in Canada, Lululemon’s Like New initiative enables customers to buy and sell pre-owned Lululemon clothing through an online platform. Sellers can earn either 70% cash or 90% store credit from the sale, with proof of purchase required for listing. Additionally, some items without receipts may still be eligible for trade-ins.
Maureen Erickson, Lululemon’s senior vice-president of retail experience, expressed the company’s commitment to extending the life cycle of their products through initiatives like Like New, emphasizing the value of keeping quality gear in use.
Tersus Solutions’ CEO, Peter Whitcomb, highlighted the growth of their business in the U.S. over the past five years, mentioning partnerships with brands like New Balance and the North Face. The company’s Calgary facility, focused on processing returned items for resale, has seen a surge in demand, with thousands of items processed daily, surpassing initial expectations.
Retail analyst David Ian Gray noted the increasing popularity of second-hand markets in Canada, with a substantial percentage of Canadians engaging in pre-owned shopping. For retailers like Lululemon, entering the resale space offers an opportunity to attract new customers and cater to diverse budgetary needs without compromising brand integrity.
Anián, a Victoria-based clothing company, has been an early advocate for resale, with a platform enabling customers to resell their Anián products to fellow shoppers. This approach aligns with the company’s sustainability focus, utilizing post-consumer recycled fabrics and diverting textile waste from landfills.
While some may perceive resale as devaluing premium brands, Gray emphasizes that it is a strategic shift towards offering products at different price points rather than discounting. Companies like IKEA Canada have also embraced resale programs, showcasing the broader industry trend towards a more circular and sustainable retail model.