Lululemon, a Vancouver-based athletic and leisurewear company, has entered the resale market, following the trend of second-hand shopping moving beyond traditional thrift stores and online platforms. The company is now offering a Like New service where returned Lululemon items are processed for resale at a 25,000-square-foot facility in Calgary managed by Tersus Solutions. This move aligns Lululemon with other major brands like Canada Goose and Arc’teryx that are reevaluating their approach to pre-owned clothing.
The appeal for companies like Lululemon in entering the resale market lies in the opportunity to resell products that would otherwise be discarded, while also fostering customer loyalty through credit rewards that can be used for future purchases. The brand’s Like New program, launched in Canada recently, enables customers to buy and sell pre-owned Lululemon clothing directly 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 sell items, proof of purchase is required, although some items may be eligible for trade-in without a receipt, as stated on the program’s website. The initiative aims to extend the lifespan of Lululemon products and provide a trusted avenue for customers to continue using high-quality gear.
At the processing hub in Calgary, Tersus Solutions utilizes a unique liquid CO2 cleaning system that eliminates the need for water in the refurbishment process of returned items. The facility has experienced a high volume of orders, processing between 1,000 and 1,500 items daily, surpassing initial expectations. Tersus CEO Peter Whitcomb highlighted the increasing interest from brands like New Balance, The North Face, and Arc’teryx in recovering value from returned and used merchandise.
Retail analyst David Ian Gray noted the growing trend of retailers entering the second-hand market to attract customers seeking affordable options and different quality levels. The resale model allows brands to tap into a broader customer base while offering sustainable shopping choices. Early adopters like Anián, a Victoria-based clothing company, have seen success in their resale marketplace, emphasizing the importance of circularity and environmental sustainability.
In conclusion, the shift towards resale initiatives in the retail industry reflects a strategic move by brands like Lululemon to cater to evolving consumer preferences and promote a more sustainable approach to fashion consumption.
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