Lululemon has joined the trend of retailers entering the resale market as the popularity of second-hand shopping shifts towards brands’ own platforms. This move aligns Lululemon with other notable brands like Canada Goose and Arc’teryx who are reimagining their strategies around pre-owned clothing.
In Calgary, Tersus Solutions operates a 25,000-square-foot processing center where returned Lululemon items undergo cleaning, grading, and preparation for resale under the brand’s Like New service. This facility is Tersus Solutions’ first in Canada and will not only handle returns but also manage the resale of used Lululemon products from customers nationwide.
The shift towards resale benefits companies by allowing them to recover value from items that would otherwise be written off, while also fostering customer loyalty through credit rewards for future purchases. Customers, in turn, enjoy savings on newer products and contribute to sustainability efforts.
Recently launched in Canada, Lululemon’s Like New program enables customers to buy and sell pre-owned Lululemon apparel through an online platform. Participants can receive either cash or store credit, with options for trade-ins even without a receipt for certain items.
While Lululemon declined an interview, Maureen Erickson, the senior vice-president of retail experience, emphasized the program’s extension of product lifespan, providing customers with a trusted avenue to keep quality gear in use.
At the Tersus Solutions facility in Calgary, a specialized liquid CO2 cleaning system is used to inspect, clean, and grade clothing items. Despite the current focus on returned goods, the facility has experienced a high volume of orders, surpassing initial expectations.
Tersus CEO Peter Whitcomb highlighted the substantial growth of their U.S. business, emphasizing the value recovery potential from damaged goods. Tersus plans to expand its operations in Canada, collaborating with brands such as New Balance, the North Face, and Arc’teryx.
Retail analyst David Ian Gray noted the increasing prevalence of second-hand markets like Facebook Marketplace in Canada, with a significant portion of Canadians engaging in pre-owned shopping. Retailers leveraging resale initiatives can attract new customers and cater to varying budget constraints.
Anián, a Victoria-based clothing company, embraced resale early on by launching a platform for customers to resell their products. COO Jeff Papa emphasized Anián’s commitment to circularity and sustainability, with the resale site driving sales and diverting textile waste from landfills.
IKEA Canada’s Sell-back program, initiated in 2019, demonstrates another successful resale model, indicating a growing trend among companies to offer sustainable and cost-effective options without compromising brand integrity.
