Lululemon has entered the resale market trend by launching its own Like New service, following the footsteps of other major brands such as Canada Goose and Arc’teryx. This move reflects a shift in the industry towards brands taking control of the second-hand market within their own ecosystems.
Located in Calgary, a 25,000-square-foot facility operated by Tersus Solutions plays a key role in processing returned Lululemon items for resale. This marks Tersus’ first facility in Canada, handling not only returns but also pre-owned Lululemon items from customers nationwide.
The appeal for companies to embrace resale lies in the opportunity to give products a new life and earn customer loyalty through credit rewards. Customers benefit from cost savings on premium products, and the sustainability aspect is also attractive.
Customers in Canada can now participate in Lululemon’s Like New program, where they can buy and sell pre-owned Lululemon clothing through an online platform. Sellers can receive either 70% cash or 90% store credit for their items, with certain items eligible for trade-ins without receipts.
Tersus Solutions’ cleaning and refurbishing processes in Calgary are receiving a significant volume of items daily, with a focus on returned items for resale. The company’s CEO, Peter Whitcomb, highlighted the profitability of resale for brands, citing it as a high-margin business line due to the resale of damaged goods.
Retail expert David Ian Gray noted the growing trend of consumers engaging in pre-owned shopping, with 77% of Canadians participating in buying second-hand items. For retailers like Lululemon, offering resale under their brand can attract new customers and cater to varying budget constraints.
Anián, a Victoria-based clothing company, was an early adopter of resale with its own marketplace launched in 2021. The company’s COO, Jeff Papa, emphasized the circularity principle embedded in their business model, showcasing the success of their resale platform in diverting textile waste from landfills.
IKEA Canada’s Sell-back program, initiated in 2019, has also seen success in encouraging customers to return items for store credit, without compromising the brand’s premium image. Resale initiatives are not about discounting products but rather expanding offerings at different price points to cater to diverse consumer needs.