Lululemon has entered the resale market trend by launching its own second-hand platform, following the footsteps of other renowned brands like Canada Goose and Arc’teryx. The company has partnered with Tersus Solutions to process returned items at a 25,000-square-foot facility in Calgary for resale through its Like New service.
This move towards resale is driven by the opportunity for brands to resell products that would otherwise be discarded, while also fostering customer loyalty through credit rewards. Customers stand to benefit from discounted prices on premium items and contribute to sustainability efforts. Lululemon’s Like New program, introduced in Canada recently, enables customers to buy and sell pre-owned Lululemon clothing online.
Through this initiative, customers can receive either 70% of the sale price in cash or 90% in store credit. Items for sale require proof of purchase, but some items without receipts may still be eligible for trade-in. The company’s senior vice president, Maureen Erickson, emphasized the program’s role in extending the lifespan of their products.
At the Calgary facility, Tersus Solutions employs a waterless cleaning technology to inspect, clean, refurbish, and grade returned items. The facility has experienced a significant volume of orders, exceeding expectations, and has been receiving between 1,000 and 1,500 items daily.
Tersus CEO Peter Whitcomb highlighted the growing interest among brands in recovering value from returned and used goods, noting the significant profitability potential in reselling damaged items. The company plans to expand its operations in Canada, having already partnered with brands like New Balance, the North Face, and Arc’teryx in the U.S.
Retail analyst David Ian Gray pointed out the increasing popularity of second-hand markets among Canadian consumers, with a significant portion opting for pre-owned items. By integrating resale platforms, retailers can reach a broader customer base seeking affordable options without compromising quality.
Anián, a Victoria-based brand, has been an early adopter of resale, offering a marketplace for customers to sell their products. COO Jeff Papa highlighted the brand’s commitment to sustainability and circularity, with the resale site contributing to waste reduction and generating substantial sales.
In conclusion, the shift towards resale presents an opportunity for brands to tap into a growing market segment, provide value to customers seeking affordable options, and contribute to sustainable practices without compromising brand image.
