Lululemon has ventured into the resale market trend, following the footsteps of other prominent brands like Canada Goose and Arc’teryx. This move signifies a shift towards incorporating second-hand shopping within brands’ own platforms.
In Calgary, a 25,000-square-foot processing center managed by Tersus Solutions handles Lululemon returns for cleaning, grading, and resale through the brand’s Like New service. This facility marks Tersus’s first establishment in Canada, catering not only to returns but also managing pre-owned Lululemon items for resale nationwide.
The appeal for companies to embrace resale lies in the opportunity to revitalize products that would otherwise be disregarded, allowing for potential resale and fostering customer loyalty through credit rewards for future purchases. This approach benefits customers by offering savings on newer items while promoting sustainability.
Recently launched in Canada, Lululemon’s Like New program enables customers to engage in buying and selling pre-owned Lululemon apparel via an online platform. Participants can receive either 70% cash or 90% store credit from the sale price, contingent on providing a purchase receipt or opting for a trade-in for select items without receipts.
Tersus Solutions in Calgary utilizes an innovative liquid CO2 cleaning method to refurbish and grade clothing items, with a notable influx of 1,000 to 1,500 items processed daily. The facility’s focus on returned items has garnered exceptional demand, surpassing initial expectations.
Peter Whitcomb, CEO of Tersus Solutions, highlights the substantial growth the company has witnessed in the U.S. over the past five years by collaborating with brands such as New Balance and the North Face. With plans to expand operations in Canada, Tersus remains pivotal in assisting brands to recover value from returned and used merchandise.
Retail analyst David Ian Gray emphasizes the increasing prominence of the second-hand market, with Canadian consumers actively engaging in pre-owned shopping. By integrating resale platforms, retailers can attract a broader customer base seeking affordability and diverse product offerings.
Anián, a Victoria-based clothing company, ventured into resale early on, establishing a platform for customers to resell their products in 2021. This initiative aligns with Anián’s commitment to sustainability, utilizing post-consumer recycled fabrics and fostering a circular economy.
IKEA Canada’s Sell-back program, initiated in 2019, reflects another example of a brand embracing resale practices. By incorporating resale within their brand ecosystem, retailers can cater to a wider audience without compromising their premium status but offering alternative price points for varied consumer segments.