Lululemon has entered the resale market trend by launching its own Like New service, following a growing shift towards second-hand shopping within brand ecosystems. The Vancouver-based company is joining the likes of Canada Goose and Arc’teryx in reimagining their approach to used clothing.
Operated by Tersus Solutions in Calgary, a 25,000-square-foot processing hub handles Lululemon returns, cleaning, grading, and preparing them for resale. This move is part of Lululemon’s strategy to extend the lifespan of its products while providing customers with an opportunity to buy and sell pre-owned items through their online platform.
The appeal for brands to embrace resale lies in the opportunity to recover value from returned goods, offer customers affordable options, and promote sustainability. Lululemon’s Like New program, launched in Canada recently, allows customers to earn either cash or store credit when selling their items, with the aim of maintaining product quality and performance standards beyond a single ownership.
At the Tersus Solutions facility, clothing undergoes inspection, cleaning using an innovative liquid CO2 system, and refurbishment before being put up for resale. The facility, which primarily focuses on processing returned items currently, has seen a significant influx of orders, exceeding expectations, with plans for further expansion in Canada.
Retail analyst David Ian Gray highlights the increasing popularity of second-hand markets like Facebook Marketplace, emphasizing the potential for retailers to attract new customers and offer diverse price points through resale initiatives. Anián, a clothing company based in Victoria, has been an early adopter of resale, witnessing success with its own marketplace that aligns with its sustainability principles.
Companies like IKEA Canada have also ventured into resale programs, demonstrating a shift towards a circular economy model without compromising brand value. Resale initiatives are not about discounting premium brands but rather providing alternative price points to cater to a broader range of consumers.