Lululemon has entered the resale market, aligning with the trend of second-hand shopping moving beyond traditional avenues to brands’ own platforms. The Vancouver-based company is following in the footsteps of other major brands like Canada Goose and Arc’teryx, which are also reevaluating their stance on pre-owned clothing.
The impact of this shift is evident at a 25,000-square-foot processing center in Calgary operated by Tersus Solutions. Here, Lululemon returns undergo cleaning, grading, and preparation for resale as part of the brand’s Like New service, marking Tersus’ first Canadian facility. In addition to handling returns, Tersus will manage the resale of used Lululemon items from customers nationwide.
The appeal of resale for companies lies in the opportunity to recapture value from products that would otherwise be written off. It also fosters customer loyalty by offering credit for future purchases, while enabling buyers to save on newer items and promoting sustainability.
Recently launched in Canada, Lululemon’s Like New program allows customers to buy and sell pre-owned Lululemon clothing through an online platform. Sellers can receive 70% of the sale price in cash or 90% in store credit, contingent on providing a receipt for proof of purchase.
At the Tersus Solutions facility in Calgary, clothing undergoes inspection, cleaning using a specialized liquid CO2 system, and refurbishment. The facility has been handling a substantial volume of orders, primarily comprising in-store and online returns, surpassing initial expectations.
Tersus’ CEO highlighted the growth of their U.S. business and emphasized the profitability of resale for brands. This sustainable approach is resonating with consumers, as evidenced by a DIG360/Angus Reid Institute study showing a significant portion of Canadians engaging in pre-owned shopping.
By embracing resale, retailers like Lululemon can attract new customers and offer diverse price points without compromising brand perception. Anián, a Victoria-based company, has successfully integrated resale into its business model, achieving significant engagement and sales while contributing to waste reduction efforts.
IKEA Canada’s Sell-back program, initiated in 2019, has also demonstrated the viability of resale initiatives, showcasing a circular economy approach that benefits both consumers and the environment. This strategy emphasizes a shift in pricing dynamics rather than devaluing premium brands.