Lululemon, a renowned retailer, has ventured into the resale market, aligning with the trend where second-hand shopping is transitioning from traditional venues like thrift stores to brand-managed platforms. This move follows the footsteps of other prominent brands such as Canada Goose and Arc’teryx, who are also exploring the reutilization of used clothing.
In Calgary, a 25,000-square-foot processing center operated by Tersus Solutions is at the forefront of this transformation, handling the cleaning, grading, and processing of returned Lululemon items for resale through the brand’s Like New service. This facility, the first of its kind in Canada by Tersus, not only manages returns but also processes pre-owned Lululemon products from customers nationwide.
The allure for companies to engage in resale is evident. It presents an opportunity to resell products that would otherwise be discarded, fostering customer loyalty by offering credits for future purchases. This approach benefits consumers by providing access to newer items at reduced prices and contributes significantly to sustainability efforts.
Recently launched in Canada, Lululemon’s Like New initiative allows customers to buy and sell pre-owned Lululemon apparel through an online platform. Customers have the option to receive either 70% of the sale price in cash or 90% in store credit, with the requirement of a purchase receipt for verification, although some items may be eligible for trade-in without a receipt.
Tersus Solutions’ facility in Calgary utilizes a unique liquid CO2 cleaning system for processing garments, emphasizing waterless cleaning methods. Despite the current focus on processing returns, the facility has experienced a substantial influx of orders, surpassing initial expectations with daily volumes ranging from 1,000 to 1,500 items.
Peter Whitcomb, CEO of Tersus, highlighted the increasing demand for recovering value from returned and used merchandise among brands in the U.S., noting the significant growth of their business over the past five years. Collaborating with brands such as New Balance, The North Face, and Arc’teryx, Tersus plans to expand its operations in Canada to meet the escalating market demand.
Retail analyst David Ian Gray emphasized the growing popularity of second-hand markets in Canada, with a notable percentage of consumers engaging in pre-owned item transactions. By integrating resale platforms under their brand umbrella, retailers can attract new customers seeking cost-effective alternatives without compromising on quality.
Anián, a Victoria-based clothing company, set a precedent by launching its resale platform in 2021, emphasizing sustainability through circular practices. Similarly, IKEA Canada introduced its Sell-back program in 2019, demonstrating the industry-wide shift towards embracing resale as a viable market strategy that offers value to both consumers and brands without diluting brand positioning.