Lululemon, a well-known athletic and leisurewear brand based in Vancouver, has entered the resale market trend, where second-hand shopping is gaining popularity within brands’ own systems rather than just thrift stores or online platforms. This move aligns with the strategies of other prominent brands like Canada Goose and Arc’teryx, who are also reevaluating their stance on used clothing.
In Calgary, a 25,000-square-foot facility operated by Tersus Solutions processes returned Lululemon items for resale under the Like New service. This facility not only handles returns but also manages pre-owned Lululemon products brought in by customers nationwide. The concept of resale appeals to companies as it allows them to recover value from items that would typically be discarded, while also fostering customer loyalty through credit rewards for future purchases.
The Like New program was recently launched by Lululemon in Canada, enabling customers to trade their pre-owned Lululemon apparel through an online platform. Customers can earn either 70% of the sale price in cash or 90% in store credit, as detailed on the program’s FAQ page. To sell an item, proof of purchase is required, although some items without a receipt may still be eligible for trade-in.
At the Calgary facility, Tersus Solutions employs a unique liquid CO2 cleaning system to inspect, clean, and refurbish returned items. Despite initially focusing on returns, the facility has experienced a remarkable volume of orders, processing between 1,000 and 1,500 items daily, surpassing expectations.
Tersus CEO Peter Whitcomb highlighted the significant growth in the U.S. market for returned and used merchandise, emphasizing the profitability of this aspect of their business. As brands seek to capitalize on the popularity of the second-hand market, the expansion of such initiatives is anticipated in Canada.
Retail analyst David Ian Gray noted the increasing appeal of second-hand shopping in Canada, with a DIG360/Angus Reid Institute study revealing that 77% of Canadians engaged in purchasing pre-owned items. By integrating resale into their brand, retailers can attract a broader customer base, offering varied price points and quality levels to cater to diverse consumer needs.
Anián, a clothing company based in Victoria, embraced resale early on by launching a marketplace for customers to sell their products in 2021. COO Jeff Papa highlighted the environmental benefits of this initiative, emphasizing the company’s commitment to sustainability through circular practices. IKEA Canada also introduced a Sell-back program in 2019, demonstrating the increasing adoption of resale strategies across different industries.
In conclusion, the shift towards resale not only promotes sustainability but also opens up new avenues for brands to engage with customers and expand their market reach without compromising their brand image or pricing strategies.