Lululemon, a prominent retailer, has entered the resale market trend, where second-hand shopping is transitioning from traditional outlets to brand-owned platforms. The Vancouver-based company has followed suit with other major brands like Canada Goose and Arc’teryx in reconsidering their stance on pre-owned clothing.
This shift is evident at a 25,000-square-foot processing center in Calgary managed by Tersus Solutions, handling Lululemon returns for cleaning, grading, and resale through their Like New service. Tersus, based in Denver, has opened its first Canadian facility for processing both returns and customer-sold Lululemon items nationwide.
The allure for companies in the resale sector lies in the ability to resell products that would otherwise be discarded, fostering customer loyalty by offering credits for future purchases. This approach benefits customers by providing access to newer products at reduced prices and contributes to sustainability efforts.
Lululemon recently introduced its Like New program in Canada, allowing customers to trade pre-owned Lululemon apparel through an online platform. According to the program’s FAQ section, sellers can receive 70% cash or 90% store credit from the sale proceeds.
Maureen Erickson, Lululemon’s senior vice president of retail experience, emphasized the program’s role in extending product life cycles, promoting sustainability, and offering customers a trusted way to continue using quality gear.
At the Tersus Solutions facility in Calgary, returned items undergo inspection, cleaning using an innovative liquid CO2 system, refurbishment, and grading. Despite initially focusing on returns, the facility has experienced a significant influx of orders, processing between 1,000 to 1,500 items daily, exceeding expectations.
Tersus CEO Peter Whitcomb highlighted the profitability of the resale business line, as brands recover value from previously unsellable items. The company collaborates with brands like New Balance, the North Face, and Arc’teryx in the U.S. and plans to expand its operations in Canada.
Retail expert David Ian Gray noted the growing interest among retailers in the second-hand market, driven by consumer demand and economic considerations. Embracing resale under their brand umbrella enables retailers to attract new customers seeking affordable options while diversifying product offerings.
Anián, a clothing company based in Victoria, was an early adopter of resale, launching a platform in 2021 for customers to sell and purchase pre-owned Anián products. COO Jeff Papa emphasized the brand’s commitment to circularity, utilizing recycled fabrics and reducing textile waste through the resale program.
Similarly, IKEA Canada initiated its Sell-back program in 2019, facilitating the return of items for in-store credit. Gray emphasized that the resale model doesn’t devalue premium brands but offers a different pricing strategy to cater to a broader consumer base.