Lululemon, a Vancouver-based company specializing in athletic and leisurewear, has entered the resale market trend alongside other prominent brands like Canada Goose and Arc’teryx. This strategic move involves processing returned Lululemon items at a 25,000-square-foot facility in Calgary managed by Tersus Solutions. The facility, the first of its kind in Canada, focuses on cleaning, grading, and preparing Lululemon products for resale through the brand’s Like New service.
The appeal of resale for companies lies in the opportunity to extend the lifespan of products that would otherwise be discarded. By engaging in resale, brands can attract customer loyalty and offer them credit for future purchases. This approach benefits customers by providing access to discounted products while also promoting sustainability.
Lululemon recently introduced its Like New program in Canada, allowing customers to buy and sell pre-owned Lululemon clothing through an online platform. According to the program’s FAQ page, sellers can receive either 70% of the sale price in cash or 90% in store credit. To list an item for sale, proof of purchase is typically required, although some items may be eligible for trade-in without a receipt.
Tersus Solutions, the company managing the processing hub in Calgary, utilizes an innovative liquid CO2 cleaning system that eliminates the need for water in the refurbishing process. Despite initially focusing on handling returns, the facility has been inundated with orders, processing between 1,000 and 1,500 items daily. Tersus CEO Peter Whitcomb highlighted the increasing interest from brands like New Balance, the North Face, and Arc’teryx in recovering value from returned and used merchandise.
Retail analyst David Ian Gray emphasized the growing popularity of second-hand markets among Canadian consumers. By integrating resale into their brand strategy, retailers can appeal to a broader customer base seeking affordable options. This approach not only attracts new customers but also offers different price points and quality levels, especially appealing to budget-conscious individuals.
Anián, a clothing company based in Victoria, was an early adopter of the resale concept, establishing its own marketplace for customers to sell and purchase Anián products. The company’s COO, Jeff Papa, highlighted the sustainability aspect of their program, emphasizing the reduction of textile waste and the positive environmental impact achieved through resale.
In conclusion, the rise of resale initiatives among retailers signifies a shift towards a more sustainable and consumer-friendly approach to shopping. By embracing the resale market, companies like Lululemon are not only extending the life cycle of their products but also appealing to a diverse range of customers seeking affordable and eco-conscious options.