Lululemon, a Vancouver-based company known for athletic and leisurewear, has entered the resale market trend, aligning with other major brands like Canada Goose and Arc’teryx. This move signifies a shift towards incorporating second-hand shopping within brands’ own platforms rather than traditional thrift stores or online marketplaces.
In Calgary, a 25,000-square-foot processing center managed by Tersus Solutions handles Lululemon returns through their Like New service. This facility, the first in Canada for Tersus, not only processes returns but also manages pre-owned Lululemon items for resale nationwide.
The appeal of resale to companies lies in the ability to re-sell products that would typically be written off, fostering customer loyalty through credit rewards while promoting sustainability. Lululemon’s Like New service, launched in Canada recently, enables customers to buy and sell pre-owned Lululemon clothing through their online platform.
Customers participating in Like New can receive 70% of the sale price in cash or 90% in store credit, with proof of purchase required for selling items. Lululemon’s Senior Vice President of Retail Experience, Maureen Erickson, highlighted the program’s focus on extending the life of products to benefit both customers and the environment.
At the Calgary facility, Tersus Solutions utilizes an innovative liquid CO2 cleaning system to inspect, clean, refurbish, and grade clothing items. Despite primarily handling returns currently, the facility has seen a significant volume of orders, processing between 1,000 to 1,500 items daily, exceeding initial expectations.
Peter Whitcomb, CEO of Tersus Solutions, noted the growing trend among brands in the U.S. to recover value from returned and used merchandise. This strategy, he explained, allows brands to tap into a lucrative business line by reselling damaged goods that would otherwise be written off.
Retail analyst David Ian Gray emphasized the increasing popularity of second-hand markets in Canada, with many retailers, including Lululemon, embracing resale platforms to cater to a broader customer base seeking affordability and quality.
Anián, a Victoria-based clothing company, embraced resale early on, launching its own marketplace for customers to sell and purchase pre-owned products. The COO, Jeff Papa, highlighted the environmental and economic benefits of their resale platform, driving both sales and waste reduction.
In conclusion, the rising trend of resale within the retail industry presents opportunities for brands to engage with customers, promote sustainability, and tap into new revenue streams without compromising their brand positioning.
