Lululemon, a well-known athletic and leisurewear brand based in Vancouver, has recently ventured into the resale market trend, joining the likes of Canada Goose and Arc’teryx in reimagining their approach to second-hand clothing. This shift is evident at a 25,000-square-foot processing center in Calgary operated by Tersus Solutions, where returned Lululemon items are meticulously cleaned, graded, and prepared for resale through the brand’s new Like New service.
The allure of resale for companies is clear: it allows products that might have been discarded to have another chance at being sold, fostering buyer loyalty and offering customers the opportunity to save on newer items while promoting sustainability. Lululemon introduced its Like New program in Canada recently, enabling customers to trade their pre-owned Lululemon apparel with fellow customers via an online platform.
Customers participating in the program can receive either 70% of the sale price in cash or 90% in store credit, as outlined on the FAQ page. To list an item, proof of purchase is required, though certain items without receipts may still be eligible for trade-in, as stated on the Like New website. Maureen Erickson, Lululemon’s senior vice-president of retail experience, emphasized the brand’s commitment to extending the lifespan of their products through initiatives like Like New.
Tersus Solutions’ Calgary facility utilizes an innovative liquid CO2 cleaning system that does not rely on water to inspect, clean, refurbish, and grade clothing items. Although the focus currently lies on processing returned items for resale, the facility has been inundated with a high volume of orders, exceeding expectations. Tersus CEO Peter Whitcomb highlighted the company’s growth in the U.S. and its collaboration with prominent brands like New Balance and The North Face, with plans to further expand operations in Canada.
Retail expert David Ian Gray noted the increasing popularity of second-hand markets in Canada, with retailers recognizing the potential of offering resale options to attract a broader customer base and cater to varying price points. Anián, a clothing company based in Victoria, embraced resale early on, establishing a platform for customers to resell their Anián products to others. COO Jeff Papa emphasized Anián’s commitment to sustainability and circularity, with the resale site achieving significant traction and waste diversion.
Companies like IKEA Canada have also embraced resale initiatives, such as the Sell-back program, demonstrating a shift towards sustainable practices without compromising brand integrity. Gray emphasized that offering resale options does not equate to devaluing premium brands but rather presents an alternative pricing strategy to cater to diverse consumer needs and preferences.