Lululemon, a Vancouver-based brand specializing in athletic and leisurewear, has ventured into the resale market, aligning with the trend of second-hand shopping transitioning from traditional venues like thrift stores and online marketplaces to brands’ own platforms. This move mirrors similar initiatives by major brands such as Canada Goose and Arc’teryx, indicating a shift in the industry’s perception of used clothing.
The company has partnered with Tersus Solutions, operating a 25,000-square-foot processing facility in Calgary, to manage Lululemon returns through its Like New service. This facility, the first in Canada for Tersus, not only handles returns but also processes pre-owned Lululemon items from customers nationwide for resale.
The appeal for companies like Lululemon to engage in resale lies in the opportunity to recapture value from products that would otherwise be discarded. Through the Like New service, customers can both buy and sell their pre-owned Lululemon clothing on the brand’s online platform, receiving either cash or store credit for their sales.
Maureen Erickson, Lululemon’s senior vice-president of retail experience, emphasized the brand’s commitment to sustainability by extending the lifespan of their products through initiatives like Like New. Tersus CEO Peter Whitcomb highlighted the significant growth in the resale sector, underlining its appeal to brands seeking to recover value from returned and used merchandise.
Analysts like David Ian Gray recognize the growing popularity of second-hand markets among consumers, with a significant portion of Canadians engaging in buying pre-owned items. By integrating resale into their brand offerings, retailers can attract new customers and cater to a wider range of price points, without compromising their brand positioning.
Early adopters like Anián, a Victoria-based clothing company, have successfully implemented resale platforms, demonstrating the potential for circularity in fashion and the positive impact on waste reduction. Companies like IKEA Canada have also embraced resale programs, further illustrating the industry’s shift towards sustainable and value-driven practices.
The evolution of resale in the retail landscape signifies a strategic approach for brands to connect with consumers, promote sustainability, and tap into new market segments without diluting their brand identity or pricing strategies.