Lululemon, a Vancouver-based company known for athletic and leisurewear, has entered the resale market, following the trend of more brands embracing second-hand shopping within their own platforms. This move aligns Lululemon with other major brands like Canada Goose and Arc’teryx, who are reevaluating their strategies around pre-owned clothing.
The company has partnered with Tersus Solutions, a Denver-based firm, to operate a 25,000-square-foot processing center in Calgary. At this facility, Lululemon returns are meticulously cleaned, assessed, and prepared for resale as part of the brand’s “Like New” service. Tersus will also manage used Lululemon items from customers nationwide, further expanding the reach of this initiative.
The appeal for companies to venture into resale lies in the opportunity to extend the lifespan of products that would otherwise be discarded. By engaging in resale, businesses not only recover value from returned goods but also cultivate customer loyalty. Through programs like “Like New,” customers can save on purchasing newer items and contribute to sustainability efforts.
Lululemon recently introduced its Like New platform in Canada, enabling customers to buy and sell pre-owned Lululemon clothing online. Participants can earn either 70% of the sale price in cash or 90% in store credit. To sell items, proof of purchase is required, although some items may be eligible for trade-in even without a receipt.
While Tersus primarily processes returned items for resale at present, the volume of orders received has exceeded expectations. The facility receives between 1,000 and 1,500 items daily, showcasing the growing demand for such services. Tersus CEO Peter Whitcomb highlighted the profitability of this business line, emphasizing the value it brings to brands by repurposing damaged goods for resale.
Retail analyst David Ian Gray noted the increasing popularity of pre-owned markets like Facebook Marketplace in Canada. By integrating resale into their brand offerings, retailers can attract a broader customer base seeking quality products at different price points. The shift towards resale aligns with changing consumer preferences and economic realities, providing an avenue for both buyers and sellers to engage with brands in new ways.