Lululemon, a well-known retailer, has entered the resale market trend by launching its own second-hand shopping platform, following the lead of other major brands like Canada Goose and Arc’teryx. The move signifies a shift towards integrating used clothing resale within brands’ own operations rather than relying solely on thrift stores or online marketplaces.
In Calgary, a 25,000-square-foot processing hub operated by Tersus Solutions handles Lululemon returns, where items are cleaned, graded, and prepared for resale as part of the brand’s Like New service. This facility, the first in Canada for Tersus, not only processes returns but also manages used Lululemon items sold by customers nationwide.
The appeal of resale to companies lies in the opportunity to resell products that might otherwise be discarded, fostering customer loyalty through credit incentives for future purchases. This initiative benefits customers by offering savings on newer products while contributing to sustainability efforts.
Recently introduced in Canada, Lululemon’s Like New program enables customers to buy and sell pre-owned Lululemon clothing through an online platform, facilitating peer-to-peer transactions. Customers can receive 70% cash or 90% store credit for their sold items, promoting a circular economy approach.
At the Tersus Solutions facility, clothing undergoes inspection, cleaning using an innovative liquid CO2 system, refurbishment, and grading. Despite initially focusing on returned items, the facility has experienced a high volume of orders, processing between 1,000 and 1,500 items daily, surpassing expectations.
Tersus CEO Peter Whitcomb highlighted the growth of the company’s U.S. business, emphasizing the value recovery from returned merchandise for brands like New Balance, the North Face, and Arc’teryx. Plans are underway to expand Tersus operations into Canada to cater to the increasing demand for sustainable resale solutions.
Retail analyst David Ian Gray noted the rising popularity of second-hand markets in Canada, with platforms like Facebook Marketplace witnessing significant growth. By incorporating resale within their brand ecosystem, retailers can attract new customers seeking affordable options, thereby diversifying their customer base and product offerings.
Anián, a Victoria-based clothing company, embraced resale early on by launching a dedicated marketplace for customers to sell and buy pre-owned Anián products. The company’s commitment to circularity and sustainability has garnered positive reception, with significant sales and waste diversion achieved through the resale platform.
IKEA Canada’s Sell-back program, initiated in 2019, has also successfully encouraged customer participation in sustainable practices, with thousands of items returned for store credit. The resale trend does not compromise brand value but rather offers an alternative pricing strategy to cater to a broader market segment.
In conclusion, the growing interest in resale initiatives reflects a shift towards sustainable consumption practices and presents opportunities for brands to engage with environmentally conscious consumers while expanding their market reach.