Lululemon, a Vancouver-based company known for its athletic and leisurewear, has entered the resale market trend by launching its Like New service in Canada. This move aligns with a growing shift in the retail industry towards incorporating second-hand shopping within brands’ own platforms.
The company has set up a 25,000-square-foot processing center in Calgary in partnership with Tersus Solutions, a Denver-based company. At this facility, returned Lululemon items are thoroughly cleaned, graded, and prepared for resale. The service not only benefits customers by offering them a chance to buy and sell pre-owned Lululemon clothing but also promotes sustainability by extending the lifespan of products.
Customers participating in the Like New program can receive either 70% of the sale price in cash or 90% in store credit. To list an item for sale, proof of purchase is required, although some items may qualify for trade-in without a receipt.
Tersus Solutions’ CEO, Peter Whitcomb, highlighted the success of the company’s U.S. operations, which have seen significant growth in recent years. The facility in Calgary, primarily focusing on processing returns for resale, has been receiving a high volume of items daily, surpassing initial expectations.
Retail analyst David Ian Gray emphasized the increasing popularity of second-hand shopping in Canada, with a significant percentage of Canadians engaging in buying pre-owned items. By incorporating resale into their business model, retailers like Lululemon can attract new customers looking for quality products at different price points.
Anián, a Victoria-based clothing company, was an early adopter of the resale concept, creating a platform for customers to sell their Anián products to others. This initiative has not only generated sales but also contributed to reducing textile waste, reflecting a commitment to sustainability.
Overall, the shift towards resale within the retail industry offers brands the opportunity to appeal to a broader customer base and promote environmental consciousness without compromising their brand image or pricing strategy.