Lululemon, a popular retailer, has entered the resale market trend by launching its own second-hand platform, following the footsteps of other well-known brands like Canada Goose and Arc’teryx. This move signifies a shift towards incorporating used clothing within brands’ ecosystems rather than solely relying on thrift stores and online marketplaces.
The company’s initiative, named Like New, involves a 25,000-square-foot processing center in Calgary operated by Tersus Solutions, a Denver-based company. Here, returned Lululemon items are meticulously cleaned, graded, and prepared for resale. The facility not only handles returns but also manages pre-owned Lululemon products sold by customers nationwide.
The appeal for brands to delve into resale lies in the opportunity to resell products that would have otherwise been discarded, while fostering customer loyalty through credit rewards. This approach benefits customers by offering savings on newer items and contributes significantly to sustainability efforts.
Recently launched in Canada, Like New enables customers to participate in buying and selling pre-owned Lululemon apparel through an online platform. Customers can receive either 70% cash or 90% store credit from the sale, with proof of purchase required for listing items.
Maureen Erickson, Lululemon’s senior vice-president of retail experience, emphasized the program’s role in extending the lifespan of their high-quality products, promoting sustainable consumption practices.
At the heart of this endeavor is Tersus Solutions’ advanced processing facility in Calgary, where items undergo thorough inspection, cleaning using an innovative liquid CO2 system, and refurbishment. Despite initially focusing on returns, the facility has seen a remarkable influx of orders, processing between 1,000 to 1,500 items daily, surpassing expectations.
Peter Whitcomb, CEO of Tersus Solutions, noted the company’s substantial growth in the U.S. over the past five years, as more brands seek ways to recover value from returned and used merchandise. The business model significantly benefits brands by repurposing damaged goods that would have otherwise been written off.
Industry experts, such as retail analyst David Ian Gray, acknowledge the growing trend of retailers exploring the second-hand market to cater to diverse consumer preferences and economic circumstances. The shift towards offering resale platforms under their brands provides an avenue for attracting new customers and expanding product accessibility.
Anián, a Victoria-based clothing company, embraced the resale concept early on, establishing a platform for customers to resell their products. This approach aligns with the company’s commitment to sustainability, with COO Jeff Papa highlighting the positive impact on waste reduction and customer engagement.
In conclusion, the surge in resale initiatives by prominent brands reflects a strategic move towards sustainable practices, customer engagement, and market diversification within the retail industry.