Lululemon has entered the resale market trend, following the footsteps of other major brands like Canada Goose and Arc’teryx, by introducing the Like New service. This service involves processing returned Lululemon items at a 25,000-square-foot facility in Calgary operated by Tersus Solutions, a Denver-based company. The processed items are then made available for resale within Canada.
The appeal of resale to companies lies in the opportunity to sell products again that would have otherwise been discarded. Additionally, it allows companies to build customer loyalty by offering credit for future purchases. This initiative benefits customers by providing access to discounted products and contributes to sustainability efforts.
Launched recently in Canada, Like New enables customers to buy and sell pre-owned Lululemon clothing through an online platform. Customers can receive 70% of the sale price in cash or 90% in store credit when selling items, provided they have a proof of purchase.
Despite initially focusing on returned items, the Tersus Solutions facility in Calgary has been processing a high volume of orders, exceeding expectations. Tersus CEO Peter Whitcomb notes a significant increase in the demand for recovering value from returned and used merchandise in the U.S., where the company has seen substantial growth.
Retail analyst David Ian Gray highlights the growing popularity of the second-hand market in Canada, with many retailers seeking to tap into this trend. Through resale programs, retailers can attract new customers who may prefer lower-priced options and different quality levels.
Anian, a Victoria-based clothing company, embraced resale early on by launching its own marketplace for customers to sell and buy Anian products in 2021. This initiative aligns with the company’s commitment to circularity and sustainability, with COO Jeff Papa emphasizing the positive impact on reducing textile waste.
IKEA Canada is another example of a company offering a resale program, demonstrating the potential for premium brands to engage in resale without compromising their brand image. This approach provides customers with alternative price points and encourages a more sustainable shopping experience.