Lululemon, a well-known retailer, has ventured into the resale market, aligning with the growing trend of second-hand shopping transitioning from traditional avenues to brand-operated platforms. This move by the Vancouver-based athletic and leisurewear giant mirrors similar initiatives by major players like Canada Goose and Arc’teryx, who are reimagining their stance on pre-owned apparel.

The operational hub in Calgary, spanning 25,000 square feet and managed by Tersus Solutions, showcases the tangible outcomes of this strategic shift. Here, Lululemon returns undergo meticulous cleaning, grading, and processing for resale under the brand’s Like New service. Tersus, a company based in Denver, has inaugurated its inaugural Canadian facility to handle not only returns but also pre-owned Lululemon items from customers nationwide.

The allure of resale for companies is clear-cut: salvaging products that would otherwise be discarded, thereby potentially generating additional revenue while fostering customer loyalty through credit rewards that can be redeemed for future purchases. This approach benefits consumers by offering cost savings on newer items and contributes significantly to sustainability efforts.

Lululemon recently introduced its Like New program in Canada, enabling customers to engage in peer-to-peer transactions of pre-owned Lululemon apparel on the online platform. According to the program’s FAQ section, customers can receive either 70% of the sale price in cash or opt for 90% in store credit. To list an item, individuals typically require a purchase receipt; however, certain items may still qualify for trade-ins even without this documentation.

With a focus on refurbishing returned items for resale, the facility in Calgary spearheaded by Tersus has witnessed a remarkable influx of orders, processing between 1,000 and 1,500 items daily. While the current emphasis is on managing in-store and online returns, the facility’s performance has surpassed initial projections.

Peter Whitcomb, the CEO of Tersus Solutions, highlighted the company’s exponential growth in the U.S. over the past five years, emphasizing the increasing demand from brands seeking to extract value from returned and used merchandise. Collaborating with renowned brands like New Balance, the North Face, and Arc’teryx in the U.S., Tersus is poised to expand its footprint in Canada.

Retail analyst David Ian Gray noted the escalating interest among retailers in tapping into the thriving second-hand market where products are resold. As per a DIG360/Angus Reid Institute study, a significant 77% of Canadians engaged in purchasing pre-owned items within the previous year. For retailers, integrating resale into their brand presents an opportunity to attract a broader customer base, catering to diverse price points and quality preferences.

Furthermore, early adopters like Victoria-based Anián have successfully integrated resale into their business model, offering customers a platform to sell and purchase Anián products. Emphasizing sustainability, Anián’s COO, Jeff Papa, highlighted the positive environmental impact and economic benefits generated through their resale initiative.

In conclusion, the shift towards embracing resale not only extends the lifecycle of products but also presents a viable business avenue for brands to recover value from returned goods, all while catering to evolving consumer preferences and promoting sustainable practices.