Lululemon the latest brand to bet on resale as second-hand clothing becomes big business

Lululemon is the latest retailer to expand into the resale market, as second-hand shopping increasingly moves from thrift stores and online marketplaces into brands' own ecosystems.

The Vancouver-based athletic and leisurewear company joins other major brands like Canada Goose and Arc'teryx that are rethinking their approach to used clothing.

The effects of that rethink can be seen inside a 25,000-square-foot processing hub in Calgary run by Tersus Solutions, where Lululemon returns are being cleaned, graded and processed for resale as part of the brand's Like New service.

It's the first Canadian facility opened by Denver-based Tersus, which, along with returns, will also handle used Lululemon items sold for resale by customers across the country.

Experts say the appeal of resale to companies is simple: a product that might otherwise be written off can potentially be sold again, while they can earn loyalty from buyers, who are reimbursed with credit that can go toward other products.

That means customers benefit by saving on newer products, while there also an obvious benefit in terms of sustainability.

Lululemon launched Like New in Canada last month. Customers can buy and sell their pre-owned Lululemon clothing with other customers through the online platform.

According to its FAQ page, customers can receive 70 per cent of the sale price in cash or 90 per cent in store credit.

To sell an item, listers need a receipt for proof of purchase — but some items might be eligible for a trade in if there's no receipt, according to the Like New website.

"Our products are created with high standards for technical performance and quality, which makes them perfectly suited for life well beyond a single owner," said Maureen Erickson, Lululemon's senior vice-president of retail experience, in a news release.

"Like New extends the life of that product, giving guests a trusted way to keep great gear in use."

At Tersus Solutions' Calgary facility, clothing is inspected then cleaned using a proprietary liquid CO2 cleaning system that doesn't require any water. They're then refurbished and graded.

Even though the facility is mostly focusing on returned items for resale at this stage, the number of orders it's processing has been "phenomenal" so far, according to Tersus general manager Steve Bommer, who says the facility has been receiving between 1,000 and 1,500 items a day.

While the majority of items being processed for now are in-store or online returns, the numbers are "far exceeding" expectations, Bommer said.