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.

Lululemon declined an interview. 

“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.”

‘One of their higher margin business lines’

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.

Tersus CEO Peter Whitcomb said the company’s business in the U.S. has grown tenfold in the past five years, as more brands look for ways to recover value from returned and used merchandise.

“If you talk to any of our customers, they would actually say this is one of their higher margin business lines because these are damaged goods that are getting written off and they’re getting sold again,” said Whitcomb.

He added that Tersus works with brands including New Balance, The North Face and Arc’teryx in the U.S. and is planning to expand in Canada.

David Ian Gray, a retail analyst with DIG360 Consulting and instructor in retails studies at Capilano University in North Vancouver, B.C., said retailers are looking for ways to tap into a second-hand market where their products are already bought and sold.

“The use of Facebook Marketplace, in particular, has just exploded for pre-owned items and the buying and selling of pre-owned items has certainly gone mainstream in Canada,” said Gray.

A DIG360/Angus Reid Institute study released in August 2025 found 77 per cent of Canadians bought pre-owned items in the past year. 

For retailers, Gray said bringing resale under their own brand can open the door to customers who may not be willing or able to pay full price for their products.

“They could be drawing in some new customers and they could be bringing different price points and different quality levels to people that maybe economically, especially right now are under some pressure to manage budgets.”

Outside a Calgary Lululemon, shopper Stacey Hannah said she already looks for a deal and would consider buying or selling through the company’s resale platform. 

“With the economy the way it is, sometimes you can’t spend the money on things. I usually shop the sale rack. [The resale platform] would definitely be something that I would use,” Hannah said.

Early adopters of resale

Victoria-based clothing company Anián was an early adopter of resale, launching its own marketplace for customers to sell their Anián products to other shoppers in 2021.

“Circularity is built into the principals of Anián from the beginning. We start with post-consumer recycled fabrics,” said COO Jeff Papa. 

Papa said the resale site has attracted about 250,000 visits over the past two years and generated roughly $200,000 worth of sales. 

“That also represents about 3,600 pounds [1,630 kilograms] of textile waste that we’ve kept out of the landfill through that program,” he said.

Sellers receive the full sale price as credit toward another Anián purchase. 

“It’s an easy entry into the brand at price points that are 40 per cent of what our retail value is,” said Papa.

Other companies have been doing this even longer. 

IKEA Canada launched its Sell-back program in 2019. The company said in the 2025 fiscal year, 12,371 items were brought back through the program, with customers receiving an in-store credit. 

Gray said offering resale doesn’t necessarily mean turning a premium brand into a discount retailer.

“It’s not a discount model. It’s a model that works at a different price point,” he said.