Is resale a better fit for lululemon than other apparel brands?
The retailer said the program will officially launch on Earth Day, April 22. Like New gives owners of lululemon’s clothing the opportunity to trade in garments for e-gift cards that can be used in any of the chain’s more than 390 stores. Like New items can be purchased online at likenew.lululemon.com. The retailer is working with the resale technology firm Trove to execute the program.
All profits from the program go to profits1 to support lululemon’s Impact Agenda, which is focused on the goal of making 100 percent of the chain’s products from sustainable materials and end-of-use solutions by 2030.
“We’re deeply committed to creating quality products built to last and that are better for people and the planet,” said Celeste Burgoyne, president, Americas and global guest Innovation. “Bringing lululemon Like New to all U.S. guests is a major step toward a circular eco-system and achieving our Impact Agenda goals to reduce our environmental footprint. We’ve seen incredible momentum from our pilot program and we look forward to welcoming new guests nationwide.”
Maureen Erickson, senior vice president of global guest innovation at Lululemon, told CNBC that Like New brings new customers to the chain.
“The guest who’s buying from Like New really … skews younger and is a value-based shopper,” said Ms. Erickson.
Lululemon’s program marks the second big resale news in recent weeks. Target launched its own page on the ThredUP platform to sell second-hand clothing from its private brands and exclusive designer collaborations at discounts up to 90 percent off their original price. The page’s selection also includes luxury clothing pieces not typically sold by the retailers.
A growing number of retailers have sought to get in on resale items as the market is booming at a time of high inflation and rising concerns about the environment. Levi’s, Macy’s, Madewell, Neiman Marcus, Nike, Nordstrom, Rent the Runway, Urban Outfitters and Walmart are some of the brands and retailers that have tested resale.
The market for second-hand goods, primarily clothing, is expected to more than double to $77 billion over the next five years, according to ThredUP.
- lululemon Expands Like New Resale Program to All U.S. Stores Beginning This Earth Day – lululemon athletica inc.
- Lululemon launches a trade-in and resell program as shoppers grapple with inflation – CNBC
- Target launches new program for used apparel – RetailWire
- Lululemon to pilot ‘Like New’ clothing test – RetailWire
DISCUSSION QUESTIONS: Do you expect that lululemon’s business will benefit more from its resale program than other retailers? What do you see as the key to making resale work with new product sales at retail?