Entering the $30 billion resale market, Lululemon USA launches new initiatives

Recently, Lululemon announced that it will pilot a trade-in program in California and Texas next month, which it plans to expand to an online resale program in June.

It is reported that starting in May, Lululemon customers in California and Texas will be able to trade in gently used Lululemon items in stores or by mail in exchange for Lululemon gift cards.

Over the next month, the lightly used items will begin selling online to people who want to pay less and don't mind a bit of wear and tear on the tops and bottoms. The company is calling the pilot "Like New." Lululemon is working with Trove, which has helped build resale marketplaces for brands like Levi's and Patagonia, to make it happen.

Lululemon said all trade-in items will be cleaned and items that don't meet its quality standards will be recycled. The retailer said it will rely on shopper feedback before expanding the pilot program to other states and more stores.

He added that the company is working toward several sustainability goals it outlined last fall, including having 100 percent of its products made with sustainable materials and end-use solutions by 2030.

Lululemon is certainly not the first retailer to try resale. The sites Poshmark and Depop , which sell secondhand goods, have attracted them. Last year, Levi Strauss & Co. launched a jeans buyback program called SecondHand. Nike announced a new program earlier this month to accept lightly worn sneakers, which can be cleaned and resold at a lower price in select stores.

Retailers from the Gap to Macy's to Nordstrom have also jumped into the secondhand market, partnering with marketplaces like ThredUp to encourage customers to send in used items while also saving themselves money.

Frugality is gaining popularity among Gen Z, which prioritizes environmental issues. Mentions of thrift and consignment stores ranked No. 10 on teens’ favorite brands list this spring, according to the semiannual report on Gen Z spending . That’s up from No. 23 a year ago as more teens become familiar with the secondhand market.

In the U.S., the secondhand market generates nearly $30 billion in sales annually, and is expected to grow to one-tenth of the total U.S. apparel market in the next decade, according to another report from Jefferies, which tracks online resale. Gen Z spenders are already at that level, the firm said.

Jefferies analysts said: "Given the growing importance of sustainability to consumers, and the importance of sustainability to investors, we believe most companies should find some way to participate in resale through partnerships or their own platforms."

USA

Lululemon

New Initiatives