Athleisure giant Lululemon will launch its trade-in and resale program later this month, after a successful trial period.
The “Like New” pilot was driven by a rise in consumer prices and a company goal to be more sustainable.
Customers will be able to trade-in their gently used leggings, tops and jackets back to the retailer in exchange for a gift card at any of the company’s US-based stores.
They will also be able to purchase from a selection of used items on a specific web page on the Lululemon website, with items added every day.
Lululemon’s SVP of global guest innovation Maureen Erickson hopes that the move will help the premium brand attract customers seeking deals.
“The guest who’s buying from Like New really … skews younger and is a value-based shopper,” Erickson said in a phone interview with CNBC.
The company also announced last month that it was planning for selective price increases to help offset some of the headwinds it was facing amid rising global inflation and supply chain issues.
The resale market has grown in recent years as customers become more and more aware of their carbon footprints.
According to Jefferies, the resale market stood at about $1 billion in 2015. Last year it was estimated to be at $15 billion. Analysts expect it to more than triple to $47 billion by 2025.
Erickson noted that a number of third-party resale sites, including ThredUp and Poshmark, are already displaying up pre-worn Lululemon clothes.
“We’ve been able to move [shoppers] over to our ecosystem,” Erickson told CNBC.
“What it allows us to do is stay vertical, which is the nature of our business … where we own the relationship with the guests.”
“Every brand is trying to figure out, as they should be, how we can all live into a more sustainable future. That is not going anywhere, and it is a global priority for us.”
Lululemon’s re-commerce site will launch on Earth Day, 22 April.
