Can I make a profit reselling name-brand clothing like Lululemon or Aritzia?

The Reality of Reselling Clothing When entering the reselling market, it is crucial to understand that clothing is generally a depreciating asset, especially mass-produced products. While high-quality, costly purchases from brands like Aritzia or Lululemon are much more resilient on the secondary market compared to fast-fashion brands like Shein, they still lose significant value the moment they are purchased new.

Understanding the "One-Third Rule" To set realistic expectations, resellers should follow a general pricing rule of thumb: your best bet is to sell a gently used clothing item at a maximum of one-third of its Manufacturer's Suggested Retail Price (MSRP).

Real-World Example: If you purchase a highly desirable jacket brand new for $140, its realistic resale value in the current market will probably settle around $40 to $50.

The Profit Margin: Because of this depreciation, the only way to find a reliable profit margin is if you manage to purchase the item significantly below that one-third mark. This means hunting for items that are aggressively marked down on clearance or sourcing extremely well-maintained used clothing at local thrift stores.

Brand Encroachment and Refurbishment Programs Sourcing high-end used clothing locally is becoming more challenging because major brands are starting to encroach on the reselling space. Companies are launching their own in-house refurbishment and resale programs to give their clothing a second life while capturing the secondary market profits for themselves.

For example, the Lululemon "Like New" program allows customers to trade in their gently used gear, which the company then cleans and resells directly to consumers online. This reduces the pool of high-quality items available to independent resellers at traditional thrift outlets.

A Strategy for Savvy Newfoundlanders Despite these challenges, a motivated reseller in Newfoundland and Labrador can still find ways to eke out a margin of profit using geographical arbitrage.

Search for Digital Deals: Monitor these official brand refurbishment sites for heavily discounted, high-demand items that slip through the cracks.

Import to the Island: Purchase these deals online and have them shipped to Newfoundland.

Resell Locally: Because physical access to these premium brand storefronts is often limited or non-existent in the province, you can resell these refurbished items locally (via platforms like Facebook Marketplace, local consignment, or pop-ups) to buyers who want the brand without paying full retail or dealing with shipping wait times themselves.