The pandemic may have wiped out demand for clothing and attracted many customers online, but that doesn’t stop Lululemon Athletica Inc. from looking for new brick-and-mortar stores in the United States.
Unlike some overstretched competitors, the exclusive yoga pants supplier is still in an early stage of growth, according to CEO Calvin McDonald.
Lululemon, known for his $ 98 yoga pants and $ 58 tank tops, has benefited from the constant demand for comfortable clothing during the COVID-19 crisis, even as most clothing categories have struggled. . . . The company’s online sales have exploded, boosting the chain as it was forced to close stores for several weeks.
While productivity hasn’t fully recovered at the reopened stores, prompting shares to tumble recently, the company is taking a long-term view with the owners. Lululemon paid the full rent during the crisis, in contrast to brands like Gap Inc. that suspended some payments. McDonald said he hopes the move pays off, as some retailers are forced out of the best spots.
The company has about 500 stores around the world, with 370 in North America. While most new locations are opening overseas, especially in China, Lululemon has continued to expand in the US.
Lululemon has tried to create a community of fans and regulars with free classes, sporting events and support for local “ambassadors” – athletes and yoga practitioners known as yogis. That aspect is essential to the store’s expansion strategy, McDonald said: “If our physical existed only for transactions, I would think differently.
Recent experiments also guarantee more space, he said. They include experimental stores, which debuted in Chicago last year, with gyms and coffee shops. There is a paid membership program that comes with exclusive classes. The company also plans to start selling Mirror, an exercise device that broadcasts workouts on demand that Lululemon recently acquired, in some locations in the US this year.
New clothing products are also arriving. Lululemon has dedicated more square footage to men’s apparel as part of its goal of doubling revenue in that category by 2023. And within 12 to 18 months, the brand will introduce its own line of footwear, according to McDonald.
“We’re going to take a test-and-learn approach,” said McDonald, who was a senior executive at LVMH’s beauty chain Sephora before joining Lululemon.
