If there is one industry that has been hit massively due to the pandemic, it has been the apparel sector. While many apparel retailers have closed down their bricks-and-mortar stores, quite a few have gone bankrupt or are on the brink of it.
And, so it’s refreshing to see Lululemon Athletica Inc. battling all the odds and planning to open bricks-and-mortar stores in the US.
Elated over the plans and justifying the company’s move, Calvin McDonald, CEO, Lululemon, said that its stores are small and profitable, while serving as an anchor for its loyalists and admirers.
While the apparel sector has been hit badly, Lululemon’s yoga pants at US $ 98 and tank tops at US $ 58 have been a super success amongst its consumers in these tough times. Add to all this, its e-commerce business has also shot up.
With e-commerce doing well and demand for its yoga pants shooting up, the brand is keen to add more stores in the country.
Another notable factor is that unlike many other fashion retailers, Lululemon has paid the entire rent in crisis.
The CEO substantiated the above by saying that Lululemon has been a growth retailer that has always worked well for landlords. He added whenever opportunities rise at prime locations, Lululemon’s goodwill will benefit the retailer.
Lululemon has also been lately attracting new and old customers by conducting free classes and sports events – another aspect that goes a long way to its physical store-expansion plans.
Even the second quarter has turned out to be good for the retailer with revenue touching US $ 902.9 million at 2 per cent growth. So it’s all in the right direction for Lululemon!
With 500 stores across the globe, this Canada-based yoga pant maker generated US $ 3.29 billion in 2018.