To drive foot traffic and revenue, stores are also being reoriented around experiences.Lululemon said that by 2023, about 10% of its stores will be experiential.Lululemon said that it had 60 of these stores last year. Lululemon said that the majority of the stores that it plans to open abroad this year will be in China.
And on Wednesday, he and other top executives gave more details on how exactly they plan to do so, at its investor day, the first it’s hosted since 2014.
While Lululemon is focusing on increasing digital revenue, stores are firmly at the center of its new strategy.
And in a statement this week, Mc Donald acknowledged that Lululemon “has a unique opportunity to push beyond traditional expectations.” At the same time, it’s working to fend off competition from brands like Nike and Adidas, which are trying to make greater inroads in the women’s and yoga markets — areas that have traditionally been Lululemon’s strong point.
The company reported revenue of $1.2 billion during the last quarter of 2018, up 26% the year prior.
The company expects to more than double the size of its men’s revenues by 2023, while carrying out continued expansion in the women’s and accessories businesses.
Both existing and new product categories are planned to grow, with lines supporting yoga, running and training.
“We’re ready to build upon our success and embark on the next phase of growth at Lululemon to realize the full potential of our brand,” said the company’s CEO Calvin Mc Donald in a statement, adding, “We believe Lululemon has a unique opportunity to push beyond traditional expectations to develop innovative products and become a fully experiential brand that creates compelling experiences for guests who want to completely live into the sweatlife.” The company said that it plans to fuel growth through its “Power of Three” strategic plan to drive product innovation, create integrated omni guest experiences, and to expand deeper in key markets around the world.
The company’s core women’s business and its agile store formats in North America will also remain focus areas and are expected to generate revenue growth in the low double digits annually for the next five years.
Lastly, it plans to open more stores internationally, particularly in China, while investing in digital platforms to drive brand awareness internationally.
“We’ve done a lot of work in the last few months in understanding where our current guests sweat, and what our assortment is in the activities where they sweat,” Mc Donald said at the analyst day.