(Image Source: Bloomberg)
Despite the limitation in storage capacity during the pandemic, 2020 was still an amazing year for Lululemon as its net revenue grew by 11% to $4.4 billion. The e-commerce growth in 2020 accelerated its success; the retailer achieved its 2023 target 3 years early.
“2020 has reset our expectations for what is possible,” CEO McDonald said
In order to keep up with its growth ambitions, Lululemon will continue its investment in future development, starting with footwear. Lululemon is also opening two more production studios to triple the classes on Mirror and planning to distribute in-home technology to the world. Even though the online market is booming and showing positive results, the retailer remains dedicated to its physical stores.
Lululemon is looking to add 40-50 new stores globally this year and enhance its in-store shopping experience. In-store, they will continue with curbside pickup, virtual waitlist, and appointment shopping, which are customers’ preferred ways to shop during the pandemic.
Other investments will go to the digital marketplace – Lululemon is trying to replicate the in-store relationship with customers on digital platforms, including storytelling and other enhancements.
Despite the competitive nature of the retail industry, the CEO of Lululemon, McDonald isn’t fazed. The company will be working on moving forward with its pipeline of products and expanding into yoga, training, and run categories.