Retail Case Study: Lululemon’s E-Commerce Journey

Mar 17, 2021

(Click to view the HD version of the infographic) 

This March, we are introducing a new series – The E-Commerce Journey! In this series, we will be uncovering how retail brands from all over the world have evolved since 2020; in particular their digital efforts in e-commerce. It is well-known that the pandemic-driven shift towards online shopping accelerated the growth of e-commerce last year. Retailers that were reliant on physical stores were forced to strengthen their e-commerce strategies to meet the overwhelming demand online from consumers. 

One of the companies that rose above its competitors in 2020 was Lululemon. In spite of the challenges brought about by the pandemic, the athletic apparel fashion brand achieved multiple milestones throughout the year. Follow us as we take you through the brand’s e-commerce journey! 

March 2020 – Stores closed due to lockdowns are used to fulfill e-commerce orders

In March, Lululemon announced the acceleration of digital efforts on e-commerce as physical stores were forced to close down during the pandemic outbreak. Instead, Lululemon made good use of its physical stores to fulfill its online orders; shifting its focus on its e-commerce operations to cushion the impact to retail sales due to COVID-19. 

In the same quarter, Lululemon reported a 41% jump in digital sales, accounting for $464 million in revenue. 

“Since closing, our digital business has picked up, but it’s obviously not recovering all the volume loss from our store networks being closed, but we have seen our online business accelerate in terms of growth. But obviously, it cannot pick up the entire demand. So it is responding well, and we’ve adjusted our digital marketing initiatives.” – Calvin McDonald, CEO at Lululemon

Source: Lululemon steps up digital efforts, e-commerce as physical stores closed due to COVID-19

May 2020 – Stores reopening post-lockdown

Following China’s footsteps, Lululemon announced its plan to reopen physical stores post-lockdown. Towards the end of May, over 150 stores have reopened across North America, Europe, Asia, New Zealand, and Australia. 

“As we begin to reopen Lululemon stores around the world, we are taking a balanced and thoughtful approach to ensure all necessary precautions are in place and to prioritize the safety and wellbeing of our people, guests and communities.”

– Calvin McDonald, CEO at Lululemon

In order to maintain safe distancing, the retail brand closed off its fitting rooms, adopted a cashless payment method, and offered buy online, pick-up in-store services. 

Source: As Lululemon Reopens Hundreds of Stores, Here’s How It’s Keeping Shoppers Safe

June 2020 – Emerging stronger post-lockdown due to wellness and fitness boom

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