Building upon a year of considerable growth in 2018 and having already delivered on several of its key 2020 goals, Lululemon Athletica has outlined its growth strategy for the next five years. The company plans to fuel growth through three strategic plans to drive product innovation, create integrated guest experiences and to expand deeper in key markets. The growth strategy includes a plan to double men’s and digital revenues, and to quadruple international revenues. 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.
“We’re ready to build upon our success and embark on the next phase of growth at Lululemon to realise the full potential of our brand,” said CEO Calvin McDonald. “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 Power of Three strategic plan also includes contributions from new product categories and offerings, such as its membership program which is currently in pilot, as the company further leverages its position as an experiential brand for guests across channels. The company expects to more than double the size of its men’s revenues by 2023. In addition, its plans call for 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. There are also plans to continue its product collaborations, expand its popular Office/Travel/Commute category, and pursue new opportunities, such as self-care.
Expecting to more than double its digital revenues by 2023, the company will focus on offering an integrated guest experience across channels which are intended to inspire, provoke and celebrate guests who live a healthy and mindful lifestyle across multiple experiences – such as events, dynamic new store formats, and its innovative membership programme that fosters connections among guests.
Expanding across China, as well as the APAC and EMEA regions, will be continued areas of focus for the company. The company also believes that considerable growth potential remains in both the US and Canada and it plan to leverage its agile store formats, digital experience, and community connection.