Lululemon adds local website, 2 stores in Spain
In its first step towards realizing its newly launched five-year growth plan and global expansion strategy, Lululemon said it will add a local marketplace website and two physical retail stores in Spain, calling it the first movement of this type in Europe since 2019.
According to the July 5 announcement, the Vancouver-based sportswear retailer said it would launch a local website dedicated to Spanish customers (lululemon.es) later this month, followed by store openings. physical locations in the main shopping areas of Madrid and Barcelona. in September.
“As a brand that supports wellness, lululemon has a strong synergy with the active and balanced lifestyle enjoyed in Spain,” Lululemon EVP of International André Maestrini said in the press release, adding that cultural and of the trade mark would give it “a unique character”. advantage” as the retailer expands into its new market.
3 key pillars
The news comes less than three months after Lululemon CEO Calvin McDonald unveiled the 24-year-old company’s new five-year growth plan, which aims to double revenue with a focus on international expansion and placing more emphasis on digital sales and menswear.
“Market expansion is one of the three key pillars of lululemon’s growth strategy,” confirms the new announcement, while highlighting that the retailer already operates around 40 physical stores in eight different European countries, including France, Germany, Ireland, the Netherlands, Norway and Sweden. , Switzerland and the United Kingdom, as well as a European Union pan-regional website.
Spain’s addition to this list not only reflects what Lululemon calls “an important lead in new and core markets,” but its initial effort to bring the brands to more people around the world is happening in the core market. from Adidas.
For his part, Adidas CEO Kasper Rorsted noted in early May that the German brand known for its sneakers and three-stripe apparel was grappling with what he called “severe external challenges” and the need to stay focused, given that Adidas makes 65% of its sales outside the EMEA region.
“While we remain nimble, we will not compromise our long-term growth opportunity for near-term earnings optimization,” Rorsted said of the brand’s first quarter results and plans to focus on capabilities. direct-to-consumer and digital this year.
Meanwhile, the brand that’s best known for its premium-priced women’s yoga pants and tops has made a concerted effort in recent months to expand its stable of products into new sports, such as tennis and soccer. golf and footwear, which increase its threat to segment leaders Nike and Adidas.
“It’s important to note that we remain in the early days of our growth trajectory outside of North America,” Lululemon Chief Financial Officer Meghan Frank said during the company’s fourth quarter earnings call. company in late March, pointing out that even though international sales grew by more than 50% in 2021, they still only accounted for around 15% of Lululemon’s overall revenue.
Most recently, the company released its fiscal first quarter results on June 2 and noted that it increased sales by 32%, thanks in part to the continued strength of its international, digital and menswear expansion efforts. At the same time, Lululemon said it increased its inventory by 74% compared to a year ago thanks to the increased use of air freight, to ensure it had the goods it needed to sell, whether in North America or Asia, or in new markets such as Spain.