Some interesting news articles have surfaced recently about some changes going on at lululemon HQ. I’m a bit of a nerd, so I find the business side of things interesting. Plus, nestled into those articles are some interesting tidbits about some things we can expect from lulu in the next few months to one year.
According to two different articles from The Globe And Mail and Huffington Post, lululemon will be rolling out a loyalty program in 2015. The articles imply that the reason this hasn’t happened sooner is that they simply have no way to track repeated orders from the same customer through their current system. Evidently, former CEO Christine Day was against collecting customer data, which I would call a pretty big oversight that shows a bit of ignorance about the depth and breadth of the lululemon fan community. An overhaul of their ordering/order tracking system is no small feat, however, so it’s no wonder that it will take some time before we see it go live.
Another system they are working to improve is inventory. As many of us have personally experienced, inventory management is a huge weakness in the company and a cause of a lot of headache for both customer and company. Sometime in 2015, lululemon is planning to have a singular inventory system, which I would speculate to mean one inventory system for purchases made anywhere in the world. This would be fantastic for those of us who get incredibly frustrated by the inability to order something from Canada to the US and vice versa. (It would be especially awesome if this inventory were similar to Nordstrom’s system, which includes inventory at all of their stores!)
On the product side of things, Chip Wilson, who still owns almost 30% of the company, has been voicing frustration with the board of directors. He used his stake to vote against 2 important members of the board of directors on the grounds that they’re taking the company in what he believes to be the wrong direction. He has said he wants the board “to focus more on long-term objectives and product innovation rather than just short-term results.” In a similar vein, a retail analyst noted that we customers “are growing impatient with the “lack of newness” and “lack of depth” among the merchandise.” I have to say I agree with all of this.
Thankfully, a lot of the crappy or basic products we’ve been seeing are reported to be on their way out. According to a Wall Street Journal article, “fashion” pieces only account for 20% of what lulu is putting out right now, but by later this year, that number should rise to 50%. This has resulted in a 23% increase in inventory in stores and online, something fans have definitely noticed as very few styles are selling out quickly. The newly hired chief product manager says she has been “has been chasing prints and working to improve the beauty of lululemon’s core products“. Sounds good to me!
Interesting post, thanks.
Does “fashion” pieces refer to the &go type of collections? Those are going to be 50% of the store later this year?!
Here are more excerpts from the article where I got clues:
“The move to patterns, bright colors and new trims from solid staples is a
trend playing out across the apparel industry, partly in response to
increased online shopping that has made it easier for consumers to
compare prices of basic items. Retailers are adding more unique products
to their lineups, like shirts and leggings with geometric patterns,
ruffles and leather trim.
[…]
Ms. Poseley said she has been chasing prints and working to improve the beauty of Lululemon’s core products.”
I read that to mean that “fashion” means fashionable, cool items, not fashion as in streetwear per se. I would say something like an alight bra would be a fashion item, while yet another pair of black/quilted waistband astro pants would not. So, no, not 50% &go stuff. :)
Ohhh okay! Phew! The &go lines always puzzle me. Thanks for clarifying.
Btw, there’s a pretty active thread regarding a loyalty program on heylululemon, including lulu staff commenting that it will happen. https://www.heylululemon.com/ideas/1113
A loyalty program would be a huge for me, as it’s one of my big complaints with Lulu (as is the return policy). The focus on fixing inventory is also good news.
I agree! It will be interesting to see what a loyalty program means to them. Will it be a points-based program where purchases earn you discounts on other items? Will it be the ability to order hot items early/exclusively, access to the occasional coupon, small bonus gifts…? Mostly, I’m interested whether a loyalty program would be more about rewarding the customer financially or with some kind of privileges.
Seriously, a loyalty program? About time! I’d love to see more prints–the ones in recent uploads have been meh…
Yes, if I see another floral print I might die! I’m hoping they’ll throw in some interesting geometric patterns like chevron, seaside dot, etc. :)