Lululemon defies brick-and-mortar woes in plan to add stores

Bloomberg

The pandemic may have wiped out demand for apparel and driven many remaining customers online, but that isn’t stopping Lululemon Athletica Inc from eyeing new brick-and-mortar stores across the US.
Unlike some overstretched competitors, the upscale purveyor of yoga pants is still at an early stage of growth, according to CEO Calvin McDonald. In a recent video interview, he laid out the company’s case for expansion amid the tumult, saying that Lululemon’s stores are small and profitable, while serving as an anchor for the brand’s loyal customers. “We may adjust slightly, but there’s still enough room for growth,” said McDonald, who took over the Vancouver-based company two years ago.
Lululemon, known for its $98 yoga pants and $58 tank tops, has benefited from
enduring demand for comfortable clothes during the Covid-19 crisis, even as most apparel categories have struggled. The company’s online sales have soared, buoying the chain while it was forced to close stores for several weeks.
While productivity hasn’t fully recovered in reopened stores, sending shares down recently, the company is taking a long-term view with landlords. Lululemon has paid full rent throughout the crisis — a contrast to brands like Gap.