Lululemon to Close Remaining Kids’ Stores as Part of New Growth Plan
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Lululemon is scaling back its kids’ business in a bid to focus on its growing adults’ lines as well as international expansion.
The athletic apparel company informed CNBC of the plan to shutter its remaining Ivivva stores, which currently tally at seven — four in the United States and three in Canada — and will close by mid-2020. It will also pull Ivivva merchandise from eight Lululemon stores where the brand has set up shop-in-shops.
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The announcement is expected to affect “a small number of employees working at the company’s headquarters,” located in Vancouver. Lululemon shared that it would help find job opportunities for impacted workers.
In a statement emailed to the news outlet, EVP of Americas and global guest innovation Celeste Burgoyne wrote that the decision to exit its Ivivva business was made “in order to unlock capacity to support our long-term growth.” (Ivivva debuted nearly a decade ago.)
“We have forged strong relationships with an engaged community of active girls,” she added, “and we look forward to connecting with them through the Lululemon brand.”
It marks the latest move in Lululemon’s new five-year growth strategy announced in April, aimed at doubling the sales of its men’s and online businesses as well as quadrupling revenues across the globe. The company began its departure from kids’ in 2017, when it revealed plans to close almost 50 Ivivva stores and transition sales to its e-commerce platform.
Lululemon also recently opened its biggest store to date in Chicago’s Lincoln Park neighborhood, spanning two levels and more than 20,000 square feet to house merchandise as well as a restaurant, meditation rooms and workout studios for yoga and HIIT classes. (A space on the ground floor has been dedicated to spotlighting local businesses.)
“Our physical growth is really fueled by our agile retail concept,” Burgoyne said in July, ahead of the company’s investor day. “I feel really confident that we will continue to have one of the most productive store fleets out there and that our store fleets will continue to be the envy of most retailers.”
FN has reached out to Lululemon for comment.
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