Lululemon 2011 Annual Report Download - page 7

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Table of Contents
Our Stores
As of January 29, 2012, our retail footprint included 47 stores in Canada, 108 stores in the United States, 18 stores in Australia and one in
New Zealand. While most of our stores are branded lululemon athletica, five of our corporate
-owned stores are branded ivivva athletica and
specialize in dance-
inspired apparel for female youth. We no longer operate any franchised stores as we reacquired our four remaining franchises
during fiscal 2011. Our retail stores are located primarily on street locations, in lifestyle centers and in malls.
4
customer base and supplemented our growing store base over the past three years. We plan to continue developing our e
-
commerce
website to provide a distinctive online shopping experience and extend our reach.
•
Increase our Brand Awareness.
We will continue to increase brand awareness and customer loyalty through our grassroots
marketing efforts, social media and planned store expansion. We believe that increased brand awareness will result in increased
comparable store sales and store productivity over time.
•
Introduce New Product Technologies.
We remain focused on developing and offering products that incorporate technology
-
enhanced fabrics and performance features that differentiate us in the market. Collaborating with leading fabric manufacturers, we
have jointly developed and trademarked names for innovative fabrics such as Luon and Silverescent, and natural stretch fabrics using
organic elements such as cotton and seaweed. Among our ongoing efforts, we are developing fabrics to provide advanced features
such as UV protection and inherent reflectivity. In addition, we will continue to develop differentiated manufacturing techniques that
provide greater support, protection, and comfort.
•
Broaden the Appeal of our Products.
We will selectively seek opportunities to expand the appeal of our brand to improve store
productivity and increase our overall addressable market. To enhance our product appeal, we intend to:
•
Expand our Product Categories.
We continue to expand our product offerings in complementary existing and new categories such
as bags, underwear and outerwear;
•
Increase the Range of Athletic Activities our Products Target.
Our guests purchase our products mainly for activities such as yoga,
running and general fitness. We will continue to expand our product categories and educate our guests on the versatility of our
products;
•
Expand Beyond North America.
As of January 29, 2012, we operated 18 corporate
-
owned stores and four showrooms in Australia,
one corporate-owned store and two showrooms in New Zealand, and one corporate-owned showroom in Hong Kong. We plan to
open approximately five lululemon stores in fiscal 2012 in Australia and New Zealand. Over time, we intend to expand on our own
or pursue additional joint venture opportunities in other Asian and European markets;
•
Grow our Men
’
s Business.
We believe the premium quality and technical rigor of our products will continue to appeal to men and
that there is an opportunity to expand our men
’
s business as a proportion of our total sales; and
•
Develop our Youth Brand.
We launched our youth focused brand, ivivva athletica, in the fourth quarter of fiscal 2009. We believe
the premium quality and technical rigor of our dance-inspired products designed for female youth serve an open market and provide
us with an opportunity for future growth.