Lululemon 2010 Annual Report Download - page 9

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Table of Contents
Our Stores
As of January 30, 2011, our retail footprint included 44 stores in Canada, 82 stores in the United States, four of
which are franchise stores, and 11 stores in Australia. While most of our stores are branded lululemon athletica, two
of our corporate-owned stores are branded ivivva athletica and specialize in dance-inspired apparel for female youth.
Our retail stores are located primarily on street locations, in lifestyle centers and in malls.
4
website to further reflect the distinctive retail experience that our customers enjoy in our stores while
providing greater shopping flexibility and to enhance our online experience.
•
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.
We expect customers increasingly to
purchase our products for activities such as yoga, running and general fitness as we educate them on the
versatility of our products and expand our product categories;
•
Expand Beyond North America.
As of January 30, 2011, we operated 11 corporate-owned stores and four
showrooms in Australia, and one corporate-owned showroom in Hong Kong. We plan to open 2 additional
lululemon stores in fiscal 2011 in Australia. Over time, we intend to expand on our own or pursue
additional joint venture opportunities in other Asian and European markets; and
• 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.
• Grow 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 to expand this line.