Dive Brief:
- Lululemon in August restructured its raw materials development team, laying off seven employees as a result, the company confirmed to Retail Dive.
- “We evolved our Raw Materials Development team structure to bring certain capabilities closer to our vendor partners, reflecting where the work can be most effectively performed and supported,” a Lululemon spokesperson said in a statement Thursday.
- The layoffs are the result of a “rebalance” of roles worldwide. “We are committed to supporting our team members through this transition,” the spokesperson said.
Dive Insight:
Changes to Lululemon’s raw materials team came a few weeks before Heidi O’Neill’s official start date at Lululemon.
The CEO began her tenure last month and announced a number of changes to the retailer’s C-suite just last week. Included among them was the appointment of Athleta CEO Maggie Gauger as chief product officer, where she will oversee Lululemon’s merchandising and design teams, alongside materials science and innovation.
O’Neill’s restructuring of the C-suite is aimed at putting product design back in focus at Lululemon, which has suffered from a number of merchandising missteps in recent years. Some of those missteps have been directly tied to the materials Lululemon uses.
The retailer’s Get Low leggings were pulled from its website in January after customer complaints that they were see-through. The retailer then put them back online with new fit and sizing guidance. That came just a couple of years after Lululemon caught flak from shoppers for its Breezethrough leggings, which customers found thin and unflattering.
While hiring a new product chief and emphasizing design are promising signs, William Blair analysts noted last week that Gauger has had “little tangible success” at Athleta, and Lululemon has yet to replace its global creative director.
“Having executives from Nike and Athleta at the top makes sense on paper as these people are experienced — but the performance of both of these brands has been far from stunning,” GlobalData Managing Director Neil Saunders told Retail Dive last week. “There is a great deal to prove in terms of how the new team will deliver.”
