Dive Brief:
- Lululemon last week opened a new location in New York City’s SoHo neighborhood, which represents the first store in North America featuring its “new creative expression,” according to details shared with Retail Dive.
- The 17,000-square-foot location, at the corner of Broadway and Spring Street, spans two floors and is one of the activewear brand’s largest stores in the world. It replaces Lululemon’s other location in SoHo.
- The store will offer personal shopping appointments, product personalization, and a full men’s and women’s assortment, including accessories and footwear. A location in Seoul, South Korea, following the new format also opened last week.
Dive Insight:
Lululemon is testing a new store design in one of New York City’s main shopping districts as it faces slowing sales and customer demand in North America.
The new concept is “rooted in movement, connection and sensory engagement” and serves as a blueprint for Lululemon’s locations going forward. It features 3D-printed recycled materials, design lines inspired by Lululemon products, terrazzo floors, a hand-carved timber joinery and a hand-formed tile staircase.
“Our new SoHo store reflects both the energy of New York City and Lululemon’s commitment to creating a welcoming, dynamic retail experience, designed to celebrate our product and the community,” Darin Rabb, senior vice president of global brand creative and experience at Lululemon, said in a statement. “Every detail has been curated to evoke emotion and connection, with elevated materials to reflect the quality and craftsmanship of our products.”
Since first opening in SoHo in 2007, the neighborhood has been “one of Lululemon’s most vibrant hubs,” according to Carla Anderson, who was just promoted to senior vice president and general manager of North America. The new store concept will offer a printed neighborhood guide, feature phrases unique to SoHo, and highlight local ambassadors and brand initiatives on community boards.
Anderson’s promotion, and the new approach to retail in the U.S., comes as longtime Lululemon executive Celeste Burgoyne plans to leave the retailer for a position at Vail Resorts. Burgoyne led the Americas region as president; with her departure, the retailer is consolidating all of its regions under one chief commercial officer position.
Burgoyne’s exit follows the departure of former Chief Product Officer Sun Choe last year, another instrumental executive in the retailer’s success.
As other activewear brands have emerged, competition has grown fierce in the industry, and Lululemon is not as disruptive as it once was. To combat these challenges, the retailer is working to restructure its product development and design processes, bring in more newness across the assortment and build out a team with new designers.
Editor’s note: This story first appeared in the Retail Dive: Operations newsletter. You can sign up for it here.
