An ownership restructure has granted the local arm of lululemon athletica access to the brand’s international growth arsenal.
The new majority owner of lululemon athletica Australia and New Zealand is Vancouver-based lululemon athletica Inc., after it increased its stake in the business from 13 to 80.3 per cent. Prior to May 12, the brand’s local presence was controlled by Melbourne-based company New Harbour Yoga, now a minority partner.
lululemon athletica Australia and New Zealand CEO David Lawn said the ownership restructure was due to the brand reaching “tipping point” locally.
“The brand has gained some quite rapid momentum and we’re now at the point where it just makes sense to be part of lululemon and to be able to put in the infrastructure and finances to think a little longer-term,” Lawn said.
He revealed the brand will undergo an infrastructure overhaul, including gaining access to the Canadian head office’s merchandise, warehouse and point-of-sale management systems. The brand will also significantly broaden its local product offering.
“It’s been an edited version but we’re really now gaining momentum,” Lawn said. “Because we’re now buying for 15 stores we can reach the minimums ourselves, so we’ve got access to the whole line.”
Store numbers will be boosted by two new Sydney sites, the first opening this month in the Mid City Centre and the second in Bondi Junction in August. The brand will open its first New Zealand store in 2011.
“We think that lululemon in Australia and New Zealand is a 20 to 30-store business,” Lawn said.
The brand’s culture of community and staff support was also an area of significant future investment, he said.
“There’s a whole education and development program around that, that we believe very strongly in providing here,” Lawn said.
lululemon athletica first entered the Australian market in 2004 and its signature black Groove pants retail for $129.
Erin O’Loughlin.