The Canadian athletic retailer Lululemon is now experimenting with a set fee in their Edmonton stores offering retailers a unique shopping experience. For $128 customers receive a breathable shirt, workout pants, access to exclusive workout classes, and free expedited shipping. Sounds like a pretty good deal, right? Well, this is how the brick-and-mortar stores are staying in the game with the e-commerce giants.
The customer experience is taking center stage as the main element in luring customers off of their laptops and couches and into a physical location. This loyalty program gives the consumer incentives to build an in-store relationship with the brand while taking part in the interactive retail experience.
Guests are seeing value beyond just the product.
Calvin McDonald, Luluemon CEO
Athletic clothing has transcended the gym and found its way into our everyday wardrobe. Leggings are literally for every occasion and workout shorts are every man’s lounging attire. Companies like Lululemon have to find ways to stay competitive with larger retail giants like Walmart and Target who seem to offer everything under the sun and have cut into the market shares Lululemon once enjoyed.
These companies don’t have the reach and resources of the global big boys, so their focus needs to turn elsewhere. Highlighting the customer experience is an aspect they can control while creating a curated relationship that increases retention loyalty.
After suffering a 3% weaker fourth quarter, Lululemon has no choice but to bear down, and put some creative marketing into action. This is one of those moments where you need to take the box, throw it out, and build an idea from scratch. Turning the customers’ attention toward the brick-and-mortar experience is a battlefield where companies like Lululemon have the advantage.