Disruptive Change

Lululemon Logo

Lululemon innovates through the existential threat of Amazon and opens Experiential Stores for an unforgettable customer experience

Challenge:

Growing competition from the new wave of online retailers

Lululemon, one of the fastest-growing companies in the world had several serious competitors in the Athleisure Clothing market.

Those competitors not only included Gap, Nike, Under armor, and a whole host of other brands but also Amazon, whose online shopping platform was taking a pound of flesh out of all brick-and-mortar retailers.

Growing competition demanded a new approach.

Solution:

They uncovered and let go of all their old ideas of what a “store” is

In a rustic woodworking shop in Yaletown, Vancouver, we used our breakthrough methodology to engage Lululemon’s founders and senior leaders from across the world in a unique conversation for what was possible.

Instead of doing more traditional “blue-sky” conversations, we used our unique methodology to first help them discover the constraints in their leadership and thinking. What past conversations were they trapped in that limited the fullest possibilities of their creativity for what a store could be?

Each leader shared their attachments to certain tried-and-true concepts that had gotten them to where they were. And one by one, they uncovered and then let go of all of their past likes, dislikes, attachments, fears, and hopes regarding what a “store” is or should be.

Results:

Innovative brand experience that cannot be cannibalized by e-commerce

The experience was one of “clearing the slate.” And in just under four hours, the group was able to come together with a breakthrough concept called the “Community Hub.”

In 2015, Lululemon opened a flagship store in New York City’s Flatiron District. At 11,500 square feet, it was their largest flagship store to date and the first store to pioneer the “Community Hub” concept.

Innovations included “The Concierge” who recommended nearby yoga classes and locations, so Lululemon shoppers could immediately don and enjoy their new pants in a class around the corner. There was a “Community Board” to help shoppers discover new places to run, new places to eat, and new classes to explore. It was a place for artists to congregate, rooftop parties to happen, and art and film to be viewed and discussed.

This innovation has since spread to other Lululemon locations, including the original Vancouver store in Kitsilano in 2017. And in 2019, the largest flagship store opened in Chicago with the latest evolution of the “Community Hub” concept to include craft beer, Beyond Meat burgers, and a full gym.

Unstoppable’s work with Lululemon helped lead them to the innovative “Community Hub” concept — an incredibly potent, in-person brand experience that cannot be cannibalized by e-commerce.

 This concept has not just reinvented Lululemon, but has impacted the entire retail industry.

1 concept

Innovative “Community Hub” concept, creating an in-person brand experience that could not be cannibalized by e-commerce

You are the only thing in your way.

Not everyone is built for this. But there’s a reason you’re not everyone.

“This transformation in our leadership added to our bottom line and for the first time in three years we are looking at once again having a substantial profit in an economy where many are fighting for their corporate lives.”

Glenise Harvey

Co-Owner, A&H Steel

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