Sunday, July 21, 2024

Lululemon to Launch Loyalty Program Offering Workout Classes, Other Perks

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Canadian apparel retailer Lululemon plans to seek growth in the next few years through the establishment of a membership plan, the company announced in a letter this week (April 20) about various initiatives.

“Building on strong guest interest in, and the learnings from its pilot membership program, as well as the company’s vision to create a new path for connected fitness, lululemon will launch a new, two-tiered membership program later this year,” the letter states. “The intent of the program is to build stronger engagement with its brand, community, and products, to create the most immersive fitness marketplace in the industry.”

The company offered further details in a presentation shared with analysts on Wednesday (April 20).

One slide in the presentation explains, “The essential membership program is focused on bringing community, fitness and shopping together all in one place. Within the next five years, we expect about 80% of our guests being a part of one of our membership programs.”

The future of the membership program, another slide in the presentation states, will include creating a Lululemon “community across our ecosystem,” using studios to “strengthen relationships” and driving “retention and spend per guest.”

Lululemon will focus on “creating the most immersive fitness marketplace in the industry,” the retailer said in the presentation.

The Wall Street Journal reported that Lululemon plans to make one membership tier free and charge $39 per month for the other.

In the same letter, Lululemon said it doubled digital revenue by 2026. The figure tripled from 2018 through 2021, according to the letter.

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