The Rise of Athleisure and Its Impact on lululemon

Abstract

<p>Over the last several years, there has been a rise in athleisure, defined as “a fusion of performance clothing and leisurewear” (Hahnel, 2017, p. 1). This trend reflects increasing popularity of casual, comfortable clothing designed to be suitable for both exercise and everyday wear. lululemon, a Canadian athletic apparel retailer, is one of the first retailers to offer these athleisure products that are not only high quality but also stylish. As the trend of athleisure has grown, so has Lululemon’s competition. More and more retailers are emerging with similar designs and products that are half the cost of lululemon products, hurting lululemon’s sales (Huang, 2017; Kell, 2017). In fact, lululemon has seen a decline of 18% in its stock in recent years (Salzman, 2017). The purpose of this study is to understand why there is a decline in Lululemon’s sales at the time when athleisure is becoming more popular than ever.</p>