Is Lululemon Effectively Expanding Its Store Base?
For a retail company, it is essential that customers have easy access to its products. Sales and ease of access are directly correlated. Such is the case when it comes to Lululemon Athletica‘s (NASDAQ:LULU) business.
Over the past five years, the company has worked hard to increase the store base worldwide. But how is this strategy working for the company?
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As one can see from the table above, Lululemon’s net revenue per store has fallen substantially over the five year time period. Given the way things are going, it might be worthwhile for the company to concentrate more on its e-commerce platform and expanding that in order to make up for the losses sustained here. Furthermore, it may make sense to reduce expanding its store base in the near term as the strategy is clearly not working in the company’s top-line’s favour.
Notes:
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Lululemon Athletica
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