At Lululemon, slim pickings in plus sizes
After its sheer fabric fiasco, hiding pants sizes 10 through 12 and shunning larger sizes may not make good business sense.
The Huffington Post shared the tale of a Philadelphia Lululemon employee who had to relegate size 10 and 12 pants to a table in the back of the store while smaller sizes dominated displays and racks. HuffPo asserts that such placement offers a skewed perspective of healthy body image, but it just boils down to bad business.
By hiding those sizes and shunning larger sizes altogether, Lululemon is scoffing at the roughly $332 million consumers are poised to spend on athletic wear sold at plus-size women's clothing stores this year, according to an estimate from market research firm IBISWorld. That estimate doesn't include purchases made in stores that also sell less-than-plus sizes.
Larger Americans have already been getting fairly rough treatment. Abecrombie & Fitch (ANF) caps women's pants sizes at a 10 while also refusing to sell pants in a slimming black. The Borgata Hotel Casino & Spa in Atlantic City, N.J., was just told by a judge that it could fire cocktail waitresses just for gaining weight. Lululemon, meanwhile, seems fearful of treading anywhere near plus-size territory, despite the fact that nearly 32% of Americans qualify as obese.
For those wondering what constitutes "plus-size," PLUS Model Magazine sets the bar at size 12. The New York Times and the Chicago Tribune have put it at size 14, which is also the average dress size among American women, according to a 2011 report from Women's Wear Daily.
In an interview with the Calgary Herald in 2005, Lululemon founder and former chief executive officer Chip Wilson said it takes 30% more fabric to create plus-size clothes, meaning he would have to charge a higher price for them. Wilson wouldn't do that, he said, because plus-size people are sensitive, and he didn't want his company to bear the fallout of such a move.
"It's a money loser, for sure," he told the Calgary Herald. "I understand their plight, but it's tough."
As Lululemon prepares to part with upwards of $40 million in profits this year after embarrassing even the slender wearers of its $98 yoga pants, competitors are more than happy to scoop up the plus-size business it's leaving on the table.
Though a majority of plus-size women told market research firm NPD Group they have trouble finding desirable, high-quality clothing styles, more outlets are starting to meet their demands.
Both Forever 21 and H&M have plus-size yoga lines. Lululemon's biggest competitor, Gap's (GPS) Athleta, offers "extended" sizes, as does its casual yoga gear carrier Old Navy. Lane Bryant and Avenue, known for their everyday plus-size wares, have begun to offer yoga apparel as well. Nordstrom's (JWN) Zella brand, meanwhile, hits size 24 for some styles.
At a time when its small, overly stretchy yoga fabric is costing it a bundle, Lululemon can ill afford to be so inflexible about its sizes.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains.
The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly.
Stocks began the trading day with modest gains ... More
More Market News
The company is scrambling to protect its equities arm, which could face declining volume and revenue as competitors close the gap.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'