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 © 2013 Microsoft. All rights reserved.
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
- Should the US scrap the debt ceiling?
- Will new mortgage rules mean fewer lenders?
- Why GM, Chrysler are riding high
- Survey: Dashboard lights fail to send right message
[BRIEFING.COM] Sideways is the directional trade at the moment, which is just fine for anyone who is long the market. That's because the vast majority of today's gains were logged in the first 30 minutes of trading.
The question that remains is, will the market kick into higher gear in the afternoon session and drive the S&P 500 positive for a ninth straight week or will it fade on some understandable profit-taking activity. Recently, the market has shown a propensity to ... More
More Market News
The rollout of the new national health care plan has been far from perfect, but some sectors may get an Obamacare bump.