Lululemon will face increased competition, as Montreal-based Lolë plans to open as many as nine new Canadian stores by the end of next year. This women's activewear brand already has 14 Canadian locations, and it seeks to significantly expand both by opening new stores, as well as grow its wholesale distribution network.
Lolë has retained Montreal-based brokerage Think Retail to locate space for new Canadian stores. The brand has already announced plans to open another three locations this year, including at the Toronto Premium Outlets, Mississauga's Square One, and in Whistler, BC. Furthermore, Lolë plans to open as many as six more Canadian locations in 2015, focusing on Toronto, Calgary and Vancouver. It recently opened its 14th Canadian store in Banff, Alberta.
Lolë seeks retail space in the 1,250 to 1,600 square foot range. It is considering openings in super-regional malls, high streets, outlet centres, and tourist destinations.
Founded in 2002 in Longueuil, Quebec, Lolë, or Live Out Loud Every Day, caters to the active urban woman. It specializes in apparel for yoga, running, swimming and other activities, as well as casual fashion apparel. All locations offer free exercise meet-ups twice weekly at a local park, as well as lectures given by yoga/pilates specialists, and nutrition experts. Tea and fruit are served daily at each store location.
Lolë is expanding internationally under new ownership, both with new stores as well as extensive wholesale distribution. According to the Globe & Mail, the company's revenues are expected to surpass $105 million this year. Remarkably, its CEO hopes to achieve sales in excess of $1 billion within several years. Lolë expects to increase sales by opening new stores, as well as expanding its wholesale business, which represents currently 80% of the company's sales. The company hopes to reduce that to 55% as it opens new stores.
For reference, Lululemon achieves sales of about $1.6 billion annually.
Besides its new Canadian locations, Lolë plans to open about 50 international locations over the next five years.