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February 24, 2020

lululemon athletica reopens China stores amid COVID-19 outbreak

Lifestyle inspired athletic apparel company lululemon athletica has provided an update on its operations in China amid coronavirus (COVID-19) outbreak.


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Lifestyle inspired athletic apparel company lululemon athletica has provided an update on its operations in China amid the outbreak of coronavirus (COVID-19).

The retailer, which operates 38 stores in China, had closed the majority of its outlets from 3 February.

Following close observation on the evolution of the epidemic, the retailer has now reopened some of its stores.

The reopened stores are being operated with reduced time. lululemon noted that there is no disruption in its online operation.

lululemon athletica chief executive officer Calvin McDonald said: “We’re inspired by the resilience and commitment of our team in China as we navigate the emerging impacts of the coronavirus. The safety of our people is our highest priority, and we are adjusting store operations based upon the recommendations of local authorities.

“Despite the current disruption to our growing business in China, we remain confident in the long-term opportunities this market holds for lululemon.”

The retailer will provide an update on the operational impact along with the financial result on its fourth-quarter fiscal 2019 earnings call at the end of March.

Headquartered in Vancouver, Canada, lululemon offers apparel for yoga, running, training, and more.

Deaths caused by the novel COVID-19 coronavirus have now exceeded 2,600, while the number of confirmed cases have reached more than 79,000 as of the end of 23 February.

Major Asian airlines also temporarily suspended flights to China.

Besides lululemon, several other retailers including Puma, Nike, Ralph Lauren and more have warned of a negative impact on their operations due to the outbreak.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.