Lululemon month-to-month memberships for garments, occasions and lessons

Lululemon is launching a membership program — and it is about greater than exercise garments.

The athletic attire retailer will debut two tiers of memberships, one free and one paid, in a bid to construct a stronger base of loyal prospects. The choices include unique entry to objects, occasions and health lessons.

Lululemon says the transfer might assist the retailer decrease its value to amass prospects, because it creates the “most immersive health market” within the trade.

Whereas Lululemon definitely is not the primary retailer to launch a novel loyalty program, not many attire companies supply an choice that prospects pay for every month. Lululemon might set an instance for others to comply with as the corporate and its friends search new income streams past the rack.

The free membership choice will give customers early entry to Lululemon product drops and unique objects, in addition to invites to in-person group occasions, the corporate introduced Wednesday throughout an analyst day occasion.

The second choice will value members $39 per thirty days, the identical value as an all-access subscription to Lululemon at-home health platform, Mirror. Present Mirror customers will probably be rolled into this new subscription tier at no extra cost, the corporate mentioned, which can even supply exercise content material from a variety of studios that Lululemon is partnering with, together with Rumble, Y7, Pure Barre and DogPound.

Paid subscribers can even obtain the entire perks included within the free tier, when each choices formally debut within the fall.

“We wish to proceed so as to add as a lot worth as we are able to in that $39 membership tier as doable,” mentioned Michael Aragon, chief government officer of Lululemon’s Mirror, in his first media interview since becoming a member of the corporate. “It is changing into a development engine for Lululemon total.”

Aragon, a former Amazon government, took over the chief executive role for Mirror in mid-January. His job is to additionally oversee Lululemon’s broader digital health aspirations. Lululemon acquired Mirror for $500 million in 2020, at a time when related health corporations similar to Peloton, Tonal and Hydrow had been seeing explosive development with shoppers caught at house and gymnasiums seen as unsafe.

Lululemon has since rolled out Mirror shop-in-shops, the place prospects can check out one in every of Mirror’s $1,495 units, in roughly 200 areas throughout North America.

With its membership push, Lululemon hopes to introduce the Mirror model to a wider viewers, whereas additionally giving present Mirror subscribers extra bang for his or her buck.

Lululemon experimented with a loyalty program in 2018, earlier than the Covid pandemic and the retailer’s Mirror deal. Within the trial — which ran in a handful of cities throughout the U.S. and Canada — members had been charged $128 yearly for perks similar to free transport, exercise lessons and particular occasions.

Nikki Neuburger, Lululemon’s chief model officer, mentioned the corporate was in a position to be taught from the pilot what its prospects worth most: precedence entry to merchandise, invites to occasions and distinctive health content material.

“The aim right here is to create one related group throughout Lululemon and Mirror,” she mentioned.

In response to Neuburger and Aragon, Lululemon is attracting new prospects by means of Mirror who hadn’t shopped on the retailer earlier than. Mirror subscribers additionally spend “considerably extra” on common than the everyday Lululemon buyer, they mentioned.

“These offers aren’t nearly content material offers,” mentioned Aragon. “It is about getting [people] into the Lululemon life-style, and that features carrying our gear.”

Lululemon’s expanded health providing might make the retailer a better rival to an organization like ClassPass, now owned by Mindbody, which lets customers join exercise lessons from a variety of boutique studios in addition to nationwide chains — on a subscription foundation. 

It is not solely unusual for athletic attire manufacturers to enterprise down this path, both. Alo Yoga, identified for its yoga attire and endorsed by actuality TV movie star Kendall Jenner, has a $20-per-month subscription program to its personal yoga lessons. Gap‘s Athleta model teamed up with Obe Fitness so as to add a health element to its loyalty program.

Lululemon additionally on Wednesday introduced new financial targets for 2026, forecasting annual income of $12.5 billion by 2026.

Its shares closed the day down almost 5%, at $385.40. The inventory has fallen roughly 1.5% 12 months up to now.