Lululemon family moving luxury brand out of ‘beta’
Chip Wilson’s wife and son hope to officially open 15 Kit and Ace shops across Canada by early 2016
The son and wife of Lululemon Athletica Inc. founder Chip Wilson plan to expand their Kit and Ace store concept to 15 locations in Canada by early 2016.
In addition to a 3,300-square-foot store on Bloor St., the company is considering locations at Yorkdale Shopping Centre and in Oakville, and a possible temporary studio in Muskoka, said son J.J. Wilson, 25.
“We want to test things, we want to try things. The company as it is in beta,” said J.J. , borrowing a term from the software industry for products in the second stage of development.
Kit and Ace sells clothing for men and women in a technical cashmere fabric that promises to keep wearers warm in winter, and a lighter-weight variety to keep wearers cool in summer. Prices range from about $80 for a T-shirt to $150 for a button-up shirt and $488 for a blanket wrap for women.
“We wanted to ensure it was a contemporary luxury price point. We’re not making significant profit because we’re in beta,” said J.J., who launched the company with Shannon Wilson.
Luxury designer t-shirts can sell for much more — a neoprene T-shirt for women by Proenza Schouler this season is priced online at $525 (U.S.). A Proenza Schouler T-shirt in Japanese superfine cotton, made in the U.S., sells for $245.
“When we started Lululemon, people said ‘Oh, who is going to pay $100 for a pair of black, stretchy pants?’ Now it’s the norm,” said J.J.
The five existing Kit and Ace stores in Canada, including a store on Queen St. W., were on short-term leases while the company tested the concept. Now the founders are ready to make some permanent decisions, including the store on the north side of Bloor St., slated to open in August in the space where a Benetton used to operate.
Wilson’s father, Chip, launched Lululemon in Vancouver in 1998. Chip, with a net worth pegged at $2.3 billion by Forbes, resigned from Lululemon’s board in February after a sometimes controversial tenure.
Globally, Kit and Ace hopes to establish as many as 55 stores (including those in Canada) in the next 12 months, including locations in London, Melbourne, Sydney and Tokyo, said J.J.
While there have been numerous store closures in Canada in the past 12 months, the luxury market has been expanding, including growth by homegrown stalwarts Harry Rosen and Holt Renfrew.