Lululemon’s acquisition of Mirror could signal a new frontier for experiential retail—your living room.

WHAT HAPPENED: Lululemon acquired the at-home fitness company Mirror for $500 million, honing in on its goal of becoming more than just a leggings brand. 

WHY IT MATTERS

Like many other brands that relied heavily on IRL experiences pre-pandemic, Lululemon has taken a hit over the past several months. Prior to COVID-19, the athleisure brand was doubling down on flagship stores that boasted workout classes and a restaurant, in addition to yoga wear. The acquisition now allows Lululemon to bring its products into the living rooms of Mirror’s customers—part of a strategy to double its digital revenues by 2023. However, now that many consumers are hesitant to return to crowded gyms or studios, Luluemon cannot rely on its in-store experiences to drive fitness apparel sales. Instead, the company is capitalizing on the burgeoning at-home fitness industry, where companies like Peloton and Mirror have enhanced relevance. Plus, the Mirror acquisition comes with additional benefits: it will help Lulu to expand its visibility to men, as well as allow for virtual styling that embeds the brand further into customers’ living rooms. This match gives hope to other brands that were leaning into physical experiences pre-COVID-19—as long as they choose the right partner.