Sports apparel and leisurewear specialist Lululemon’s $500m purchase of interactive home gym start-up Mirror may turn out to be one of retail’s most inspired deals this year.

The acquisition of Mirror, launched little over two years ago by New York entrepreneur and former ballerina Brynn Putnam, could provide a blueprint for other retailers as they adapt to a world transformed by the pandemic.

The collapse of trading during the outbreak has opened the door to opportunistic deals, such as Boohoo’s swoop on distressed fashion players such as Oasis. That makes perfect sense as the etailer makes the most of its platform to extend its reach.

“Since the start of the year, much of consumers’ experience has been, and is likely to remain, within the confines of their own four walls”

Lululemon’s bet on Mirror is not a distress deal. It may be more expensive but could prove an astute and complementary broadening of its offer as consumers’ lives change in the longer term.

Lululemon’s statement on the deal was full of offputting corporate-speak: the tie-up is all about “strengthening omni guest experiences through digital sweat” and part of a “vision to be the experiential brand that ignites a community of people living the sweatlife through sweat, grow and connect”.

But it’s a deal that may smell of roses more than whiffy sports socks.

Home life

Before the Covid-19 outbreak, experiential elements had rocketed up many retailers’ agendas, notably at John Lewis, which had put experience at the forefront of stores’ appeal. Lululemon pursued a similar tack and was famous for its in-store yoga classes as well as its gear.

But since the start of the year, much of consumers’ experience has been, and is likely to remain, within the confines of their own four walls. 

Mirror, which enables workouts using a digital looking glass and personalised services such as expert instruction and customised music to exercise to, was not designed for lockdown life but is certainly well-positioned for it. Its suitability for small living spaces reflects the reality of contemporary life for many, its subscription model offers a recurring income stream and its health focus puts it in a sweet spot for Lululemon.

“If Mirror lives up to the hopes, it might bridge the experiential and emotional divide that frequently exists between the online world and IRL”

Even as lockdown eases, home life will likely account for a much greater proportion of people’s time as many continue to work at kitchen tables and avoid offices and commutes.

You can see the increased importance of the domestic environment in everything from increased cooking from scratch, flagged by new Sainsbury’s chief executive Simon Roberts in the grocer’s trading update today, through to the recent trading at home enhancement giant B&Q, or Marks & Spencer’s ambitions to lead in the “new workwear” category as Zoom-looks replace the traditional suits of office life.

Like Zoom, many of the new accoutrements of domestic life are digital – another strength of Mirror,  which should turn over $100m this year and is expected to break even, or post a small profit, in 2021.

Deeper relationships

A consumer survey conducted in May for a Retail Week and Openpay special report on shoppers’ post-pandemic shopping priorities found that 41% expected to make fewer shopping trips in the future (you can download the research here). Some of that will switch to online spending with favourite retailers but less time in retail destinations means more time on other things.

That’s where forging deeper relationships with customers, based on their interests and enthusiasms, become more important and potentially more lucrative. If Mirror lives up to the hopes, it might bridge the experiential and emotional divide that frequently exists between the online world and IRL.

The deal looks well considered too because it was not prompted entirely by Covid-19. Lululemon took a stake in Mirror last year because it fitted with its strategic ambitions. 

The company’s vision, enacted in stores, has always been to “create a community hub where people could learn and discuss the physical aspects of healthy living, mindfulness and living a life of possibility. ”

In 2020, and probably in the years to come, the home will be where many people’s ‘lives of possibility’ take place, but in new ways.

To be part of a customer’s home life, beyond the transactional supply of a product, will be a powerful tool in retailers’ future armoury.