Lululemon not meeting demand…a good thing?
Comments(0) Blog Link: “Lululemon’s Problem: can’t meet demand?” – Melody Han
As Melody touched on in her blog, Lulelemon has not been able to meet the demand of their customers. There are two ways to look at this situation. It can either be seen as positive for the business or a negative.
It can be seen as a positive since shortages would ultimately mean that there would be no inventory going to waste. The store would sell everything in store and as a result, suffer no losses from the unsold merchandise; which is ideally what a business strives for. However, this situation can also been seen as a negative. Shortages would mean that the store would often be sold out of items, and this could lead to customers gettting frustrated and switching to a local competitor store such as Nike. Shortages would also mean that they company would lose out on the potential revenue which they would have received if they did have those items in store.
There can be two ways that people look at this situation, and the debate could go on and on. However, I truly believe that if a store does not meet the demand of their customers, such as case of Lululemon, it would ultimately be a negative for the business.
Citation: “Lululemon’s Problem? Customers Can’t Get Enough – The Globe and Mail.” The Globe and Mail. Web. 15 Oct. 2011. <http://www.theglobeandmail.com/globe-investor/lululemons-problem-customers-cant-get-enough/article1945253/>.