Competitors are challenging Lululemon's status as the golden child of retail.
Once lauded for its revolutionary business model the yoga retailer has fallen on hard times recently. Last week, the company recalled 17 percent of its pants for being too sheer.
Athleta is seen as Lululemon's biggest competitor.
The catalogue business was acquired by Gap in 2008.
Since then, the retailer has expanded to include stores and a large e-commerce contingent.
From selection to customer service, Athleta has several competitive advantages over Lululemon. They could be enough to give Athleta global dominance.
Athleta has more affordable price points
Lululemon's basic yoga pants are $98, while Athleta's are $69. This price-point discrepancy runs through most of the products.
Athleta's lower prices will draw more shoppers in.
Athleta hasn't been likened to a cult.
Lululemon's strange history and corporate culture have led to allegations that it's a cult.
One Yelp reviewer wrote that he preferred Athleta to Lululemon "because it doesn't carry that cultish Lululemon vibe that apparently based on that brand founder's fetish for Ayn Rand."
Athleta has a lenient return policy
Lululemon only allows returns within 14 days, even on gifts. Once the merchandise is returned, it has to have the original tags.
Meanwhile, Athleta lets customers return any item, for any reason, at any time. The retailer will even take back clothes after you wear them.
See the rest of the story at Business Insider