The Canadian athleisure giant Lululemon, boasting annual revenues of $10 billion, has chosen Roni Irani's company to spearhead its European expansion, following his successful management of the brand in Israel.
In a significant development for Israel's retail sector, Roni Irani, co-owner of Elshard company, has secured franchise rights to operate Lululemon stores across six European countries. The deal, announced today (Wednesday), marks a rare achievement in international retail expansion from Israel, with only one previous comparable case - when Nike granted similar rights to Fox Group's Harel Wiesel for operations in Europe and Canada.
The expansion builds on Irani's impressive track record since acquiring the Lululemon franchise rights in Israel in 2022. Under his leadership, Elshard has built a formidable retail empire, currently operating 140 stores and holding exclusive import rights for prestigious luxury brands including Dolce & Gabbana, Valentino, and Balenciaga.
Lululemon's success in Israel under Irani's management has been particularly noteworthy. The brand, known for its premium pricing strategy - with leggings ranging from $110-$195 (400-700 NIS) and tops reaching $165 (600 NIS) - has successfully positioned itself as both a high-end athletic wear provider and a luxury streetwear brand in the Israeli market.
The announcement coincides with Elshard's latest retail initiative - the opening of a pop-up store at Herzliya's Arena Mall. The temporary outlet, launched ahead of Factory 54's planned relocation to the Big Glilot complex, offers unprecedented discounts of up to 90% on a range of luxury brands, including Dolce & Gabbana, Tommy Hilfiger, and Michael Kors. The total value of merchandise available at the pop-up store is estimated at approximately $13.7 million (50 million NIS).
Industry analysts note that this expansion represents a significant vote of confidence in Israeli retail expertise. The deal follows Lululemon's careful evaluation of Irani's performance in the Israeli market, where the brand has successfully maintained its premium positioning while achieving substantial market penetration.
Elshard's proven ability to manage luxury brands while maintaining their exclusive appeal appears to have been a key factor in Lululemon's decision. The company's track record of successfully marketing high-end products in Israel, combined with its understanding of both athletic and luxury market segments, positioned it as an ideal partner for Lululemon's European expansion plans.
Ice contributed to this article.
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