The Sneaky Way Athleta Is Enticing Lululemon's Customers

Athleta Activewear chain Athleta is trying to lure away Lululemon's customers by offering lower prices and a better return policy.

But Athleta's latest tactic improves upon a trick out of Lululemon's playbook, according to Brian Sozzi, chief equities strategist at Belus Capital Advisors.

While Lululemon has offered free yoga classes for years, Athleta offers a more varied schedule of fitness events.

By offering free CrossFit, barre, and cardio classes, Athleta is sending an enticing message to potential customers, Sozzi says.

"Athleta's scheduled class differentiation keeps its stores exciting," Sozzi writes. "Most importantly, it brings in consistent traffic of folks with likely different personal preferences, meaning the company has the opportunity to show that its products are more versatile."

Gap-owned Athleta has expanded rapidly in recent years.

The retailer has stores in more than 20 states and will open up to 100 more over the next couple of years.