Over the holidays shopping with the Mrs. I was in Victoria Secrets and they had a whole section of toga wear. Me wife bought several outfits where she would otherwise have bought from lulu. The quality and fabric at VS is not as nice as lulu but the price sure is.
Case study of LULU is that many of their customers are middle class or upper middle class, elite class is not enough to support their large revenue estimates. However, for middle class people, saving $30 or $50 on a jacket is a big bonus. The problem for the past few years is that they are not able to find a brand that sells similar quality products as LULU offers with less price. Get ripp off or get awful stuff, most people rather to be ripp off than getting awful stuff. It changed since last year when VS, LUCY, UA, and GPS all started offer really nice and similar quality products, it usually take three to five years to start a full production line and designer line so they are catching up, I have seen more and more students at the yoga studio wear Athleta and they are super confortable. They have new stores just steps away from LULU, GPS is making inroad. LULU still has some legs, I think but it will be very tough for pricing advantage in the coming years.