lululemon
From Overcapacity to Opportunity: lululemon’s Ravenhall Expansion
ThreeSixty Supply Chain Group delivers a smooth transition for global athleisure brand lululemon, which moved from two overcrowded facilities to one, state-of-the-art distribution centre without disrupting customer fulfilment.
Lululemon Athletica (lululemon) is a technical athletic apparel brand, with offerings expanding across a wide range of stylish activewear, including apparel for yoga, running, training and general lifestyle.
When lululemon’s Australian division continued to expand, their existing facilities in Derrimut and Laverton could no longer support the brand’s rapid growth. They were operating two buildings at maximum capacity, handling both retail and e-commerce fulfilment. ThreeSixty were engaged to manage the complex transition to a purpose-built facility at Ravenhall, delivering a 26-month project that would position the brand to capitalise on its growth in the Australian market.
“When the Ravenhall site went live, the Australian team absolutely exceeded expectations, they blew their productivity numbers out of the water. Having the space and structure to operate efficiently made all the difference.”
Scott Munn, former Senior Director of Fulfillment Programs at lululemon
The Challenge
Outgrowing existing infrastructure
Before moving to Ravenhall, lululemon’s primary Derrimut facility was landlocked with limited dock capacity, while the auxiliary Laverton site handled overflow and receiving operations. With a forecasted growth of 35% year-on-year in both retail and ecommerce channels, there was a strong case to develop a new facility to meet ongoing growth and staff needs.
The new Ravenhall facility is five times larger (23,000sqm) than their existing space (6,500sqm). Lululemon needed to maintain ongoing operations for their retail stores and online customers throughout the move, while also planning for future storage and automation capabilities.
ThreeSixty was engaged in September 2022 to provide project management for what would become a two-phase transformation. ThreeSixty’s Director of Project Services Andrew Helm brought together the retailer’s various teams to coordinate the complex transition, working closely with the builder, IT contractors, and operations staff to orchestrate the design review, procurement, construction, fit-out and transition to Go-Live.
The team had to manage complex internal construction activity while staff worked on-site. Careful scheduling, safety coordination, and communication between contractors, subcontractors, and safety representatives ensured work progressed without disrupting day-to-day fulfillment.
“The benchmark for me is that the customer – which is their stores and their online consumers – doesn’t notice that anything actually happened. And they didn’t. We moved the whole site without disruption to customer service, which was the goal.”
Andrew Helm, Director – Project Services
The Solution
Phase 1: Building and Transition (2022-2023)
The first phase focused on delivering the new facility and managing a seamless transition from two sites to one. ThreeSixty began with detailed plans of forecasted volumes and storage needs to define the transition requirements.
Once design strategy was laid out, the team coordinated multiple concurrent workstreams — from building construction and racking installation to IT, electrical fit-out, and WMS configuration. ThreeSixty also managed procurement of Materials Handling Equipment, office fit-out, and a comprehensive change management plan to support staff relocating to the new site.
The facility went live just prior to the 2023 peak season without disruption. Feedback indicated that staff morale improved significantly as they moved from a dark, crowded facility to a modern, ergonomic workspace five times bigger than the original.
Phase 2: Automation and Expansion (2024)
Phase 2, which went live in August 2024, introduced a two-level mezzanine adding around 12,000 square metres to the Ravenhall site. Because the building was already live, ThreeSixty led detailed planning to keep fulfilment operations running safely during internal construction. The team coordinated multiple parties — including builders, subcontractors, and safety representatives — to manage dust, noise, and access risks while maintaining day-to-day productivity.
During the design phase, the proposed mezzanine extension over the shipping area raised concerns about column placement and workflow disruption. ThreeSixty worked with lululemon’s operations team to develop concept materials that addressed those issues and secured approval to proceed. A year later, the same team relocated their entire VAS operation to that mezzanine, underscoring the long-term value of the collaborative design process.
“What we focused on was coordinating across all the different parties to keep the project moving and achieve the right outcome. Our focus was business continuity — de-risking the go-live and transition so the operation could ramp up smoothly, with flexibility built in if anything went wrong.” Andrew Helm, Director – Project Services
Mitigating disruptions
When the permanent power to the facility was delayed beyond the go-live date in Phase 1, ThreeSixty developed robust contingency plans for an extended period of generator-powered operations. This required careful electrical load planning, coordination with diesel fuelling services, and multiple layers of risk mitigation.
The limited availability of specialised forklifts required sophisticated modelling to determine how to efficiently move inventory from two packed facilities under a short timeframe, and while still picking out orders from the current site. ThreeSixty’s planning ensured that with minimal additional equipment, the team could systematically empty racking, transfer pallets, and stock new locations without disrupting customer fulfilment.
“Of all the distribution centres we built during my time at lululemon — and there has been ten — this was one of the most pleasant and straightforward projects. ThreeSixty handled everything with professionalism, and major risks were managed exceptionally well.”
Scott Munn, former Senior Director Fulfillment Programs at lululemon
The Results
During both phases, lululemon’s retail stores and online consumers experienced no service disruption, and during the peak 2024 season with the new automation in place, the facility significantly exceeded performance expectations, processing volumes well beyond initial projections.
The new facility transformed working conditions for lululemon’s operations team. The building’s size and ergonomic design became a source of pride, with Scott noting it as the most visually appealing distribution centre in lululemon’s global network.
Beyond the immediate operational improvements, the Ravenhall facility positions lululemon for continued growth in the Australian market. The building includes capacity for future expansion, potential for additional automation, and the flexibility to adapt to evolving fulfilment requirements. The successful two-phase approach demonstrates that complex automation projects can be executed incrementally without disrupting business operations.
“This facility gave staff a world-class gym, world-class lunchrooms, meeting spaces, a prayer room and parents room. It really made a place where they want to come and work for lululemon, and to stay as well.” – Andrew Helm, Director – Project Services ThreeSixty
Partnership and cultural alignment
The relationship between lululemon and ThreeSixty shows the importance of cultural fit in complex supply chain transformations. ThreeSixty’s collaborative, problem-solving approach aligned well with lululemon’s values, creating a positive and productive partnership instead of a one-dimensional, transactional relationship.
“The general vibe of ThreeSixty was exactly what we needed — experienced, collaborative and relaxed, but always in control. It never felt adversarial. We were true partners working toward the same outcome.” Scott Munn, former Senior Director Fulfillment Programs lululemon
