Lululemon's CEO Says Physical Retail Isn't Going Away Anytime Soon

Depending on who you ask, the physical retail space — stores and malls — is either on the brink of obscurity or still a strong force in retail sales.

Lululemon Athletica inc. LULU's CEO Laurent Potdevin is among those who think that physical retail isn't going to fade into obscurity anytime soon.

It's indisputable that people still desire "human connections," Potdevin told CNBC's Jim Cramer in an interview. Consumers don't want to be constantly glued to their smartphones and "crave" human connections, which bodes well for Lululemon's stores and their experiences such as yoga events.

"I always say that we are based in the world of human connection and product and the control of our distribution," he said. "Continuing to lead the market we've created at the intersection of athleticism and mindfulness is a position that we're very, very proud to be in."

Lululemon Is No Nike

Many investors will be quick to assume that Nike Inc NKE's struggles in the North American market are similarly felt by Lululemon, since both companies operate in the athletic apparel space. But this would be a mistake, since most of Nike's woes are stemming from its footwear, a segment Lululemon avoids completely, the executive said.

Lululemon may be poised to take away market share from Nike in the men's segment.

"Anecdotally, in my three-and-a-half years at Lululemon, I've met a lot of guys that don't know that we have men's products," the executive said. "But I've never met a guy that, after trying our product, said, 'it's not for me.'"

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