Dive Brief:
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Old Navy has consolidated its activewear assortment into a new subbrand, Old Navy Sport, Gap Inc. announced Tuesday.
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The garments include “refreshed seasonal styles, updated colors and modern silhouettes,” and offer “performance and value,” the company said. Old Navy Sport will be sold in all stores, with dedicated shop-in-shops at more than 40.
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Old Navy, which has struggled with sales this year and has a new CEO, is ranked fifth in the U.S. activewear market, according to Circana data cited in Gap Inc.’s press release.
Dive Insight:
Old Navy’s activewear is one of its strongest assortments, which has helped bolster results that otherwise were dragged down by seasonal items like casual summer dresses that didn’t sell well this year, Gap Inc. CEO Richard Dickson said Monday, speaking at the Goldman Sachs Global Consumer and Retail Conference.
“Our denim category, active category, kids and baby — these are the areas of strength for our brand and the areas that you're going to see more and more marketing as the weeks go by, and ultimately become the important categories that drive the back half,” he said.
This hasn’t been true elsewhere, including at Gap Inc.’s Athleta brand or Lululemon, where declines persist. But that stems largely from poor management and surging competition, according to Jessica Ramírez, co-founder and managing director of The Consumer Collective. Both have turned to Nike veterans — Maggie Gauger at Athleta and Heidi O’Neill at Lululemon — to lead their turnarounds.
Some analysts wonder if the category itself is waning. But it’s more that competition has grown fierce as other players have entered the space. In fact, more people are working out, thanks in part to the rising use of GLP-1s, according to Ramírez. Health is more in focus for 70% of consumers compared to a year ago, according to Consumer Collective research last month.
“The customer is much more active than it ever has been,” Ramírez said by phone Tuesday, noting that participation in racket sports, running clubs and cycling have all grown.
Old Navy’s price points have helped keep it among the top five sellers of activewear for a while, she also said. Giving the assortment “a brand name and more of a brand identity becomes a stronger affiliation for the consumer, where they can pinpoint it as something unique from a retailer,” she said. This has worked for Dick’s Sporting Goods’ Calia activewear brand and Target’s activewear private labels.
The retailer is bringing this new identity “to life across OldNavy.com, the app, stores nationwide, and the new @OldNavySport social handle,” the brand said in its release. Immersive Old Navy Sport shop-in-shops will showcase the brand in 42 stores.
“The choice is there. The consumer is there because they are working out. So it's almost up to the brand,” Ramírez said. “I do think the brands that are not doing well in the activewear space, it’s self-inflicted at this point.”
