Old Navy is doubling down on its activewear segment by launching a new subbrand, Old Navy Sport, as announced by Gap Inc. on Tuesday. This move is aimed at further strengthening its position in the U.S. activewear market, where it currently ranks fifth according to figures cited by Circana.
Expanding Brand Identity
Old Navy Sport will feature a variety of athletic garments with redesigned seasonal styles, updated colours, and modern silhouettes, all while offering solid performance and value. The subbrand will be available across all Old Navy locations, with special shop-in-shops set up in 42 outlets to enhance customer experience.
Capitalising on Strengths
Activewear has been a standout category for Old Navy, which has faced sales challenges this year. At a recent industry conference, Gap Inc. CEO Richard Dickson highlighted activewear, alongside denim and children’s clothing, as key areas for growth and marketing focus moving forward.
Competitive Market Conditions
The activewear market has grown increasingly competitive, as noted by Jessica Ramírez, co-founder of The Consumer Collective. Unlike some brands such as Lululemon and Athleta, which have struggled due to management issues and heightened competition, Old Navy’s strategic pricing and distinct brand identity aim to give it an edge.
Ramírez also pointed out that consumer interest in fitness is rising, driven by increased health awareness. Her research indicates that 70% more consumers are prioritising health compared to last year, leading to growth in activities such as racket sports and running.
Building Unique Brand Affiliation
By giving its activewear assortment a distinct name and identity, Old Navy aims to strengthen its consumer connection. This strategy has been successful for other retailers like Dick’s Sporting Goods and Target, whose private-label activewear brands have gained traction. The introduction of Old Navy Sport is being supported through multiple channels, including online platforms and social media, enhancing its visibility and appeal.
According to Ramírez, the ultimate success of brands in the activewear sector hinges on their management decisions, as consumer demand is robust. The newly launched Old Navy Sport intends to leverage this demand by positioning itself uniquely in the retail landscape.
Reporting based on coverage first published by retaildive.com.