Gap Hopes to Kickbooty With Athleta Yogawear, but Its New Store Isn't Smart
Guys may just roll their eyes, but in apparel retail, it really does matter if a woman's butt looks big in those pants. Just look at what showcasing the assets did for Gap (GPS). Sales of its Athleta active wear rose by at least 10 percent in 2009, while overall sales fell 2 percent. Athleta's success was purely driven by e-commerce and catalog sales, but now Gap's got a mind to convert some of those clicks to bricks in a 5,000 square foot flagship store in San Francisco.
It's a risky proposition, even though the numbers suggest this is a burgeoning market. Americans spent $5.7 billion alone on yoga classes and products in 2008, according to a study conducted by Yoga Journal. As a whole, women's sportswear is a $31 billion industry.
Gap's cruddy track record
But Gap doesn't exactly have a great recent track record rolling out new brands. Forthe & Towne, Gap's retail panacea for women over 35, shuttered after only 18 months in 2007. And competition is pretty stiff from lululemon (LULU). The preferred purveyor of pretty togs for any asana (or a trip to the farmer's market) has proven to be a shrewd operator in a recessionary retail space. The Vancouver-based chain has double-digit sales gains, having posted a 31 percent increase in the second quarter of 2010.
What's more, lululemon's killing it in the brick-and-mortar environment because it actively engages the community before and after they become customers. Salutation Nation is a program designed for yoga newbies to join with experienced practitioners to come together in free, one-hour sessions. Lululemon also gives its stuff away to yoga and running instructors. No word yet on whether the new Athleta store will do classes or giveaways, only that the brand is partnering with nonprofit Yoga Bear for the grand opening.
Why Gap needs its head in the cloud
It's amazing that Gap doesn't really seem to be aware of the greater potential it has online. Sure, Kelly Cooper, VP of merchandising, design and product for Athleta, said in a statement that customers wanted to see and feel the goods. But frankly, they can just as easily order Athleta's best-selling Kickbooty yoga pant or the Hana running shorts and try them on in the comfort (and better lighting) of their own home.
What's more, Tess Roering, VP of marketing for the brand, tells Bloomberg that the Athleta customer is between 30 and 50 years old, works out at least three times a week and spends as much as $500 (!) on active wear annually. Clearly, this shopper knows exactly what she wants and has probably tried many other brands until she found the perfect fit. Shopping Athleta online also gives her direct access to Gap, Banana Republic, Old Navy, and Piperlime -- with one shopping cart and a flat shipping rate of $7. Can you say cross-merchandising?
Gap can certainly use a little of Athleta's oomph to boost sales. especially at its struggling namesake stores. If Gap is seriously invested in the in-store experience, wouldn't it have been more efficient (and less expensive) to do an in-store Athleta boutique?
Image via Athleta
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