Gap-owned brand Athleta is entering the new year with a more sophisticated product and event strategy.
Last week, the brand launched the first stage of its new experiential fitness series, Move with Athleta, in New York City. This means that throughout 2024, activations such as private fitness classes for influencers, product giveaways for the public, and live music for the public will all take place in various locations in cities such as Los Angeles, Boston, and Miami. I’m planning to do it. Additionally, each month throughout 2024, the brand will host limited edition product drops on its website and in its most popular stores. The first drop will take place in December of this year and will include about four to six types of apparel, CEO Chris Blakeslee told Modern Retail.
It’s been a difficult year for Athleta, which on Thursday reported its fourth consecutive year-over-year decline in quarterly sales. Athleta’s net sales for the period ended Oct. 28 totaled $279 million, down 18% from the same period last year and comparable sales down 19%. Gap Inc. said in a press release that the Athleta team is working to “re-engage core consumers through better products and appropriate marketing.” As part of this effort, Athleta, which has more than 230 locations across the U.S., is ramping up activations, leveraging scarcity models to create buzz and rolling out new products for training and running.
These new initiatives come not long after Athleta competitor Lululemon reported an 18% year-over-year increase in net revenue to $2.2 billion. In September, Lululemon, which also hosts experiential events and drops, signed a five-year deal with Peloton.
“Move with Athleta”
With the “Move with Athleta” series, Athleta hopes to not only spread awareness of its brand, but also help people understand “what’s unique and different about Athleta,” Blakeslee said. Ta. Athleta is for women and girls only. That’s why the company’s “Move with Athleta” series is aimed at women and features the group’s “Power of She” ambassadors, including Simone Biles and Allyson Felix.
Thursday’s New York event consisted of three components: a private fitness class for influencers, a public exhibit on the High Line, and an ice skating show in Central Park with figure skater Mariah Bell. . Blakeslee said the brand expected “thousands of people” to attend the New York event. While the setup for “Move with Athleta” may vary from city to city, there will all be some overlap in terms of public aspects, education/health aspects, and influencer aspects, he said.
Athleta has previously held consumer activations (primarily local fitness classes), but this latest series is a breakout, calling it “the largest activation we’ve ever done in the brand’s history.” Slee said, pointing to the fact that the series has multiple components and more participants are expected. “The connection between brands and consumers is so important that these types of events need to become part of our DNA going forward,” he added.
Athleta doesn’t require you to purchase a product to participate in “Move with Athleta,” but the series does have a retail component. On Thursday, the first 1,000 people in the Highline segment received a free Salutation Slash Tights “stash pass” redeemable at the brand’s Flatiron and SoHo stores. By offering such perks, “we hope to increase foot traffic to our stores,” Blakeslee said.
While experiential retail activities such as fitness classes have been put on hold due to the pandemic, more athleisure brands are restarting in-person activities to stay relevant in consumers’ minds. Vuori hosts meditation and movement classes, his aura readings, and opening parties, and Beyond Yoga has hosted more than 20 in-store events since his fall 2022.
More products dropping
As for the products themselves, Athleta has traditionally released items on a seasonal basis, averaging about once a month. However, for 2024, Athleta plans to increase the number of product releases from 12 to 24 per year. Athleta will keep an additional 12 of her product releases as drops that will be released in limited quantities. These could include products in different categories or new colors, Blakeslee said.
Customers will be able to participate in the drop online and in-store. Initially, only Athleta’s mass retailers will offer the product. Blakeslee said the drops will likely start at 12 to 15 locations and then expand. Athleta may also adjust drop inventory based on interest. Athleta is considering giving its loyalty members early access to drops at some point.
Jessica Ramirez, senior research analyst at Jane Hari & Associates, told Modern Retail that she thinks the price cuts could help drive interest and engagement. But when it comes to product, Athleta “could do better in the conversation,” Ramirez added. She said: “It’s very competitive and there are a lot of great brands.”
“If consumers are going to spend money, they’re going to choose brands that they trust, that they really like, and that have innovation in their product assortment,” Ramirez said. “that [innovation], Athleta feels like it’s falling behind. ”
More brands, not just fashion brands, are adopting drops to build hype and gain social attention. Last year, the NFL partnered with Hugo Boss, OVO and Kith on co-branded products ranging from sweatpants to mini helmets. Independent artists are also using Drops to boost sales of everything from pottery to paint.
Blakeslee, who took over as Athleta’s CEO in August amid a wide range of executive changes, acknowledged that Athleta has “work to do.” “We have work to do on product design and aesthetics,” he said. “We know that. We are focused on that. There is work to be done. We know it. We are working on it.”
“But looking at the foundation that exists in the company…I’m really optimistic,” he added. “I’m more confident in what we’re going to do than when I first entered this industry.”