Recently, the Gap opened its first Athleta store in San Francisco. Until now, Athleta apparel and products were only available for order online. The company is hoping to have success with an actual physical retail location. This is the first credible threat to Lululemon’s yoga apparel and raises the question: can Athleta compete with the ever so popular Lululemon? Currently, Athleta has a slightly lower price point compared to Lululemon. This is a huge attraction for customers as the economy is weak and consumers have become price smart and are keeping purchases to a minimum. Lululemon has focused primarily on yoga; whereas, Athleta has a complete lifestyle offering- with swimwear, running gear, yoga wear, winter apparel, golf apparel and more. They definitely have a broader offering of product and are hoping this will attract more customers.
With the new store, customers will now be able to come in and try on Athleta’s apparel, making it easier to find the perfect fit. Personally, I think it is easier to try clothes on in store instead of buying them online and then having to return them because the size or look is not quite right. In addition, when a customer enters a store and looks around to see how the clothing is displayed, put together and marketed, they might be inclined to try more items on and ultimately purchase them. In addition, with their first physical store, perhaps Athleta can try establishing a connection with a customer before and after a purchase, much like Lululemon has done. Lululemon does this by offering yoga classes, creating community events and sponsoring athletes with its clothing. I think that if Athleta does a good job of promoting their product and is able to maintain a strong customer base, they will be as successful as Lululemon. If Athleta is able to do this, then they may prove to be a formidable competitive force in the marketplace.
For more information on the new store: