Athleta, the online seller of women's yoga and athletic wear that Gap Inc. bought and then brought into the brick & mortar world, is going after Lululemon.
According to a Bloomberg News report, Athleta has a game plan of opening stores in close proximity to Lululemon locations, copying some of its traffic drivers such as offering space for classes, giving clothing to local yoga instructors to promote its line and then undercutting its competitor on price.
"Gap looks at what Lulu has established and says, 'Well, why not play off the traffic they attract and if we offer our product at a slightly lower price, we'll get share,'" Paul Lejuez, an analyst at Nomura Securities International, told Bloomberg.
According to a Wall Street Journal article, a growing number of women are carving out substantial time on a daily basis to stay fit. These women and those who aspire to be like them are potential customers for the likes of Athleta and Lululemon.
We call our customer 'happy crazy,'" Tess Roering, vice president of marketing for Athleta, told the Journal. "Her schedule is crazy but she's not looking to escape it."
As reported by Bloomberg, the $14.3 billion activewear market is growing at twice the rate of women's apparel overall, according to NPD Group. As women pursue more fitness and sport activities, they appear willing, according to Ms. Roering, to "trade up" to fabrics that wisk sweat away and reduce odors.
Athleta currently has 22 locations open in 12 states and the District of Columbia with seven others planned for summer or fall debuts.