Old Navy is developing a new athleisure-led retail format, marking its latest move to double down on one of apparel’s strongest-performing categories.
The new format is expected to centre entirely around athleisure, combining performance wear, everyday comfort dressing and lifestyle positioning, rather than treating activewear as just another category within stores. While details remain limited, the concept is understood to focus on sharper merchandising, dedicated space allocation and a more immersive shopping experience.
Old Navy is already a major player in the segment, ranked among the largest athleisure retailers in the US by volume, making this a scale play rather than an experimental bet.
The timing reflects broader shifts in consumer demand. Athleisure continues to outperform traditional apparel, driven by hybrid work, wellness trends and demand for versatile clothing. For value retailers, the category also offers higher repeat purchases and stronger margins compared to basic apparel.
The move builds on a multi-year push by parent Gap Inc. to revive growth at Old Navy. The brand has been leaning into activewear through product innovation, marketing campaigns and expanded assortments, which analysts say have already helped improve store performance and customer traction.
For the franchise and global retail ecosystem, the development signals potential new store prototypes. A clearly defined athleisure format could translate into flexible footprints, shop-in-shop models or international expansion opportunities, particularly in markets where affordable activewear is gaining momentum.
