Athleta 

On November 18, 2021, Athleta opened a new 4,800-square-foot retail store at Yorkdale Shopping Centre in Toronto. The new Yorkdale store is the latest move to advance the brand towards its goal to reach two billion dollars in net sales by 2023. Athleta is a performance lifestyle brand with a mission of empowering a community of active women and girls. Athleta's versatile premium performance lifestyle apparel is designed by women for women with inclusivity at its core. Founded in 1998, Athleta integrates performance and technical features across its collection to carry a woman through her life in motion - from yoga and training to commute and travel.

 Gap Inc. 

Athleta was purchased by Gap Inc. in 2008. Gap Inc., a collection of purpose-led lifestyle brands, is the largest American specialty apparel company offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands. The company uses omni-channel capabilities to bridge the digital world and physical stores to further enhance its shopping experience. Gap Inc. products are available for purchase worldwide through company operated stores, franchise stores, and e-commerce sites. Fiscal year 2020 net sales were $13.8 billion. 

Brand Mission

 Since Gap Inc. acquired Athleta, they've worked to follow a mission. The Athleta brand is designed for women, to be inclusive, and to care for people and the planet. The brand is driven by its mission to empower women and girls in every community it serves. Canadians like to spend money with brands that have strong community roots. In support of the brand's commitment to the empowerment of women and girls in Canada, Athleta partnered with the Toronto Six hockey team, Canada's only women's professional sports team, marking the team's largest sponsorship to date. Athleta's Power of She campaign and brand experience celebrate inclusivity and the power of women and girls uplifting one another. Through the Gap Inc. P.A.C.E. program and Fair Trade U.S.A., the brand supports programs directly impacting the lives of the majority-female workers creating its apparel. Additionally, 40% of Athleta apparel is made of recycled and sustainable materials, tracking to its goal of 80% by 2020. Sustainability is an important cause for many Canadians. 2 Athleta products have been adapting to meet changes in marketing and consumer trends. For example, a 2021 campaign showcased body positivity. The brand knows it must be careful in its support of key issues, making sure that it aligns with what's important to Canadian consumers. As a new brand in Canada, Athleta has a lot of learn about its new target market. The brand mission has attracted athletes to seek sponsorships from Athleta. The quality have given them reason to be proud of the clothing, and this helps to create repeat customers for the brand. This type of thinking has earned Athleta a lot of praise, and the support of Simone Biles has given them additional public attention. Though Biles withdrew from the Olympics in 2021, Athleta continued to praise the athlete. The brand used this opportunity to demonstrate a commitment to overall health, including mental health. This is the type of message that resonates with many young adults, especially Gen Z. Athleta might be changing the ways sponsors interact with athletes, but they're definitely ready to redefine the landscape of retail.

 Athleta's Presence in Canada

 Athleta first expanded into Canada with the launch of e-commerce in August 2020, followed by the debut of its first company-operated store (in Canada) at Park Royal Shopping Centre in West Vancouver, British Columbia. "As part of our strategic growth plan, Athleta is investing in new access points to reach new customers and expand our community of empowered women and girls," said Mary Beth Laughton, president and CEO, Athleta. Athleta's new Yorkdale store features 3,000 square feet of dedicated retail space, showcasing the brand's full selection of versatile, on-trend performance lifestyle products. The store features size-inclusive mannequins and inclusive sizing in more than 500 styles ranging from XXS-3X, in-store styling appointments, free alterations and wellness-focused community events. The brand is aware that Canadian consumers have different tastes and preferences; they aren't Americans. Additionally, there are different rules and regulations for operating and marketing in Canada. Stores are an important part of the customer journey and serve as a stop on her path as she completes her daily activities, like going to a workout class or shopping for groceries. The brand needs to ensure that it opens its planned 20-30 additional stores by the end of 2021 on time. Brick-and-mortar stores can be an important factor when considering growth because people want to feel the product. On Instagram, Athleta has 759k followers. There are 83.9k followers on Pinterest, 689,215 people follow the Facebook account, and there are 52.9K Followers on Twitter. Social media posts are very visual, featuring mostly celebrities and clothing. All accounts use the tagline "Alone we are strong, united we thrive. Together we create the 3 #PowerofShe." Athleta does not maintain separate social media accounts for Canada; the followings quoted here are for Canada and the U.S. There is definitely room to grow the brand's social media following.

 The Athleisure (Athletic Leisure) Market

 Athleisure refers to a type of hybrid clothing; a fabricated style of clothing typically worn during athletic activities and in other settings, such as at the workplace, at school, or at other casual or social occasions. Athleisure has also allowed for athletic clothing to merge with other items in the closet. The 2010s was a decade known for embracing leggings, no longer a trend reserved for fitness. Given the changes in work environments since 2020, the athleisure trend continues to build momentum. In the second quarter of 2021, Athleta reported net sales of $341 million, a 35% increase from 2019. Gap Inc. isn't the only company focusing on athleisure, so it needs to find a way to stand out. Competitors include Lululemon and H&M. If you go to a store like Lululemon, you will find customers trying to market certain items as work-appropriate. Most clothing retailers, like H&M for example, will introduce an activewear line as a section in their stores. Athleta is different. It's all athletic wear in one store, but it remains intertwined with other Gap brands. All four brands share a loyalty card and they fill the same cart online. Lululemon and H&M cater to men and women, whereas Athleta is solely focused on women. 

Changing Retail Landscape 

Retailers in Canada reported fewer sales in September due to supply chain bottlenecks and a reopening of the economy that allowed consumers to spend more on services. How will Athleta manage in the post-pandemic retail landscape? The Athleta brand is powerful and speaks to a very important section of the fashion industry. Athleta caters to a trend for young adults, and these are the people who are spending money on new fashion. However, young adults are also known to be fickle in their fashion decisions.

 

Read the case and identify/highlight the key points

Use the information provided in the case. No outside information.

COMPLETE THE FOLLOWING ANALYSIS.

• Identify the Decision-Maker, Main Problem and Key Issues
• Data Analysis 
  • SWOT Analysis:  Using the information in the case, complete a SWOT analysis, explaining each point. Identify the external forces.
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  • Your recommendation from a sales and marketing perspective

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Case AnalysisAthleta DecisionMaker The decisionmaker in this case is the management team at Athleta They are responsible for making decisions about th... View the full answer