Old Navy Launched Shop-in-Shops to Boost Activewear
The retailer has converted 42 locations to showcase its new Old Navy Sport brand for apparel shoppers.
Updated on Sept. 18, 2026 in Retail
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Old Navy has debuted dedicated shop-in-shops across 42 locations to highlight its recently consolidated activewear line, Old Navy Sport. This strategy aims to solidify the brand's position as it leans further into denim, activewear, and children's categories.
Why it matters
The shift follows recent fiscal performance challenges where Old Navy Sport helped stabilize results, prompting the company to better differentiate itself from competitors. Operators should note the use of immersive retail footprints to protect market share in a crowded apparel sector.
Old Navy operates 1,100 locations across the U.S. and currently holds fifth place in the national activewear market. The retailer is installing new shop-in-shops in 42 of those stores.
The players
Old Navy
An apparel retailer owned by Gap Inc that maintains over 1,100 locations in the United States.
Gap Inc
A global apparel retail company managing a portfolio of brands including Old Navy and Athleta.
Athleta
A premium activewear brand that has been a subsidiary of Gap Inc since 2008.
The details
Old Navy is deploying immersive, dedicated floor spaces to drive awareness for its new sub-brand. By concentrating physical footprint on denim, activewear, and children's segments, the firm is attempting to clarify its identity against broader market competition. This move builds on the momentum of the sub-brand, which contributed to salvaged sales results in the most recent fiscal quarter.
Timeline
Gap Inc acquired Athleta in 2008.
Old Navy experienced scattered store closures in Summer 2026.
The brand officially launched the Old Navy Sport sub-brand in September 2026.
Market Landscape
The expansion follows the long-term precedent set by Gap Inc's 2008 acquisition of Athleta, which established the company's footprint in performance apparel. Old Navy is now leveraging that structural history to compete for mid-market share in the activewear segment.
Retail operators should evaluate how dedicated floor-space branding impacts conversion metrics in their own categories. Marketing spend is currently tilting toward denim and children's goods, suggesting that peer competitors should monitor their own shelf-space efficiency in these areas.
The takeaway
The move demonstrates a strategic effort to reclaim market rank through physical presence rather than just online promotion. Operators should track how the performance of these 42 shop-in-shops influences future capital allocation for store renovations across the remainder of the 1,100-store fleet.
Further reading
For more on industry shifts in apparel, visit the Retail section.
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Are you currently prioritizing affordable activewear brands over more expensive, premium athletic labels?
