Gap Inc. Sees 50+ Athleta Stores by 2013

When releasing Q4 results in late February, Gap revealed plans to open between eight and 10 Athleta stores in 2011, including stores in Los Angeles and New York City. The first flagship store just opened in January 2011 on Fillmore Street in San Francisco. A smaller store in Mill Valley, CA, that opened in 2010 as a test remains open.

Athleta, acquired by the Gap Inc. in September 2008, had been one of the country's largest catalog and e-commerce businesses targeting the women's fitness enthusiast but never had any physical stores.

Speaking at the conference last week, Glenn Murphy, Gap's CEO, said focus groups had shown that Athleta's customers wanted stores.

“We're not going to go crazy,' said Murphy.”It's populating in the right markets — in New York, in L.A., in Chicago, in Boston, on the right street, on the right location. Definitely, she's made it very clear to us she wants a physical asset to go to. “

 

At the same time, he expects the physical store ratio to online will never be more than 50%.

“She wants some physical stores. She's not saying a thousand,” said Murphy. “But great business, multiple categories, not just one category. It's not just yoga. It's multiple categories that we're into and great response from customers so far.” He added that said women's athletic apparel represents a “totally different category,” for Gap Inc., citing it as a a $30 billion business growing at 7% per year.

Said Murphy, “We really think we've got a nice tiger by the tail with Athleta.”