Gap launched Athleta brand in Canada, its first move outside the United States. Athleta will initially be available in Canada as an online-only brand. It will later open two stores at Park Royal Shopping Centre in West Vancouver in September, and Yorkdale Mall in Toronto in November. In the US, Athleta has about 200 stores, while its online purchases account for more than half of the brand’s sales.

As per the NPD Group, athleisure brands remained strong as the COVID-19 pandemic cratered apparel sales in Canada. With many people urged to stay at home, demand for comfortable clothes surged in the country. In the 12 months up to June of this year, women’s apparel sales fell by 12 per cent compared to the pre-pandemic period ended in June, 2019. Meanwhile, athleisure sales grew by 23 per cent.

Big brands also forayed into the activewear space in Canada. Earlier this month, denim maker Levi’s announced plans to buy brand Beyond Yoga, citing the need to diversify its business. Owner of footwear brands Saucony, Mernell and Keds, Wolverine Worldwide Incalso announced plans to buy activewear brand Sweaty Betty for $410-million.

Last week, Gap raised its sales and profit forecasts for this year, as its second-quarter earnings beat estimates, driven by increasing sales at Old Navy and Athleta – the two brands on which the retailer is now focusing as part of a wider turnaround plan. San Francisco-based Gap is betting on expanding Athleta, with a goal of reaching $2-billion in net sales by 2023. It also aims to increase sales at its most profitable brand, Old Navy, to $10-billion by 2023, and to close about 30 per cent of its underperforming Gap and Banana Republic store.